As a dentist, you are dedicated to your work and your career and your job and your ability to work in a highly specialised field are your primary assets. The training and experience you have acquired over the years have given you the kind of lifestyle you might be enjoying today. However, the present should not be the only main concern. It should also include planning the course of your finances in the future.

Some of those thoughts might veer towards pension, mortgage, and selling your practice when it is time for you to retire. Sadly, one important thing that is often overlooked not only by dentists, but by most of the people in the workforce, is income protection which also goes by the name of permanent health insurance or income replacement cover.

However, it may be understandable if most dentists just let it pass, dismiss the thought, or even not consider this if they have sufficient assets to live on whatever happens. But as meticulous a dentist is, there is nothing left to chance, much less your future.

Even if your income is sufficient, there are still many things that might happen unexpectedly – things that could impact your lifestyle and even your family. In order to prepare for these things, some sort of a security blanket is what you need. That security could be income protection.

Income Protection Explained

Income protection, in general, has the function of providing someone a steady monthly income in the event of a severe illness or injury. However, income protection for dentists might have some or additional differences compared to a general income protection. There are a few key factors that you need to put into consideration.

• Occupation. Insurance companies rate the risks of each occupation. This normally falls into three categories, especially if you are making a claim, namely: own occupation, suited by training or education, and any occupation. Under own occupation, the risk is assessed through your inability to work. Suited by training or education only includes not being able to do research works and other things specified by the provider. In ‘any occupation’, you have to have severe illness or total disability in order to file a claim.
• Premiums. There are basically 2 kinds of income protection premiums – reviewable and guaranteed. Reviewable premium is initially cheaper than a guaranteed premium. However, guaranteed premium maintains the same amount of premium every month until the maturity of the policy.
• Restrictions. Many a number of insurance providers include some restrictions in the policy. You could usually see them in fine print when you read the terms and conditions regarding the policy. The usual restrictions may have something to do with certain health conditions, or if the person applying for policy is engaged in extreme sports which has a lot of risk exposure. It should be also noted that people who smoke pay a much higher premium than those who do not smoke.
• Provider. There are as many insurance policy providers as the policies they offer. The trick is to find the right provider who would be able to provide the best plan for you at a competitive price. This can be achieved by employing the help of a financial adviser. A financial adviser can give you important insights and devise a good financial strategy that would give you lots of benefits.

Extra Benefits for Income Protection for Dentists

If you are considering getting income protection, you should check and ensure that the policy covers the following:

• Cover for HIV, Blood borne disease, and Needle stick. As a dentist, it is mandated that you have to stop working when you contract HIV, Hepatitis B or C even if you still have the ability to work. Your cover should include benefits paid in the event of the following diseases. It should also include needle stick coverage that will pay a lump sum in the event of contracting HIV, Hepatitis B or C.
• Cover for Mental Illness. It has been noted in recent studies that due to the high level of stress, those who are in the medical profession are 20% more likely to stop working due to mental illness.
• Worldwide Cover. This is important if you are planning to move abroad or retire at an overseas home.
• Inflation Cover. This coverage allows your policy to increase in value with time. The increase is based on the Retail Prices Index or a set percentage. It should be noted, though, that adding this in your coverage means an increase on your monthly premium.
• Term of the Coverage. You could opt for a cover that would extend until your retirement age which is around 60 to 65.
• Deferred Period. Most dentists opt for a 1 day deferred period. However, you are entitled to a sick pay if you are working in an NHS hospital system, so you might opt for a 26 to 52 weeks of deferred period.
• Amount of the Coverage. Generally, income protection covers 75% of your gross annual income. However, some providers only cover 50% to 60% of income protection for dentists. It should also be noted that if you are self-employed, your net profit receives the coverage and not your gross income.

Having looked at the benefit of income protection, it is then a logical decision not to leave anything to chance. In order to have a better overview about certain policies, you could get a free quote and from there; make a decision that could change your future.