Q. I already have disability coverage. Why do I need BOE coverage?
A. BOE insurance can help protect you from having to dip into your Long Term Disability (LTD) insurance benefits (or savings) to pay business expenses, thereby safeguarding your LTD benefits for medical co-pays, rent/mortgage on your family home, childcare, credit card bills, utilities, etc.
Having both BOE and LTD coverage can help provide peace of mind so you can focus on your recovery. And, BOE only has a 30-day waiting period, allowing you to get your benefits sooner. To learn more about the major differences between the AICPA Long Term Disability Income and BOE Plans, view this chart.
Q. What is the definition of disability under the BOE Plan?
A. You are considered disabled if you are unable to perform the material and substantial duties of your occupation due to sickness or injury. You also must be under the care of a licensed physician. If you are working or have the capacity to work 40 hours per week, you may not receive benefits.
Q. How much BOE insurance do I need?
A. You should consider an amount that will help cover the current fixed monthly expenses needed to run your business. You can use our Monthly Expense Worksheet (PDF) to calculate your needs.
Q. Will I be covered for successive disabilities?
A. If you receive benefits for a disability, recover and become disabled again while you're still covered under the Plan, then the second disability may be regarded as a continuation of the first. You won't have to satisfy an additional waiting period. (This is also known as the "elimination" period, which is the length of time between when an injury or illness occurs and when you start receiving benefits).
However, the second disability will be considered new if you were working full-time for at least three consecutive months. The second disability will also be considered new if it is the result of an entirely unrelated cause –and the first and second disability have been separated by a length of time during which you have performed all the duties of your occupation.
Q. When will my coverage terminate?
A. Your coverage ends when you reach age 70, unless you are receiving benefits. Benefits are paid in accordance with the terms of the Certificate. Early termination occurs if:
- You are no longer a member of the AICPA
- The master policy terminates
- You withdraw from the Plan voluntarily
- You fail to make timely payments of the required contributions
- You have received benefits to the maximum period of payment
- You begin active duty in the armed forces
You may also request to move to a lower monthly coverage amount if your coverage is above $1,000.
Q. How do I qualify for benefits?
A. To receive benefits under the AICPA BOE Plan, you must be:
- Unable to perform the material and substantial duties of your occupation
- Under the regular care of a physician
- Responsible for 20% or more of the expenses of your business
You don't need to be confined to a house or hospital. If you're working or are able to work at least 40 hours per week, you may not receive benefits.
Once you request benefits, you will be asked to provide monthly evidence of the actual business overhead expenses that you are personally responsible for. Your monthly insurance benefits will be the lesser of the benefit amount you selected when you enrolled or the actual monthly business overhead expenses that are covered.
- If you elected a benefit amount of $12,000, but your actual expenses are $10,000, then you will receive $10,000 per month.
- If you elected a benefit amount of $10,000, but your expenses are $12,000, you will receive $10,000 per month.
There is a 30-day waiting period before your monthly benefits will begin.
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