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Qualified Sick Pay

This is not a product, but an IRS code requirement. If the insured is a business owner who wants to provide individual disability benefits to some employees and deduct the premiums as a business expense, he or she has to file a Qualified Sick Pay Plan (QSPP) document with the IRS before they can do so. This document is prepared by an attorney or Third Party Adminstrator (just like a 401K plan document). Many business owners are unaware of this until they file a tax return and include a deduction for the premiums, only to be told that they cannot make such a deduction. Many carriers can provide sample documents and instructions on how to implement this process. See the Financial Underwriting & Taxation file in Broker Resources.


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