Why Personal Disability Insurance for Dentists is Important

Key takeaways:

• Not all disability insurance policies work well for dental professionals.
• Here are six elements dentists need to look for when choosing personal disability insurance.

As a dentist, your ability to work is your livelihood. If you suffer an injury or illness that prevents you from practicing, the financial implications can be devastating. While many professionals recognize the importance of health insurance, a personal disability insurance policy is just as critical for long-term financial security.

Why dentists need a disability insurance policy: Income is directly tied to the ability to perform

Dentists rely heavily on their physical health to provide care for their patients. The work often requires performing intricate and repetitive tasks, such as surgeries, fillings, and other delicate procedures, which can strain muscles, joints, and the nervous system. Additionally, dentists risk exposure to infections or illnesses that could lead to temporary or permanent disability.

A disability policy provides financial support when a dentist is unable to work due to illness or injury. It replaces a portion of the income lost, which is crucial for paying personal and business expenses during periods of incapacity.

Without this insurance, a dentist may be forced to deplete savings or take on significant debt to cover living expenses, particularly if recovery takes several months. Without adequate disability insurance, the loss of income could have severe long-term effects on a dentist’s financial stability and ability to practice again.

Six key features every disability policy for dentists should have

When selecting a disability policy, carefully review the plan to ensure it includes the following essential elements:

1. True own occupation

This feature is perhaps the most critical for dentists. The "true own occupation" provision ensures that if you become unable to perform the specific duties of your occupation due to illness or injury, you can still receive full disability benefits, even if you are able to work in another occupation.

For example, if you suffer from a debilitating hand injury that prevents you from performing dental procedures and you end up working in teaching, consulting, or administrative work, a true own occupation policy will allow you to continue receiving disability benefits. Without this feature, many policies only provide benefits if you are unable to work at all.

2. Student loan

Many new dentists face significant student loan debt. A specialized student loan rider within a disability policy can provide financial relief in the event of a disability. If you are unable to work due to a covered illness or injury, this feature helps cover your student loan payments, reducing the financial stress during your recovery period.

This protection can be especially important in the early stages of a dentist’s career when the debt-to-income ratio is high and defaulting on student loans is a real risk.

3. Cost-of-living adjustment (COLA)

Inflation can significantly erode the value of disability benefits over time, especially if you become disabled at a young age and require long-term support. The COLA feature ensures your disability benefits increase annually to keep up with the rising cost of living.

For example, if your initial monthly benefit is $5,000, a COLA rider could increase that amount by a fixed percentage each year, helping to maintain your purchasing power and standard of living throughout the course of your disability.

4. Residual or partial disability

A residual or partial disability rider provides benefits if you can work part-time or in a reduced capacity due to illness or injury. Many disabilities don’t result in a complete inability to work but instead cause a reduction in income due to a dentist's decreased ability to perform procedures.

With this feature, a dentist can still receive partial disability benefits that cover the difference between their pre-disability income and the income they are able to earn while working at reduced capacity. This provision can be a lifeline if you are recovering from an illness or injury and gradually returning to work.

5. Catastrophic disability

A catastrophic disability rider provides additional benefits in the event of a severe disability that leaves a dentist unable to perform basic activities of daily living or in need of long-term care. This rider offers enhanced benefits if the disability is catastrophic in nature, covering long-term care costs, additional medical expenses, or providing a larger income replacement. This feature ensures that any dentist unable to perform professional or personal activities has the financial resources to maintain a decent quality of life.

6. Future increase option

As your career progresses, your income and financial obligations will likely increase. A disability policy that allows you to increase your coverage over time without the need for medical underwriting means you won't have to undergo a medical exam or health questionnaire to increase your coverage.

This feature, sometimes referred to as a "future increase option," allows dentists to adjust their coverage as their income grows or as their financial situation changes, without the risk of being denied due to a pre-existing condition or developing health issues. Having the flexibility to increase your disability coverage ensures you are adequately protected at every stage of your career.

Protecting your financial future

A personal disability insurance policy is not just a safety net — it is an essential tool for safeguarding your financial future when you are unable to work. By understanding the nuances of disability insurance for dentists, including the need for specialized policy riders, you can confidently choose the best option for addressing the financial obligations of student loans or business expenses during periods of disability.

With the right disability coverage in place, you can focus on your practice and your patients, knowing that your income and financial well-being are protected, no matter what challenges may arise.

Want to learn more?

Wherever you are in your dental career, Risk Strategies provides expert guidance and specialized insurance and risk management solutions tailored for dental professionals.

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Connect with the Risk Strategies Dental Insurance team at dental@risk-strategies.com.