Dentist Disability Insurance

Most dentists have insurance coverage on their homes, autos, etc. Many have not realized that the value of their future earnings may far exceed the value of their tangible assets. If their future earnings cease because of an accident or illness, the loss of income could present serious financial problems. Dentist disability insurance policies replace a portion of lost income due to disability during one’s working years.

At Doctor Disability, dentist disability insurance is our specialty. Our agents have been working with members of the dental community for over 13 years. We have a unique understanding of dentists’ needs, schedules, and preferences. We will work with you to design a disability plan specifically tailored to your unique situation.

Occupational Specific Benefits

As a dentist, one of the most important policy features to have in your disability contract is an own-occupation definition of disability. Simply stated, this means that if you are unable to work in your specialty due to an injury or illness, the policy will pay you a benefit even if you choose to work in another occupation. For example, if you are injured and can no longer practice as an orthodontist (maybe you have eye problems), an own-occupation policy will still pay you a benefit even if you can earn an income in another specialty or occupation.

This definition differs greatly from many less expensive or group plans, which require that you must not only be disabled from your occupation, but also UNABLE to work in any gainful occupation. If you do not have an own-occupation policy, having the ABILITY to flip burgers could preclude you from receiving a benefit.

Occupational Classification

Insurance companies have different rates and policy features for different occupational classes. Your dental specialty will determine your occupational class.

Group Disability Benefits

Many employers offer group dentist disability insurance. Here are some things to consider:

• Group plans can be changed or canceled at any time. This could leave you without coverage when you need it most.
• Most group plans cannot be taken with you if you switch employers.
• Most group benefits are taxable and do not cover bonuses, which leaves you with a lower net after-tax benefit.
• Many group dentist disability plans have a restrictive definition of disability. These plans require you to be COMPLETELY disabled before they pay a benefit. In other words, if you have the ability to do any type of work, benefits may not be payable.
• Benefits may be offset by income received by workers comp, social security, and other income sources.
• Most group benefits do not keep pace with inflation.
• Many group plans do not cover a partial disability (which is the most common type of disability).

Business Overhead Expense Disability Policy

If you own your own practice, you may want to consider a business overhead expense policy. If you become disabled, this policy provides funds to help cover ongoing business expenses such as rent and employee salaries (in addition to many other expenses) to keep your practice open during the period of disability. Few dental practices can survive if the dentist is not generating new revenue. In a very short time, the practice will either shut down or have to be sold. A dentist disability insurance business overhead expense policy allows you to cover expenses while disabled and return to your existing practice when able.

Alternative Income Options If You Are Disabled

Social Security

• Many people mistakenly believe Social Security Disability Insurance will replace their income. In reality, it is very difficult to qualify for social security benefits because the disability must prevent you from doing any kind of work - not just your usual job. The definition of disability for social security states that one must be completely disabled with no hope of recovery for a period of at least one year, or have a disability expected to end in death.

Worker's Compensation

• Worker's compensation only covers job-related sickness or injury. These benefits are also limited in other aspects.

Savings, Family, or a Bank Loan

• If you saved 10 percent of your income per year for 10 years, a one-year disability would completely wipe out those savings. With your savings gone, your other assets would begin to dwindle. Whom would you turn to for financial assistance? Would family or friends be willing to help you out, especially after your savings depleted so rapidly? Even a bank would not want to give a loan to a disabled person with no income or guaranteed prospect of being able to repay.

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