When a dentist purchases a dental practice, oftentimes they must obtain financing through a bank. Before a bank will will issue the loan, they want to be secure that the borrower will be able to pay the loan back in the event the borrower becomes disabled.
The policy works to protect the balance of the loan by paying the bank a monthly amount for the duration of the loan. For example, suppose Dr. Dentist purchases a practice for $300,000. The loan requires they pay $3000/month for 7 years. The disability insurance policy would pay the bank that $3000/month. If Dr. Dentist was disabled in year 1, the policy would pay the bank the remaining 6 years.
For more information about obtaining disability insurance for dentists or for dentists purchasing a dental practice, contact Set for Life Insurance today!