Discover a New Benefit for Physicians and Dentists

Business overhead expense (BOE) disability insurance is a cornerstone of a well-managed corporate financial plan.  The coverage financially indemnifies the regular monthly overhead of a company in case of the partial or total disablement of the business owner.  BOE coverage allows a business to stay afloat while the owner is on the mend with the goal of getting him/her back to work.

Most plans provide 12 to 24 months of benefit after a short elimination period which can be the saving grace of business owners whose firms employ fewer than 50 employees.  BOE plans are important insurances for small to medium business owners along most industry lines.  However, there is a concentration of this type of coverage among medical and dental practices in the United States.

Physicians and dentists find BOE coverage imperative due to the operational nature of their firms which have disproportionately-high monthly overhead expenses.  Their overhead includes expensive equipment loans and professional staffing costs that most small businesses don’t usually encounter.

A common shortcoming of most BOE disability plans is that coverage excludes the salary of any employee with the same profession as the insured person.  For physician and dental practices, this means that salaries of any other doctor or dentist on the owner’s payroll will not be covered even if the medical or dental professional is an employee.

Petersen International Underwriters offers a brilliant solution that will change the coverage scope of most physician/dentist BOE policies.  PIU has developed a Salary Replacement Benefit Rider which, in addition to the monthly overhead benefit, pays the monthly salary of the business owner’s replacement while the owner is disabled.  The rider is an incredible benefit for your physician and dentist clientele as it allows all expenses to be covered as the business runs normally under the watchful eye of the replacement before the owner is able to return to work.

Hopefully you will recognize how amazing this scenario is.  The Petersen International BOE policy, with the Salary Replacement Benefit Rider, covers the overhead as well as the salary of a replacement professional, allowing the business to run without the overhead costs.  This translates into extra income for your client while he/she is disabled.  Technically, if your client has personal DI in place in addition to the PIU BOE plan, he/she could earn more while disabled than while at work!

Contact our disability insurance department at (800)345-8816 to learn more about the extra benefits of our Business Overhead Expense insurance.


Addressing the Chiropractor Market

Regarding the underwriting of disability insurance, certain occupation classes require more finesse than others.  One such classification is that of the chiropractic professional; not as risky as an underground coal miner, but definitely of more concern than a certified public accountant.  But why?  Why are chiropractors such bad DI risks for insurance companies?  And why do you, an insurance professional, have problems finding them proper income protection?

From an underwriter/insurer standpoint, chiropractors are high-risk prospects, and they have been for decades.  Like the crashed physician and surgeon market of the late 80’s and early 90’s, the chiropractic professional sector of the DI business has always held a notoriety of heavy claims vs. premium intake, and insurance companies just don’t like losing money. Read More


Graded Benefit DI: The Best Solution

Like many Americans and I would guess some of you, I have a tendency to eat more than I should, and I definitely don’t exercise enough.  By Southern California standards, I’m not the poster boy for health and fitness.  But like many of your clients, I work hard and I earn an income that requires appropriate coverage against the financially catastrophic perils of disablement.

Your clients, like me, must have their earnings properly insured so as to provide the consistent funds necessary to care for themselves and loved ones in case of a long term sickness or debilitating accident.  Personal disability insurance is the cornerstone of any balanced, sound financial plan, regardless of age or socioeconomic background. Read More

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