If your medical or dental practice comes to a grinding halt because an injury or illness puts you out of action, what are you going to do? This is not a hypothetical question. Many leading physicians and dentists have suffered a similar fate because you never know when an accident or illness can prevent you from attending the office or managing your medical practice.
Even when you are unable to work for an extended period because of a severe illness or injury, your overhead expenses will continue. You will have to pay rent, payroll, energy bills, and meet other expenses even when your income drops to zero. This is where your insurance plan can come to your rescue.
Personal disability insurance is designed to protect the personal income of a physician. It’s a must-have plan for the financial security of your family. But can it protect your medical practice? The answer is no. For that, you must invest in a different plan.
High Limits BOE Disability Insurance
High Limits Business Overhead Expense Disability Insurance from one of the leading disability insurance services is a policy that’s apt for physicians and dentists with a successful practice. The plan covers ongoing operational expenses and saves you from having to use your personal assets to pay for the running of your business when you are unable to work. The plan comes with a substantial monthly benefit that can keep your medical practice afloat so that you can recover in peace.
High Limits Business Overhead Expense (BOE) Disability Insurance covers expenses related to rent and mortgage payments, salaries and benefits of employees, utility bills, property taxes, legal and professional fees and duties, maintenance, and janitorial services, office supplies, and other mandatory monthly expenses. Some disability companies even provide for the salary of a temporary employee hired to carry out the duties of the disabled person.
While there are a few differences between high-limits business overhead expense disability insurance, and personal disability income insurance, a few of them stand apart. These include benefits period, maximum benefits, and taxation.
BOE insurance policies generally offer short benefit periods not exceeding two years. That’s because this insurance is not for protecting your ability to generate income. BOE insurance allows you to keep your practice open. You can pay for the various expenses involved until you recover.
If you have a long-term disability, the BOE insurance policy gives you two years to make a business decision. If the recovery is taking more time, you can take a call on whether to continue running your practice or shut down without worrying about accumulating business expenses.
Your personal disability insurance will pay you a fixed monthly benefit as defined in the policy. BOE insurance policy offers a maximum monthly benefit but you need not use them all. Just pay the actual overhead expenses if they are less than the maximum benefit. In some plans, the balance benefit can be used to increase future monthly maximums. It can be also used to extend the benefit period.
BOE insurance policy provides relief in taxes as the premiums are tax-deductible under business expenses.
Choose the services of a reliable disability insurance broker to understand the BOE insurance policy better before you decide on a plan.