BUSINESS USES FOR DISABILTY

Question 1

BUSINESS OVERHEAD EXPENSE POLICY

Answer 1

PAYS BUSINESS OVERHEAD EXPENSES IF OWNER BECOMES DISABLED- RENT, UTILITIES, SALARIES

Question 2

BUSINESS DISABILITY BUYOUT POLICY

Answer 2

IF ONE OF THE OWNERS BECOMES DISABLED, THE OTHER OWNER CAN BUY THEM OUT- HAVE TO WAIT 2 YEARS- PREMIUMS NOT TAX DEDUCTIBLE

Question 3

KEY PERSON DISABILITY

Answer 3

BUSINESS BUYS A DISABILTY POLICY OF KEY EMPLOYEE, IF KEY EMPLYEE BECOMES DISABLE THE PROCEEDS ARE PAID TO THE BUSINESS- PREMIUMS NOT TAX DEDUCTIBLE

Question 4

TAXATION FOR BUSINESS USE

Answer 4

IF BUSINESS CAN’T DEDUCT THE PREMIUMS AS A BUSINESS EXPENSE, THEN THE BENEFITS WILLBE RECEIVED TAX FREE

Question 5

GROUP DISABILITY INCOME TAXATION

Answer 5

1. PREMIUMS ARE TAX DEDUCTIBLE TO BUSINESS

2. EMPLOYEE’S BENEFITS ARE TAXED( BECAUSE IF INCOME)

Question 6

GROUP PROBATIONARY PERIOD

Answer 6

SPECIFIED TIME PERIOD AFTER BEING INCEPTED IN A POLICY THAT HAS TO PASS BEFORE BENEFITS ARE PAYABLE

Question 7

HOW OFTEN IS PROOF OF DISABILTY REQUIRED

Answer 7

EVERY 6MTHS