Dentists are not only practitioners, but are business owners as well. As such, they need to protect themselves in several ways when it comes to disability insurance.
Individual disability policies are designed to protect their personal income or take home pay. Premiums are paid with after tax dollars and the benefits are payable tax free at the time of claim.
As business owners, it is important for dentists to also consider protecting their overhead expenses. These include payroll, rent, equipment and other necessities to carry on the business. Business overhead expense premiums may be deducted as a business expense. Even though this creates a taxable benefit, the benefits payable are for deductible expenses.
Business overhead expense policies typically have a waiting or elimination period of 30 days and pay anywhere from 1 year to 18 months.
If dentists are in a partnership, sometimes they need to provide both life and disability insurance to fund a buy sell agreement.
Dentists who purchase a practice may purchase a policy to protect their business loan. The policy is designed to pay the bank the remainder of the loan at the time of claim.
For more information about disability insurance for dentists, contact Set for Life Insurance today!