Purchasing a Dental Practice
As you look to purchasing an existing business or starting a new practice, banks and other lenders will require that at least one of the following is collaterally assigned to them in order to protect their interest if you should become disabled or die:
- Loan Protection Insurance
- Term Life Insurance
- Disability Income Insurance
- Overhead Expense Insurance
You will also be required to obtain hazard insurance (NORDIC Business Owners coverage).
Because WDIA works with dentists (and only dentists), we are very familiar with this process and can help ease some of the stress that accompanies this exciting time. WDIA has working relationships with the banks and lenders that most dentists are using, as well as the practice transition teams they are utilizing.
Our most practical advice is to start early.
This means at least two months before you need to receive money from your lender. Insurance underwriting takes time, and lenders often will not disperse money until the insurance policies are in place and collateral assignment forms have been signed.
We believe that personal disability insurance should never be used as a collateral assignment. Would you hand your entire paycheck over to a bank every month? If a lender tells you that you must assign a disability insurance policy loan, call us - we have an inexpensive solution.
It is our goal to get you the best coverage at the best cost. Keep in mind that it is better to start earlier and younger, and the benefits far outweigh the cost. Disability and death can happen to anybody at any time. Will you be prepared?