Risk Spotlight – Real Life Case


A 34-year-old general dentist was purchasing an established dental practice from his retiring mentor.  For the purchase, he sought out a new practice loan from a large bank.  As part of the many closing requirements of the lender, the borrower was instructed to acquire and assign disability insurance benefits to financially indemnify the loan repayment schedule.

Fortunately, the dentist employed an astute insurance agent who recognized the common missteps taken when assigning disability benefits in a loan situation. Borrowers frequently assign personal or business disability benefits previously and appropriately allocated to other important financial risks.  Instead of the potentially harmful reassignment of personal or business overhead disability benefits, the insurance agent guided the client to Petersen International and our Loan Indemnification disability program.

We were able to underwrite and issue loan indemnification disability insurance on the young dentist with a five-year, renewable policy term and monthly benefits of $11,500 per month with a 120-month benefit period after a 90-day elimination period.  We also included a residual disability rider, and unlike traditional BOE disability programs, we were able to indemnify the entire loan including principal and interest payments.

Petersen International has the right financial solutions for your business clients.

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