Income Replacement Insurance for

Business Owners and Self Employed


I am self employed; do I qualify for Income Replacement Insurance?

ü  Yes. There are very few occupations for which Income Replacement Benefits are NOT available


I am not taking a salary, I put all the earnings back into the business; do I qualify for income replacement benefits?

ü  If you generate the revenue, it is insurable income for the year it is earned


I split income with my spouse for tax purposes. Can I get income replacement insurance for all of my earnings?

ü  As long as you are the sole source of income, it is insurable and you are entitled to 100% of eligible benefits


I have a medical condition, but it doesn’t interfere with my work. Do I qualify?

ü  Injury coverage is available as long as the condition does not restrict your bodily movement or limit you in performing any daily activities


I was declined for benefits for disability insurance. Can I get Income Replacement Insurance?

ü  Essentially; disability insurance and income replacement are the same. If the decline was due to a medical condition, you will still qualify for injury/accident benefits


I claimed for benefits from WSIB (WCB), do I qualify for income replacement insurance?

ü  Previous injury/accident claims do not affect your insurability, unless it prevents you from normal daily activities


My taxable income is very minimal. Can I get income replacement insurance based my GROSS REVENUE?

ü  A plan that considers Gross Revenue calculation to determine eligible benefits is best suited in situations where taxable income is negligible or very low, or shows a loss


My business overhead expenses are my concern. Can I get insurance to pay those expenses if I get sick or hurt?

ü  Business expenses are insurable. Fixed and contractual obligations are covered, that includes administrative staff


I have employees who will continue the business if I am off sick or hurt. Can I get insurance to hire a replacement for myself?

ü  Hiring a replacement for yourself or a key person is usually the driver for a business owner to purchase income replacement. When the key person is disabled, and a replacement is required, the company could be in jeopardy paying 2 incomes, an unnecessary draw on the business revenue


I am 60 years old. Can I get insurance for income replacement at my age?

ü  Injury benefits are available from ages 18-69; illness benefits are available from ages 18-64


Will Income Replacement Benefits cover all of my income?

ü  66 2/3% - 75% of earned income; tax free when you pay the premium yourself


E&OE declaration

The foregoing is for guidelines only. There are so many products on the market that provide benefits only in depth consultation with a licensed insurance broker who represents a large number of insurers and can give you comparisons of offerings that best suit your personal needs and pocketbook.

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