Insurance Exam Prep

Ran Chen, EA, CFP®

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[Health Insurance] 33, Business Uses of Disability Insurance

4/29/2026 • 3 min

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Business Overhead Expense (BOE) insurance covers fixed costs like rent and employee salaries, but explicitly excludes the owner's salary. - BOE policy premiums are tax-deductible as a business expense, but the benefits received are considered taxable income to the business. - Key Person Disability insurance protects a business from the financial loss of a vital employee, with the business receiving the benefit tax-free. - Disability Buy-Sell insurance provides funds for remaining owners to purchase the business interest of a partner who becomes permanently disabled. - Premiums for Key Person and Disability Buy-Sell policies are not tax-deductible, and the benefits are received by the business income tax-free. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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