Take the Case of…Dr. K.
Dr. K. is a 54-year-old dentist with a very large and successful California dental practice. She made a little over $600,000 per year which provided a very comfortable living for her spouse of 23 years and their three adolescent children. She was the primary earner of the household.
Dr. K. and her insurance agent sought out Petersen International in hopes of acquiring some disability insurance as well as exploring her other income and business protection options. She has a modest group long-term disability policy covering 60% of income up to $10,000 per month of taxable benefit. After a few years in private practice, she took it upon herself to acquire an individual disability policy that covers another $15,000 of monthly income. But after some estate planning and a thorough financial review, she and her agent found that her two layers of DI coverage were not sufficient as her income kept rising considerably as her practice flourished.
She also realized the $7,250 monthly business loan that covered her dental equipment costs was heavily underinsured by an overhead expense disability policy. She desperately was in need of additional coverage, and began to worry more about suddenly losing her ability to work and generate the same income level she had grown accustomed to.
Petersen International was able to provide Dr. K. with an excess personal DI layer of $12,500 per month of “own occupation” insurance as well as a separate loan indemnification disability policy covering 100% of her monthly loan repayment schedule.
In the seventh year of her coverage, Dr. K. developed a degenerative spine disorder that eventually crippled her. At this time, she is not able to practice dentistry and earn that substantial income to which her family and lifestyle requires. Fortunately, Dr. K. had the diligence to acquire large amounts of disability insurance and the benefits are being used to maintain household expenses, payoff loan requirements as well as limit the measurable medical costs that aren’t covered by her health insurance.
Contact our disability insurance department at (800)345-8816 to find out more about financially safeguarding your clients and their businesses.