If you are a self employed doctor or in a partnership type of arrangement with 4 or less members you bet you do!
Let’s imagine the typical pie chart. With 4 in the practice each partner is responsible for 1/4 of the expenses. If you are disabled and cannot pay your portion of expenses then what?
- Healthy partners are now paying 1/3rd of the expenses vs. 1/4th.
- Secondly, their take home pay just decrease as a result of this.
- Thirdly, the relationship starts to breakdown.
When a partner is unable to pay his portion of the overhead the relationship between all involved is stressed and sometimes dissolves. Business Overhead Protection not only picks up the bills of the disabled but allows the continuity of the relationship to go on undiminished. Also given that the premiums are so much less than traditional Disability Insurance and are tax deductible; it is only wise to have this protection in your overall portfolio.
If you are a Sole Proprietor there is no question that you need it! Protecting your practice with a BOE Policy can save you from financial disaster. Without BOE the financial liabilities of the practice will follow you home. This will cause undue tension within the home and often leads to bankruptcy. By purchasing a plan you build a wall between your business finances and personal finances should a disability occur.
Like other types of Disability Income Protection, Business Overhead Expense Disability Insurance is best purchased while you are young and healthy. This is when rates are the most economical.
