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Dentists are considered among the highest risk occupations based on claims history. It is critical for a dentist to protect himself or herself against their high-risk occupation while still maintaining a quality policy.
Disability insurance has gone through drastic changes in the medical and dental community. Ten years ago a dentist could easily obtain an own-occupation disability insurance policy for very high monthly benefits.
Today, there still a few companies who will offer an own-occupation disability insurance policy to a dentist. Monthly benefit amounts are now typically available to $15,000/month.
Own-occupation is one of the most important disability policy provisions for a dentist. It means that the policy will pay you a benefit if you cannot perform the substantial and material duties of your occupation (dentistry or dental specialty) EVEN IF you choose to earn income in another occupation. For example, if you hurt your hand and can't practice dentistry, the policy will pay you a benefit even if you decide to teach or pursue another occupation. The benefit will not be offset by any income you bring in from the other specialty.
KF Financial is now able to offer lifetime own-occupation insurance to dentists (only to age 65 in California). Ask us about this important aspect of your disability insurance coverage.
- Your most valuable asset is your ability to bring in an income. For dentists, your future income is your payoff for all of your years of training, hard work and accumulated debt.
- The dentist's job is very physically demanding. Consequently, your risk of becoming disabled in some capacity is among the highest – over any other professional.
- Your student loans do not go away in the event you become disabled.
- You may be eligible for a group rate or discounts. This requires two or more employees at the same employer to purchase a policy. For more information about discounts for dentists, please contact KF Financial.
If you work for a large group or practice, you may be offered a group policy. Usually you cannot opt out of taking the policy. Group policies usually offer a limited monthly benefit (60% of your income to a maximum amount). Because group policies can't discriminate who they are offering coverage to, they often lack the important provisions of a personal policy.
- Your group policy may require you to be totally disabled and not able to work in any capacity before you can receive any benefit.
- The group policy benefit is taxable income to you if the employer is paying the premiums.
- Your employer may be able to cancel your policy at any time.
- Even if you have a group policy, it is still important to consider supplementing with an individual policy.
- Your individual policy is portable and you may take it with you if/when you leave your employer.
- The policy definitions on an individual policy are usually superior (own-occupation, inflation protection).
- If you are only partially disabled, your group policy may not pay you.
- Having an individual policy protects your insurability by purchasing increase options. If your health changes, you may still purchase more coverage in the future based only on financial underwriting.
If you are concerned about paying for your disability insurance during residency, there are several things we can do to reduce your premium as much as possible.
- Some companies allow a "graded" or increasing premium. This is initially less expensive and your premium will increase each year. If you wish to lock it in at a later time, you may do so on any policy anniversary.
- You may choose to simply supplement what your group policy already offers and load up your policy with increase options. This will allow you to keep your premium low during residency and still reserve the right to increase it in the future without any medical underwriting.
Dental residents: Up to $2500/month benefit without any financial underwriting.
First year dentists: Up to $3500/month benefit without any financial underwriting.
As a first year dentist, you have a couple options when it comes to disability insurance. You can take the first year dentist amount of $3500 a month regardless of your income. Or, you may purchase a larger amount only using financial underwriting.
If you own or are purchasing your dental practice, you should consider disability insurance to cover your business expenses.
These policies include Professional Overhead Expense insurance, Disability Buyout, and Reducing Term Disability Insurance.
For more information about these policies, check the Business Owners page.
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