Financial Solutions 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 be easily addressed by the assignment of benefits of a 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 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/her family.
Other options include the assignment of business overhead expense or key person DI policy benefits. But those products usually limit benefit periods to 12 to 24 months which is unacceptable to lending institutions in most business loan situations.
Petersen International Underwriters has the perfect solution. 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 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.
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 policy is also the best solution for anyone needing disability insurance to satisfy business loan requirements.
For additional insurance solutions for your dentist clients and business prospects, call Petersen International at (800)345-8816.
Maryland is Now Open For Business
Petersen International Underwriters is pleased to announce that as of October 1, 2015, high-limit/excess disability insurance can now be filed in the state of Maryland. We are proud to have played a role in the successful passing of Maryland state legislative bill HB565 which is now in effect. The new law allows for the filing of disability insurance through Surplus Lines in the state of Maryland.
Some time ago, we came to recognize that a severe dilemma needed to be immediately addressed. Millions of Maryland residents have been unable to acquire appropriate levels of income protection insurance through traditional DI carriers. Physicians, attorneys, professional athletes, corporate executives…Read More
The U.S. Constitution, great apple pie and the New York City skyline are just a few iconic elements that make the United States an incredible place to live. Another noteworthy facet of American life is this country’s fanaticism with the game of football.
September marks the end of the annual sports drought that some of us feel through the spring and summer months (I apologize, but I find baseball a less-than-spectacular televised spectator sport). Tailgate parties, backyard barbecues and sports bars all find themselves weekly venues of celebration and inebriated merriment this time of year as millions of Americans cheer-on their favorite collegiate and professional football teams. Read More