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A row of medical files and supplies on a shelf, emphasizing the need for business overhead expense insurance.

Business Overhead Expense Insurance For Medical Students

Written for Medical Students, Residents & Fellows

When you’re disabled, your business expenses don’t stop.

When you cannot work due to an illness or injury, your disability insurance helps replace your income but does not help with the expenses of running your practice. What about your critical illness insurance? Even if you qualify for benefits, you would likely use them for personal expenses.

The solution is business overhead expense insurance for medical students, residents and fellows.

While we are independent and offer products from different insurers, we recommend RBC Insurance because of the special Medical Student Offer.

Keep your practice viable while you recover from a disability

Your practice could have ongoing expenses such as rent and salaries that continue while you’re disabled. How do you pay the bills? Instead of dipping into your savings or adding debt, use business overhead expense insurance for low-cost peace of mind. Through the RBC Medical Student Offer, you get a healthy discount.

Once you have your disability insurance, you can apply for business overhead expense insurance:

  • After 24 months, or
  • During your first year in practice

Your coverage is guaranteed until age 65. As long as you pay your level premiums on time, RBC Insurance:

  • Can’t change your plan
  • Can’t increase your premiums
  • Can’t cancel your coverage

Your protection is conditionally renewable after age 65 if you’re working and responsible for the expenses of a business. However, the benefit period and premiums are no longer guaranteed. After age 75, the benefits are reduced by 50%.


You get a range of features:

  • Benefit: if you’re totally disabled, get a minimum of $450 per month to help cover regular business expenses (up to a maximum you select when you apply). You can purchase up to $10,000 of lifetime payout under the Medical Student Offer. Proof of expenses is required to claim more than the minimum amount. You cannot claim more than your actual expenses.
    • If you’re partially disabled, you get up to 50% of the maximum payout you selected for up to three months
    • If expenses in a given month don’t warrant a maximum monthly payout, the unclaimed portion can be carried forward for use in a month where expenses exceed the maximum payment
  • Discount: you qualify for up to 15% off the standard premium depending on where you are in your medical studies
  • Waiting period: choose 15, 30, 60 or 90 days
  • Benefit period: choose 15 or 24 months
    • If you are totally disabled for the entire benefit period and you haven’t received benefits up to the lifetime maximum (due to not having enough expenses), the benefit period will be extended until that maximum has been paid out, provided you remain totally disabled
  • Premiums waived during disability: After 90 days of disability, your premiums are waived while you remain disabled. You also receive a refund of premiums paid during those 90 days

Disability definitions are similar to those in your disability insurance. If you are receiving disability benefits, you generally qualify to receive business overhead expense benefits too.

Get personalized information about business overhead expense insurance

Would you like to understand your options for business overhead insurance and get answers to your questions?

To get help, select a convenient date/time for a video meeting. Afterwards, decide whether coverage is right for you. When you are ready, we complete your insurance e-application together. We then monitor the progress of your application, keep you updated, and guide you through the policy delivery process.

Tags: communities, disability insurance, disability risk, fellows, medical students, residents, fellows, residents

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