HomeLearnDisabled and On the Hook: Physician Business Overhead Protection
Keith Mangrum – Senior Regional Vice President of Sales, MGIS

Most Physicians are aware of the possibility of becoming disabled sometime during their working life, and many medical professionals purchase individual disability coverage early in their career to help protect themselves and their family.  This IDI coverage may be adequate for a younger doctor; however, as time passes and income increases, so does the need for additional income protection.  This increased need is especially true if a physician becomes a partner in a practice – since a disabled partner physician may be responsible for ALL his or her overhead expenses even while disabled and not working!

Few practices can readily absorb the financial loss of a key physician, and the non-disabled partner physicians may refuse to bear the additional cost burden when a partner becomes disabled. To alleviate this concern, some practices purchase Business Overhead Expense (BOE) policies, but these policies can be expensive, and the underwriting process often proves to be exhausting, because most require medical underwriting (medical exam of the potential insured).

An ideal alternative to going without, or to purchasing expensive BOE coverage, is to add the MGIS/Sun Life Business Protection Benefit (BPB) optional rider to our base Physician Group LTD plan. The BPB rider is guarantee issue (no medical underwriting whatsoever), and is typically less expensive than comparable BOE policies.  It provides payments to the practice in the event of a physician’s disability, helping to offset the loss of revenue, and reducing the overhead expense burden a disabled physician might feel.  The BPB rider can provide up to $10,000 a month in benefits to the practice, and is payable for up to 12 or 24 months, depending on coverage options selected.  A Partial BPB is payable if the physician is disabled and working.

Group disability insurance policies are underwritten by Sun Life Assurance Company of Canada (Wellesley Hills, MA) in all states, except New York, under Policy Form Series 93P-LH, 07P-LH-PT/07C-LH-PT, 12-STDPort-C-01, 12-GP-01, and 12-DI-C-01. In New York, group life and disability insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Windsor, CT) under Policy Form Series 13-GP-LH-01, 13-LTD-C-01-MGIS, 13-STD-C-01-MGIS, 13-ADD-C-01-MGIS, 13-GP-LF-01, 13-LF-C-01-MGIS, 12-GPPort-01, 13-LFPort-C-01, 13-ADDPort-C-01 and 12-STDPort-C-01.

The disability policies provide disability income insurance only. They do NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Insurance Department.

Administration for physician products is provided by Medical Group Insurance Services, Inc. (MGIS), in all states, except as follows: in CA by MGIS Insurance Agency, Inc.; in NY by MGIS Insurance Agency. Product offerings may not be available in all states and may vary depending on state laws and regulations.

Producer use only.

© 2015 Sun Life Financial and the globe symbol are registered trademarks of Sun Life Assurance Company of Canada. Visit us at www.sunlife.com/us.

GGEL-PHY-490                      SLPC 26811 10/15 (exp. 10/16)

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