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You're Hurt or Sick - What Happens to Your Practice?

September 30, 2021
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As a practice owner, you must have cash to pay your personal and business expenses in the event you are disabled from an accident or serious illness. Could your business and personal lifestyle survive if you were unable to generate income for a year? Two years? Longer? Would there be a practice left? Would you have to start over and build back the income to support you? If you can locate a temporary replacement, how will you pay them?

A tax-deductible professional overhead expense insurance policy helps ensure a practice owner can protect their business if they cannot work due to disability. The contract pays for the costs of practice overhead items – cost of a replacement doctor, employee salaries, utilities, phone bills, accounting, billing, legal and collection fees, janitorial, security and maintenance services, professional/association dues, postage, real estate taxes, malpractice insurance, interest payments on certain loans. When a disabling injury or prolonged illness strike, this contract protects your practice and protects you.

If the owner of a closely held practice needs to activate their personal disability insurance, this plan does may not pay until 90, 120, or 180 days! This is a long time to ‘self- insure’ and can exhaust any savings.Most medical professionals would find it financially difficult to maintain personal and all practice expenses during a lengthy interruption of their cash flow. The overhead expense contract adds to personal disability insurance so a self-employed physician/practice owner can maintain their lifestyle and return or sell their valuable practice after an unexpected injury or illness.

Your practice provides your lifestyle. A professional overhead expense contact designed by the experienced team at Medicus Wealth Consultants will help maintain your business value, credit ratings, reduce staff turnover, serve as “interruption” protection if an owner becomes too sick or injured to work. Our professionals can design these programs with multi-life discounts, and premiums are tax-deductible as a necessary business expense. Let us design a plan for you and your practice so you can get back to what matters to you most.

The foregoing information was prepared from sources believed to be reliable but is not guaranteed as to accuracy and is not a complete summary or statement of all available data. Please consult your tax advisor regarding your specific situation prior to implementing any of the strategies discussed.

Registered Representative of, and Securities and Investment Advisory Services offered through Hornor, Townsend, and Kent, LLC (HTK). Registered Investment Adviser, Member of FINRA/SIPC. 6000 Fairview Dr, Suite 1425, Charlotte, NC 28210 704-362-6787 Medicus Wealth Consultants, LLC is unaffiliated with HTK. Medicus Wealth Consultants and HTK do not provide tax or legal advice.

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