See how a BOE policy reimburses a disabled owner's fixed business expenses, and how unused expenses carry forward.
Most a BOE policy reimburses in any one month.
Total benefit maximum = monthly max × period.
Rent, utilities, staff salaries, leases, loan interest, pro fees.
Lumpy months (tax time, fuel, pro fees) trigger the carry-forward.
Bars = reimbursed each month (capped at the monthly max). Green line = qualifying expenses incurred. Amber dashes = monthly maximum. Violet line = unclaimed expenses carried forward.
How this works. BOE insurance reimburses a disabled owner's ongoing business expenses so the business survives until they recover. Benefits are paid monthly on a reimbursement basis: you get the lesser of your actual qualifying expenses and the monthly maximum, never a fixed cheque. A flexible contract lets expenses above the max in one month carry forward and be reimbursed in later, leaner months, and the payout tap keeps running until the total benefit maximum (monthly max × period) is used up. Expenses during the initial waiting period are the owner's to cover.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.