Business Insurance Option is an affordable policy rider on Disability Insurance policies authorizes the business owners to top up additional salary protection should the business improve in value.
Similar to the Future Income Option, the Business Insurance Option warrants the medical insurability of the partners in the business. An example of this: one of the partners was diagnosed with a health issue (such as hypertension) but, at the same time, their enterprise in performance. Purchasing extra insurance coverage later could very well be an issue with the common applicant. However, thanks to the Business Insurance Option, the client may augment her or his income coverage once every two years. This is called the “option date”.
This is what you can expect for the rider:
- Additional insurance can be pushed up by as much as 18% of the limit option amount available..
- Financial attest of insurability is required, but the insured does not have to provide any health proof with these option dates in effect.
- As the client takes advantage of this option’s benefit, the additional fee is derived based on their current age, not their original application age.
- The terms and coverage type of the additional coverage are the same as those of the original insurance plan.
Author, Lorne S. Marr, is an independent insurance broker and an expert on special insurance arrangements. Lorne works with over a dozen Canadian insurers, such as London Life Insurance Company or Sun Life Insurance.