Overhead Expense

Office expenses-rent, utilities, phone, staff salaries and other fixed costs-are due and payable whether you're at work every day or not. Without a policy to cover the cost of doing business, you may have to borrow, dip into your personal assets, or even close down until you're back on your feet again.

Or you can purchase overhead expense insurance^*. It can help pay typical business expenses and may even cover the cost of your temporary replacement.

In fact, you can structure a policy to cover most contingencies. What if.

• you're partially disabled and can work part time?
  Chances are good that your gross revenue would still fall below pre-disability levels and you'd need help meeting monthly overhead expenses. An optional "residual rider" can help pay the difference between covered expenses and monthly revenue.
• your monthly expenses fluctuate?
  A "carry-over" provision allows you to apply unused benefits from a low-expense month to months when expenses exceed the maximum monthly benefit.
• your business grows and expenses increase above the original indemnity amount?
  You can keep your coverage in line with your growing business (and its expenses) by building in a "future purchase option rider." It gives you the opportunity to increase coverage every year-without proof of medical insurability-to age 55.

Something else you should know: Not all policies offer the same features, benefits and options. If you comparison shop, be sure that the policy you select covers:

• both principal and interest on your building's mortgage payments
• the cost of leased or purchased equipment
• up to 80% of your replacement's salary for up to six months
• depreciation or scheduled installment payments of principal and interest on debt

One last point: taxes.

Premium payments are a reasonable business expense and therefore, tax-deductible. The benefits received during disability, while taxable upon receipt, are used to pay business expenses, which are tax-deductible. The net tax result is a wash.

Now that you have the facts, you're ready to take the next step.

Contact us now for more information.

*Policy Form 4100 underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, (Guardian) New York, NY. Policy Form OE102 in California and Policy Form NC82 in Montana provided by Guardian.

Products not available in all states. Product provisions and features may vary by state. This publication is provided as a courtesy by Berkshire Life Insurance Company of America and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.