Business Overhead Expense (Metropolitan Life)

Today's self-employed Professional is faced with several problems when sickness or injury causes a Total Disability. Income may cease immediately but your office overhead expenses continue, putting an added drain on your resources. MetLife's Business Overhead Expense policy can help protect your future by helping to keep your office open.

The premiums for this plan are tax-deductible as business expenses. During disability, benefits received are included in your gross income, but as the expenses covered are generally tax-deductible, no net tax liability may exist.

Treloar and Heisel has selected this policy underwritten and issued by Metropolitan Life Insurance Company with a discount for the specialist.

We encourage your thoughtful consideration of this important insurance.

Non-cancelable and Guaranteed Renewable to age 65

As long as your premiums are paid on time, MetLife cannot change your coverage or your premium rates until the first premium due date on or after your 65th birthday. The base policy is then renewable from age 65 to 70 if you are actively employed full-time and still responsible for paying the expenses of the business.

Benefit Period
You can choose total benefits equal to 12, 18 or 24 month benefit period.

Definition of Total Disability
You will receive a monthly benefit if, due to impairment caused by injury or sickness, you are not able to perform the material and substantial duties of your regular occupation and are under the appropriate care of a physician..

Periods for Which Benefits are Payable
MetLife will reimburse you for the (actual) covered expenses that you incur in the operation of your business, up to the monthly benefit amount purchased, if you are disabled (see definition above). Benefits will begin to accrue after the elimination period and will continue until you recover from disability or the benefit period ends, whichever is earlier.

Covered Business Overhead Expenses
Covered Business Overhead Expenses are the Insured's share of expenses that are actually incurred in running his/her business while totally disabled. These expenses include, but are not limited to, the following:

1. Rent;
2. Utilities and phone;
3. Employee wages;
4. Maintenance services;
5. Depreciation;
6. Taxes and mortgage interest on business property (that you own and use in your business);
7. Property and liability insurance;
8. Malpractice insurance;
9. Dues for professional associations; and
10. Other fixed expenses which are normal and customary to the operation of your practice.

Business Overhead Expenses that are not Covered

1. Income taxes;
2. Salary, fees, drawing accounts, or other remuneration for: you; any partner, shareholder or member of your professions; anyone sharing business expenses with you; anyone employed to perform your duties, except as described in the policy; or any member of your immediate family; or
3. Payments on mortgage principal or the principal of any other indebtedness;
4. Cost of merchandise: or
5. Cost of implements you use in your practice.
6. Monthly expenses for which you were not normally and customarily liable on a periodic basis prior to the start of disability; or
7. Any expenses that would otherwise constitute Covered Monthly Expenses that are reimbursed under another business overhead expense type policy.

Waiver of Premiums
After the date you satisfy the elimination period, MetLife will waive any premiums that becomes due while you remain disabled. Your policy and its benefits will continue as if the premium had been paid. MetLife will also refund to you any premium that you paid and that became die during the period on which the elimination period was satisfied.

Standard Features:

• Partial Disability Benefit
• Exchange Privilege (through age 59)
• Extension of Benefits
• Presumptive Disability
• Recurrent Disability

Guaranteed Insurability Option Rider[2]
This rider allows the Insured to increase coverage on every other policy anniversary to age 50 or 51, without additional medical underwriting. The maximum benefit increase per option date and the maximum total increase under this rider are indicated in the policy. An unused option may be carried over only to the next option date.

  [2] These Riders are available at an additional cost.

Exclusions & Limitations (subject to state variations)
Benefits will not be paid for disability:

1. Due to an act of war, whether declared or undeclared;
2. Due to pregnancy or childbirth—but complications of pregnancy (as defined in the policy) are covered;
3. Due to any loss MetLife has excluded by name or specific description;
4. Due to the Insured's committing, or attempting to commit, a felony;
5. Existing while the Insured is legally incarcerated or detained; or
6. Caused by an intentionally self-inflicted injury.

Benefits will not be paid for a disability that starts during the first 2 years after the effective date of the policy if it was due to a Pre-Existing Condition. Pre-Existing Condition means a sickness or a physical condition for which, in the 5 years prior to the date of policy issue:

1. Medical advice or treatment or care was contemplated, or was recommended by or received from a physician; or
2. Symptoms existed that would cause an ordinarily prudent person to seek diagnosis care or treatment.

This limitation does not apply to any condition that was disclosed, and that was not misrepresented, in the application for coverage and was not excluded by name or specific description.

List the normal and customary fixed, recurring monthly expenses of the Business/Practice for which you are liable. In the event of shared ownership, include only your share of the average monthly expense.

Any expense which covers a period of time greater than one month should be prorated monthly over the period it covers.

Electricity
Heat
Water
Laundry
Telephone
Postage
Employees wages*
Depreciation of owned equipment & premises
Mortgage interest or rent
Property taxes
Accounting fees
Dues for professional associations
Malpractice premiums
Business/Professional insurance premiums
Other fixed overhead expenses

*Do not include wages, fees or other compensation to yourself, any member of
your family, any member of your profession or occupation employed by or
working with you, or any person employed to perform your duties.