It takes a lot of planning, dedication, time and money to make a medical practice work efficiently and profitably. But if a disability should strike, you might be unable to work for an extended period of time. Without the right disability insurance, everything you have worked so hard to achieve could be lost.
Take Care of Yourself and Your Business
When most people buy disability insurance, they are looking help to protect their income. But as an independent physician, you have much more to consider. You need to help protect both your income and the source of your income: your medical practice.
Business overhead expense insurance keeps your practice fully functioning, even when you aren’t. A disabling illness or injury can keep you out of the office for months. In the meantime, how will your staff, rent, utilities and business loans be paid? Even when you can’t keep going, the bills don’t stop.
A solo or small practice with just a few partners could quickly run into financial trouble and be at risk of closing. Business overhead expense insurance can help keep your office running smoothly – and even cover the cost of a locum tenens physician to care for your patients while you are out. That way, when you return to health, you will also have a healthy practice waiting for you.
Overhead can easily be overlooked when protecting against disability. Yet overhead could actually be the biggest contributor to your financial risk. According to MGMA*, some medical practices spend 60% or more of revenue on overhead. This means only 40% of revenue goes toward income. Disability insurance only helps protect your personal income; it is not designed to cover office overhead, which could represent the bigger risk for independent physicians.
Without business overhead expense insurance, a physician could endanger not only the health of their practice, but also their financial well-being. Savings, retirement accounts, your children’s college fund and home equity could quickly be drained in the struggle to cover office expenses.
Help Protect So Much With So Little
Business overhead expense insurance can be extremely valuable – yet is surprisingly affordable. For example, a 40-year old physician can buy a TMA Member Business Overhead Expense plan, issued by The Prudential Insurance Company of America (Prudential), with a $20,000 monthly disability benefit for $80 a month. That computes to $250 of benefit for every $1 of premium.
The TMA Member BOE plan is flexible and customized to your needs. The policy pays a monthly benefit based on your actual overhead costs, so now you can help protect your overhead without over insuring yourself.
Exclusive Benefits for TMA Members
The TMA Member BOE plan is only available to members of the Texas Medical Association. The plan was designed with the needs of independent physicians in mind and features seven benefits available to TMA members:
1. More Coverage. The TMA Member BOE plan now offers more insurance protection than ever before. Starting in 2018, locum tenens coverage will be an additional expense that can be covered. Available coverage limits have also been increased from $35,000 per month to $50,000 per month, giving you even more flexibility to adequately cover your monthly overhead expenses.
2. Longer Benefit Period. The TMA Member BOE plan provides up to 24 months of coverage. Many other plans only cover 12 months. This extra year of coverage would give you more time to recover and more time to determine if you wish to return to your practice or pursue other options.
3. Retroactive Benefits. After an insured physician has been disabled for 30 continuous days, the TMA Member BOE Plan pays the first benefit retroactively.
4. Waiver of Premium. During the time you are disabled, your coverage will be continued at no cost to you.
5. Partial Disability Coverage. If you suffer even a partial disability, you can still receive benefits to help offset the negative impact on your practice’s income.
6. Flexibility. Payments can be paid either to you or your practice.
7. Portability. If you decide to move out of state, you can continue your coverage as an affiliate TMA member until you reach age 75.
At TMA Insurance Trust, we are committed to the success of independent physicians. The TMA Member Business Overhead Expense Plan issued by The Prudential Insurance Company of America is an example of that commitment. Reach out to us and you’ll be put in touch with one of our licensed advisors with decades of experience serving Texas physicians. To find out more about business overhead expense insurance or to discuss any questions you may have, please call us at (800) 880-8181 or fill out the form below.
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.
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* http://www.physicianspractice.com/physician-compensation-survey/2016-physician-compensation-survey-results (Retrieved on 12/16/17)
TMA Member Business Overhead Expense Insurance coverage is issued by The Prudential Insurance Company of America, Newark, NJ. The Booklet-certificate contains all details, including any policy exclusions, limitations and restrictions, which may apply. CA COA # 1179, NAIC #68241. Contract Series 83500.