Income protection insurance for dentists is designed to help protect them from the financial strains of being unable to work and produce an income due to an accident, injury, or illness.
This type of insurance protection is very easy to understand at a high level.
If the dentists experience a qualifying condition that has left them unable to work, they will receive a monthly benefit payment meant to supplement the income they are not receiving.
The monthly benefits the policyholder receives when they have a qualifying event are usually equal to a percentage of their gross earnings from when they were working.
Whether the policy seeker is employed by a dental office or a private dentist, it is worth investigating their financial situation should they become unable to work and how an income protection policy may benefit them by helping cover expenses like bills, personal loans, and medical care.
Knowing if You Need Income Protection
When considering an income protection policy, two areas should be considered: whether it is possible to survive financially with a total loss of income, and if so, how long it can be sustained and how likely it is that an experience like this will happen.
Click To Compare QuotesDentists can easily find an answer to the first part of this question based on their personal financial situation and their monthly expenses, in addition to the possibility of using state aid should it be available.
For those currently employed by the NHS, the maximum sick pay received after five years of service would only be 12 months—full pay for the first six months and partial pay for the remaining six months.
Those with a private scheme may find that private sick pay benefits only pay out for a short time.
Relying on this type of aid in the event of income loss is not the best way to protect one’s financial future and meet one’s responsibilities.
In the event there is a loss of income, it may be possible for creditors to be sympathetic to the situation, but likely only for a short time.
They will still move relatively quickly to have legal repossessions occur to reclaim the assets to cover the amount of money owed.
In many cases, important items such as vehicles, personal belongings, and even homes are taken away and sold to recoup the money owed on personal and bank loans.
How Does Income Protection for Dentists Work?
Obtaining coverage for an income protection policy is relatively easy. First, decide the desired level of protection and duration of cover that meets the needs of the financial assessment.
Should something happen, such as a serious injury or illness that makes the policyholder unable to work, they will submit a request for a claim that outlines the details of the given circumstances with supporting information, such as medical reports.
Click To Compare QuotesShould there be enough personal savings to cover expenses for some time, the policy seeker may set a deferred period for when the policy benefits will begin.
After that period has ended, the beneficiary will receive monthly payouts of their benefit amount for the duration the policy outlines.
These benefits will continue until one of these events occurs:
- The policyholder recovers enough to return to work.
- The period the policy is outlined for expires (this is especially true for short-term policies)
- The policyholder reaches retirement age
Information on Specialist Income Protection for Dentists
Depending on the nature of the occupation the policyholder has, either with a private employer or the NHS, he or she may have access to sick pay benefits through the employer.
Sometimes, it is possible to link a personal income protection policy with the form of sick pay the employer offers.
For example, suppose the employer pays the salary for six months. In that case, the policyholder may choose a six-month deferred period for the personal income protection policy so the two benefits do not overlap and the financial support needed can be extended.
Securing Own Occupation Coverage
When looking for income protection policies, dentists should choose their own occupation definition when applying, given the skill level needed for this occupation.
Not all income protection insurance providers offer their own occupation coverage, so it is very important to review the terms of all policies carefully.
Choosing an occupation definition means the insurer will pay out benefits if the policyholder cannot perform his or her specific job.
Click To Compare QuotesFewer occupation definitions are available, including “any” and “suited occupation.” By choosing any occupation, the insurance company will only pay out benefits if the policyholder cannot work any type of job, not just dentistry.
The suited occupation definition means the insurance company will only pay out if the policyholder is unable to perform a job similar to the current occupation.
Own occupation, the recommended definition for dentists, means the policyholder will receive benefits if he or she cannot work in his or her specific occupation—dentistry.
What Options are Available for Income Protection Insurance?
When choosing an income protection policy, policyseekers should consider some of the following options before making a final decision:
- The amount of income protection that is needed to meet minimum living expenses, which is typically between 50 and 65 percent of gross earnings
- How long will the policy be needed to cover expenses if a claim is made? Usually, between 24 months and up to retirement.
- How long of a deferred period is desired, which can range anywhere between one and 12 months
- It is generally recommended that the policy be indexed and linked—which means the benefits of the policy payout will increase in line with inflation—especially for those opting for a longer-term policy. However, it is essential to note that doing this may increase the cost of monthly premiums for the policy.
Need More Information?
Our company understands there may be several questions related to income protection insurance for dentists.
We pride ourselves on being independent advisors, which means we are not associated with any one insurance provider.
Thus, we are well-positioned to offer clients an unbiased view and advice on different income insurance policies that may be available to them.