DI Policy with Only 3 Months Self-Employed??

[Beans]

Hey everyone...I have someone that needs a DI policy. He's been a dentist for 5 years. W2 for the majority, and only 3 months ago, he bought his own office. He does not have an existing client base. He is starting fresh as of 3 months ago. He needs a 5 year benefit period.

Question - Is there any company that will give him a 5 year benefit DI policy with only 3 months of Self-Employed history? The lowest I have found so far is 6 months, but he needs one right now. Any ideas?

Thanks!

 

[dgoldenz]

Yes, Guardian will based on 60% of his prior income. You can include a future increase option to cover the rest of the income when his income qualifies for it.

 

[Beans]

Yes, Guardian will based on 60% of his prior income. You can include a future increase option to cover the rest of the income when his income qualifies for it.

Awesome, thank you... And just to make sure.. Cause I'm BRAND new to insurance...

This is a requirement by the company that holds the mortgage on his new office. The company requires $3000 coverage to cover his mortgage which is $2950 / month.
1 - Am I just going to get him a regular policy on himself, or does the mortgage company have to "own" it? (payable to him, or the mortgage company?)

2 - Does the base amount have to be $3000, or can I do a base amount of $1700 with a $1400 SIS rider? In other words - If the mortgage company wants $3000 coverage, does that HAVE to be all in the base, or can it be combined with SIS to TOTAL coverage of $3000?

3 - And just to make sure - %60 total previous income from W2 statements for proof?

 

[dgoldenz]

I think you need some help on this one. A dentist opening his own practice has huge overhead expenses and should be insuring his income, not just what the bank wants. I'm surprised the other dentists he's worked with haven't drilled it into his head that he needs a comprehensive DI policy. A DI business overhead expense policy would also be a good idea so he can keep the practice open while disabled. Is he a general dentist or a specialist?

 

[BNTRS]

Not only is Guardian probably the perfect choice because they'll grant him coverage based on his past employed professional history. They have a product that is rather inexpensive that was designed for obligations like this, and he'll still be able to cover his own income with his own policy regardless of this deal.

There are a lot of details to work out, but dgoldenz is correct, if this guy is only doing this because the bank told him he had to, he's rolling some extremely risky dice.

 

[Sales71]

Call ur wholesale on the DI side they can give you the best option.