Funding Your Practice Purchase
Some ways of saving money are far better than others ─ and that applies to saving for the down payment on a dental practice purchase. Keeping your savings in a bank account that earns a low interest rate means your money will grow very slowly. On the other hand, aggressively investing those savings means you’re running the risk of losing money.
Fortunately, your investment advisor at CDSPI Advisory Services can help you invest those savings in a way that offers the potential to deliver higher returns compared to a bank account ─ while at the same time helping you manage risk.
Once you’ve saved adequate funds for the down payment, you’ll likely need to borrow the rest. If this is the case for you, you’ll discover that most lenders will insist that you take out a life insurance policy before approving the loan. The lender will want an interest in the policy’s proceeds to cover any outstanding balance should you die before the loan is repaid.
However, don’t assume that the lender’s life insurance product is your best option. Your insurance advisor can help you obtain life coverage that could be a much better fit for you ─ in terms of both value and flexibility.
Protecting Your New Practice with the Right Insurance
Before you open the doors to your new practice, it’s crucial to have the right insurance plans in place. Happily, your insurance advisor at CDSPI Advisory Services can help ensure you’re prepared.
For More Information:
For example, your insurance advisor at CDSPI Advisory Services can assist you with:
- Obtaining the right types and levels of office insurance protection
- Ensuring your package of office insurance takes effect on the day your sale closes/your lease takes effect
- Examining your professional needs for life insurance ─ such as using life coverage to fund a “buy/sell provision” (if you’re practising with a partner) or insuring the life a “key person” who works in your practice
- Making sure you're adequately protected with insurance if you own the building where your practice is located