Self-employed
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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