Income Protection | Retirement Protection | Business Overhead Expenses

UnumProvident's Business Overhead Expense policy is designed for managers of companies or firms with a limited number of shareholders and for company owners. This policy provides for the reimbursement of the fixed monthly expenses that the company must continue to incur in order to remain in operation until the return of the totally or partially disabled owner. This policy allows for the preservation of the company's activities until the insured returns to work or makes a decision regarding the future of the company.

This insurance is especially important for companies or firms whose survival depends essentially on the owner's capacity to come to work.

Such features, and the fact that premiums are tax-deductible as corporate expenses, mean that the Business Overhead Expense policy should be a capital element in the company owner's financial security plans. This policy ensures the survival of the company in case of total disability.

Maintenance of insurance
The Business Overhead Expense policy is non-cancellable and its provisions are guaranteed up to age 65. After that, the policy can be maintained under specific conditions if the insured occupies a job position and is responsible for any expenses incurred in maintaining the company or office in operation. The premium rates and benefit periods may change after age 65. The insured can maintain a total disability policy up to age 75. After that, however, the benefits for total disability will be reduced by 50%.
 

Definitions of disability

Total disability: The insured is considered to be totally disabled if, due to an injury or illness:

1. He/she is totally unable to carry out the important duties of his/her occupation; and
2. He/she receives appropriate care from a medical doctor and follows the prescribed treatment.

Coverages included

Total disability
If the insured is still totally disabled at the expiry of the waiting period, any expenses incurred during the waiting period are refunded up to the maximum monthly benefit. The refundable expenses are those required for the operation of the insured's company or the exercise of his/her occupation.

Partial disability
If the insured is still partially disabled at the expiry of the waiting period, we will refund part of the refundable expenses incurred during the waiting period. The benefits for partial disability are equal to 50% of the amount of the maximum monthly benefit and are payable during a maximum of three months, as long as the maximum overall benefit amount has not been reached. It is not necessary for the partial disability to be consecutive to a period of total disability.

Accumulating Coverage
If the monthly refundable expense amount is less than the maximum monthly benefit, the differential may be carried forward and applied to another month during which the refundable expense amount is higher than the maximum monthly benefit. See policy for details. This coverage applies if the insured is totally disabled.

Continuance of coverage
If the insured is totally disabled during all of the benefit period and the total benefits paid during this period are less than the maximum overall benefit, we will continue to pay benefits for total disability for as long as the insured remains totally disabled, until the amount of the maximum overall benefit has been reached.

Presumption of total disability
If the insured incurs an irrecoverable loss of sight in both eyes, speech, hearing in both ears, or the use of two limbs, the insured shall be deemed to be totally disabled and will receive benefits for total disability.

Survivor's benefit
If the insured dies while receiving total disability benefits and before reaching age 65, the beneficiary shall receive a cheque representing one and a half times the maximum monthly benefit payable at the time of death. The payment of such benefits is not included in the calculation of the maximum overall benefit.

Policy substitution right
The insured may request, before age 60, to change the Business Overhead Expense policy to an equivalent UnumProvident individual disability policy for the same monthly benefit amount up to a maximum of $5,000, providing financial justifications are provided. This provision applies to the Business Overhead Expense policies currently being offered. Some of the older polices do not provide for a $5,000 maximum benefit amount.

Relapse of disability
Where the insured becomes disabled again due to the same causes or for related causes less than six consecutive months after recovering, UnumProvident considers this disability as the continuation of the prior period of disability.

Accumulating disability days
For the purposes of the waiting period, the periods of total disability due to the same causes or to related causes may be accumulated and considered as uninterrupted if the period between them is 12 months or less.

Refund of premiums
Where the insured has been disabled for 90 days, we shall waive the premiums required during the disability period and refund the premiums paid to the owner of the policy during the first 90 days.

Exclusions
We shall not pay any benefits for a disability due to:

• An act or accident of war, whether declared or not;
• Normal pregnancy or childbirth (except the disabling complications of pregnancy or childbirth).

Income Protection | Retirement Protection | Business Overhead Expenses
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