Hi to all of you out there I am sure by now your summer is in full swing. Many of you are preparing to begin your residencies as specialists in Anesthesia, Neurosurgery, Emergency Medicine, Radiology and the numerous other medical specialties and many of you are entering into private practice. By now you should have already invested in your most valuable asset and purchased the best disability coverage for your income protection. If you have not what are you waiting for? Ok enough with the lecture today I want to talk about Business Overhead Expense Disability Insurance. You are probably thinking ok but I am not going into my own practice right now or maybe never. That doesn’t mean you shouldn’t understand what it is. You never know what the future holds or if one of your colleagues will benefit from this information. Lets get started.
Business Overhead Expense Insurance is a type of disability coverage that enables you to maintain your business as a specialist in Radiology in the event that you become disabled. It covers the expenses for your Anesthesia practice until you are able to return or make alternate arrangements because you are permanently disabled.
What is covered?
- Most staff salaries (except you or other physicians)
- Accounting and Legal Fees
- Mortgage Interest or Rent
- Business Insurance Premiums
- Depreciation of Business owned Equipment
- Normal and Customary Fixed Expenses (utilities, cable, phone etc..)
- Professional Dues
- Property Taxes
Important definitions you should understand
- Waiting Period – shorter than personal coverage 30,60,90 days are available and should be chosen. 30 days is the most common
- Benefit Period – The period of time your coverage will pay. Traditionally 12 months is sufficient which allows adequate recovery time or sale and liquidation of the business. 18 and 24 months are also available.
- Renewable – Your plan should be non-cancelable and guaranteed renewable( as long as you pay your premiums)
- Future Increase Option (FI) – Provided you the insured the opportunity to purchase additional benefits in the future without a medical exam. However you must prove your financial insurability.
One more important feature is that your premiums are a tax deductible business expense.
Ok so that is about it in a nutshell. At this point you have enough information to understand the value of Business Overhead Expense Protection should you ever need it. For more detail and options available contact us at Income Protection Specialist and we will make sure you and your business are covered with the right policy and protection.
