Case Study – Disability Business Overheads Insurance
Jack has an Income Protection policy of $3,750 p.m. covering 75% of his net income of $60,000 p.a. ($90,000 gross income minus $30,000 business expenses).
If Jack becomes disabled, and assuming he does not have Disability Business Overheads Insurance, Jack would have to use $2,500 p.m. ($30,000 p.a. ÷ 12 months) of his $3,750 p.m. IP benefit to pay his ongoing business expenses.
That leaves him only $1,250 p.m. to live on – significantly less than the $5,000 p.m. net income (before tax) he normally earns, and probably not enough to cover his normal living expenses.
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What types of people need Business Expense cover?
It is essential for small business owners to consider, and most suited to service businesses where the owner is the main income-generator, and temporary replacement of their role is not either available, hard to find, or not suited.
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Eligible and Ineligible Expenses
Find out which business expenses are eligible for Disability Business Overheads Insurance.
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Disability Business Overheads Insurance
Would you sleep easier knowing your regular, ongoing business expenses were being paid if you were unable to work as a result of something bad happening (accident or sickness)?
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