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Disability Income Insurance: Business Overhead Expense

You probably understand that an owner’s disability could result in a loss of revenue to your company. However, it is important that, as a company plans for the effects of a disability on an owner, you don’t overlook an organization’s fixed expenses. While revenues may decrease with an owner’s disability, regular overhead expenses remain the same, and may often increase, stressing the importance of a Business Overhead Expense disability insurance policy.


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A Business Overhead Expense (BOE) disability insurance policy reimburses business owners for existing overhead expenses incurred while they are disabled, keeping the company up and running while the owner recovers.

Regular expenses that could be covered under a BOE policy include employee salaries, rent, leases and utilities to name a few. And BOE premiums are generally tax deductable as a business expense.

A business owner can also customize the BOE policy, at an additional cost, to help meet specific needs. It can help reimburse the company for the salary of an owner’s temporary replacement, and/or provide an additional benefit to the owner to help with their personal income loss.

Prefer to speak to someone about a BOE policy?



*CA, FL and NY state residents: please call 1-800-272-2216 for referral to an agent.

Business Overhead Expense (Policy form BOE-99, BOE-99(NC) in North Carolina and BOE-9200 in Florida and New York) is issued by Massachusetts Mutual Life Insurance Company, Springfield MA 01111-0001.

This policy has exclusions and limitations. For costs and complete details of coverage call your agent or MassMutual at 1-800-272-2216 for a referral to an agent.

This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is 52.2 percent. This ratio is the portion of future premiums which the company expects to return as benefits, when averaged over all the people with this policy.

The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual), 1295 State Street, Springfield, MA 01111-0001 and its subsidiaries C.M. Life Insurance Company and MML Bay State Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082.

Principal Underwriters: MML Strategic Distributors, LLC and MML Investors Services, LLC, Members FINRA ( and SiPC ( MML Strategic Distributors, LLC and MML Investors Services, LLC are subsidiaries of Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.


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© 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved.