Office Overhead Insurance is designed for members who own and operate their own business. The day to day expenses of operating a business keep accruing even if you’re unable to work. This plan provides enough coverage to maintain your business should you suffer a short-term or permanent disability.
This product reimburses your financial obligations of operating your business while you are disabled and unable to work. You can choose the amount of coverage that suits your needs. If you become disabled, we will pay a benefit equal to your eligible business expenses for the month, up to your chosen benefit amount. If your business has more than one owner, your Office Overhead Insurance will only cover the portion of eligible expenses for which you are responsible.
You can choose a waiting period of 30 or 90 days. This represents the length of time you must be disabled before any benefit payments can begin. You can choose more than one waiting period, but the total benefit cannot be greater than the lesser of:
a) $5,000 per month or;
b) 100% of your eligible business expenses.
If you are totally disabled, we will pay your eligible benefit amount each month. Benefit payments begin after the waiting period and continue up to 18 months while you are totally disabled. No benefits are payable for total disability after you reach age 65.
If you are partially disabled, we will pay you 50% of your monthly eligible benefit amount. Payments for partial disability can begin up to age 65 and can continue for a maximum of 6 months while you remain partially disabled.
According to current Canadian tax laws, these benefits are not taxable if you personally pay the premiums. The benefits are taxable to you personally if your business pays the premiums.
Waiver of Premium
While you are collecting benefits for either total or partial disability, all Office Overhead premiums will be waived.
Coverage is available in units of $100.
The maximum monthly benefit you may apply for is the LESSER of:
a) $5,000 per month, or
b) 100% of your eligible business expenses.
Premiums are calculated each year based on your age at June 1st, and increase as you reach a higher age band.
|Your Monthly Premium (per $100 unit)
Age at June 1st*
|30 - 39
|40 - 49
|50 - 59
|60 - 64
Plus provincial taxes where applicable.
Members are eligible to apply for Office Overhead Insurance if they are under 61 years of age and residing in Canada. Members must also own at least 25% of a business, actively work at that business and be directly responsible for generating some of the business income and for some of the business expenses.
Member, as defined under the plan, means a member in good standing with the Alumni Association.
Eligible business expenses can include: rent, utilities, telephone, accounting services, salaries of employees, business taxes, postage, equipment depreciation, and other normal and customary expenses. Expenses not covered include: salaries for yourself and your business partners, costs of any goods, merchandise, materials, equipment, furniture, fixtures, implements or pharmaceutical products, or any non-customary expenses for which you would not regularly be liable for payment.
Definition of Disability
"Totally disabled" or "total disability" means your inability, solely due to sickness or injury, to perform all of the normal duties of your regular occupation. You are not totally disabled if you are working full or part-time, or if you are retired. You must be under the regular care of a licensed physician to be totally disabled.
"Partially disabled" or "partial disability" means your inability, solely due to sickness or injury, to perform at least 50% of the duties of your regular occupation. Your partial disability must follow a period of total disability for which you were receiving benefits under this plan.
Coverage will terminate on the earliest of the following dates:
- the end of the month in which your written request to cancel your insurance is received by iA Financial Group;
- the date the Group Master Policy between the Alumni Association of Lakehead University and iA Financial Group terminates;
- the end of the month in which you reach age 65;
- the date you are no longer responsible for generating income and covering expenses for your business.
Limitations & Exclusions
Some business expenses are not covered. These include salaries for yourself and your business partners, costs of any goods, merchandise, materials, equipment, furniture, fixtures, implements or pharmaceutical products, or any non-customary expense for which you would not be regularly liable for payment. If you are a co-owner of a business, your Office Overhead Insurance covers only your share of eligible expenses.