Why It's Important
Why You Need it & How it works
1. Personal Income Protection:
Unlike many other professions dentistry involves physical labor as well as having a high education. With the average student loan debt out of dental school being over $350,000 protecting your income is extremely crucial to the financial plan. Carrying personal disability ensures that if you could not work as a dentist that student loan payments would be covered, rent/mortgage payments are paid and a normal lifestyle can be maintained. In a perfect world one would want as much disability insurance as possible but like everything else it is important to have in moderation. With disability insurance being tax free just imagine what amount of cash you and your family would certainly need to maintain a normal lifestyle and make that monthly amount your minimum goal of coverage then you can always increase the amount in the future as your need and income rise.
2. Business Overhead Expense:
With the dentist/dental specialist being the primary driver of income for a practice it is crucial to have this coverage as a business owner. Even if you do not believe it to be necessary nine times out of ten a bank will refuse to give you a loan unless you carry some form of business disability insurance or commit your personal coverage to paying them first. What Business Overhead Expense does is if the owner and/or any owning partners are disabled, the insurance company pays monies towards the business loan, salaries, utilities, taxes , legal fees , etc.. This insurance protects the practice and saves the owners from having to make split second decisions on fire selling the practice or selling off share in the practice if an owner/partner is disabled. It is a key insurance towards protecting the business and offsetting any unnecessary business risk.
Key Items to Note When Purchasing a Plan:
1. Always buy Level Pricing:
2. Protect your Occupation :
Companies will call this feature : Own Occupation , Regular Occupation , True Occupation or Pure Occupation. All are synonyms for the same thing just different for branding purposes. The only companies current that are known to offer this feature and have a strong financial rating are : MassMutual , Principal , Guardian and Ameritas.
3. Make Sure your Contract is Non-Cancelable and Guaranteed Renewable:
4. Protect against inflation with Cost of Living Adjustment Rider ( COLA 3%):
5. Partial Disability (Also known as Enhanced Partial, Extended Partial):
6. Future Increase Option / Benefit Increase (FIO/BU/BIR):
7. Waiting Period:
8. Benefit Period:
9. Additional Features:
At CFS Dental Division we customize every plan to our dentists / dental specialists based on a one hour consultation on learning about you and putting these differences into more simplified terms so that you can make the most educated and informed decision on what you think is best for your individual situation and needs.