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Tom and Janice McCabe are dentists in their late 30s with a practice in a rural community. The parents of two young girls, they handle a full schedule of appointments, with a growing patient list.
Although they both have DisabilityGuard™ Insurance to replace lost income in the event of an unexpected illness or injury, they didn’t bother with Office Overhead Expense (OOE) Insurance to cover day-to-day business expenses. They assumed that if one were unable to practise, the other would manage both their patient loads.
Unfortunately, Tom suffered a serious injury in a cycling collision, requiring knee reconstruction surgery, leaving him unable to practice for several months.
The revenue from Janice’s patients and a hygienist was not enough to cover their overhead. As a busy practice in a leased space, with three operatories and five staff members, their eligible office overhead was $29,000 per month, so they had to undertake significant debt to cover Tom’s share of the ongoing expenses.
The Easy Solution
If they had taken OOE, it would have provided benefits for Tom’s share of the rent, staff salaries, business insurance, property taxes, utilities and a host of other costs associated with running a business.
Office Overhead Expense coverage of up to $40,000 per month is available to dentists under age 55, and dentists ages 55-64 are eligible to apply for up to $20,000 per month coverage.
Future Insurance Guarantee (FIG)* – This important option lets you increase your Office Overhead Expense coverage by 25%, without evidence of good health, at specific points in your life, such as an age milestone, marriage, or arrival of a child.
Own Occupation – If a total or residual disability prevents you from continuing to practise, this option reimburses you for eligible office expenses even if you are able to earn income from a new occupation.
* You need to be actively at work, and not on claim or satisfying an elimination period, to exercise this option.
Contact an Insurance Advisor from CDSPI Advisory Services Inc. to determine the right level of OOE coverage for your practice.