A Considerable Financial Resource for Dentists
Running a successful dental practice is physically demanding and very expensive. Graduate school loans, mortgages, equipment loans, book of business buy-outs and property leases can all negatively affect the bottom line of a dental professional. Most general-practice dentists, dental specialists and oral surgeons are holders of multiple bank notes, letters of credit and/or business loans to compensate for expenses above and beyond basic overhead costs.
The lenders of such capital often require financial protection in the form of collateralized insurance – life and disability. The life insurance requirement can in most cases be addressed by the assignment of benefits of a traditional term product. The disability insurance requirement, on the other hand, poses a more complicated predicament.
Within the disability insurance realm, a dentist has numerous plan choices, but most are ineffectual for proper loan indemnification or are enacted at the detriment of other necessary forms of financial protection. A common, yet misguided option is the assignment of personal disability benefits for business loan requirements. This option usually solves the demands of the lender, but at great financial risk to the client. During a period of disability, the client’s personal income benefits would flow to a third party instead of the pocket of the disabled where they are needed most during a financial crisis. This option directly endangers the economic wellbeing of the dentist and his or her family.
Other options include the assignment of business overhead expense or key person DI policy benefits. But those products limit maximum benefit periods to 12 to 24 months which is highly inadequate when considering most dental business and equipment loans land in the five to 10 year term range.
Petersen International Underwriters has the appropriate solution for both hard-working dentists and the financial institutions that loan then money. Our Loan Indemnification Disability Insurance program is designed to cover 100% of loan repayment schedules with “own occupation”, specialty-specific defined benefits. Policy terms are very flexible and designed to mirror loans with monthly benefit periods up to 10 years that can be dovetailed with optional lump sum benefits. The client may also include a residual disability rider as well as a “prime flex loan adjustment” benefit which allows payment schedules to coordinate with variable interest rates.
In addition to an individual, fully-underwritten policy structure, Petersen’s loan DI plan can also be implemented on a multi-life, group discounted, guaranteed-issue platform for dental practices with three or more partners requiring coverage.
Most importantly, the Petersen International Loan Indemnification DI plan does not coordinate nor tamper with personal DI benefits. The plan is available in excess of any personal or group DI, key person, BOE or buy/sell coverage. Although the product is a perfect fit for owners of busy dental practices, this insurance also best meets the loan indemnification needs of owners working in most other industries to satisfy lender requirements and further protect one’s financial wellbeing.
For additional insurance solutions for your dentist clients and business prospects, call Petersen International at (800)345-8816.