Life can change quickly for dentists. Milestones such as opening a practice, starting a family or planning for the future
often come with new financial responsibilities. Each life and career change is a reminder to review your insurance coverage
and ensure your financial future, practice and family are protected.
For high-earning professionals like dentists, keeping insurance coverage up to date is smart financial planning.
While you spend your days helping others care for their smiles,
don’t forget to take proactive steps to protect your income, loved ones and practice.
Having a robust financial safety net is a smart strategy to be prepared for life’s ups and downs.
Top 10 life events that signal it’s time to update your coverage
From starting a family to expanding your dental practice to planning for retirement, we’ll explore ten key moments that should trigger you to review your insurance plans and how they can help
protect a dentist’s career and financial future.
1. Career changes and insurance plans for dentists
Career transitions are common in the life of a dentist. Whether you’re moving to a new city or transitioning from dental school to a DSO or private practice,
becoming a partner or opening your own practice, each change brings new financial responsibilities and risks.
- Disability insurance for dentists is a must. Dentists should aim for coverage that replaces up to 60% of their income in case of a disabling event.
Review and increase coverage whenever your income rises. As your income grows, adjust your coverage to ensure it remains adequate. High-earning professionals may need
supplemental policies to achieve the recommended income replacement.
- Life insurance for dentists is also important. The rule of thumb for how much life insurance to carry is to have 15X your current income.1
- If you own a dental practice, it’s important to evaluate how your office overhead insurance coverage should increase to adapt to rising overhead costs.
Making sure you have enough coverage at all times is critical, so review and adjust accordingly.
2. Marriage or partnership and how it impacts insurance planning for dental professionals
Tying the knot or entering a long-term partnership often means merging finances and responsibilities. This is an ideal time to:
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Increase life insurance coverage to provide financial security for your spouse or partner in the event of your passing
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Explore exclusive member-rate insurance options that provide affordable and comprehensive protection.
Spouses and dependent children can benefit from your exclusive ADA member rates for ADA® Members Insurance Plans products, underwritten by Protective®.
Domestic partnership often marks the beginning of a shared financial journey. Ensuring your family’s financial protection now can help provide financial security for the years ahead.
3. Buying a home and the types of insurance coverage dentists need
Purchasing a home is a major milestone and a significant financial commitment. It’s also an ideal time to review your insurance coverage.
Disability income insurance becomes even more critical when you have a mortgage to manage. This coverage ensures you can continue making payments even if a disability affects your ability to work.
Consider how other types of insurance coverage for dentists, like life insurance, can also protect your investment and provide long-term financial stability.
4. Opening a dental practice? Make sure you have enough office overhead insurance
Launching or expanding a practice is one of the biggest steps in a dentist’s career, bringing with it increased financial risks.
Protecting your business and personal assets should be a top priority.
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Having enough office overhead disability insurance is a must for dental practice owners.
Increasing your coverage ensures your practice runs smoothly if you become disabled and are unable to work,
and premiums may be tax-deductible — check with your tax professional to confirm.
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Some life and disability insurance policies for dentists can be used as collateral for business loans.
Increasing your coverage may help secure funding for expansion or significant purchases.
Proactively managing these financial risks ensures the longevity of your practice and the security of your investments.
5. Growing your family means increasing insurance coverage
Welcoming a new child or caring for aging parents expands your financial obligations. To financially provide for your loved ones:
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Reassess your life insurance to account for education, health care and day-to-day expenses
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Consider insuring a stay-at-home spouse as their contributions would be costly to replace if lost
Being financially prepared means you can confidently support your family through all of life’s stages.
6. Considerations when building wealth or expanding a practice
As your income grows or your dental practice flourishes, your insurance coverage should grow along with it. Steps to take include:
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Increasing term life insurance for dentists to match your rising wealth
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Supplementing policies that have reached their limits to ensure adequate protection for new personal and professional assets
Wealth building also introduces the need for estate planning. Comprehensive insurance coverage for dentists ensures that your legacy and assets are preserved for future generations.
7. Health changes: adjust your life and disability insurance before you need it
Health challenges, whether affecting you or a loved one, can have significant financial impacts.
Having the right insurance amount in place is essential to navigating these challenges and preparing for unexpected events.
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Disability income insurance protects your income if illness or injury prevents you from working. According to claims submitted to ADA Members Insurance Plans,
approximately one in four dental professionals will collect disability benefits at some point before retirement.2
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Consider adding hospital indemnity or critical illness insurance options, to your portfolio.
This coverage helps manage the cost of extended care in case the unexpected happens.
Regular policy reviews ensure you’re prepared for whatever the future may hold.
8. Divorce or separation and the impacts on insurance for dentists
A major life change like divorce or separation requires a fresh look at your insurance policies. Steps to take:
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Update beneficiaries on your insurance policies to reflect your new circumstances
Taking these steps ensures you remain financially secure, and that your coverage reflects your current situation and helps financially protect you and those who depend on you.
9. Loss of a loved one and insurance updates a dentist needs to consider
The loss of a partner or loved one often comes with emotional and financial changes. Insurance can play a key role in helping you navigate this difficult time.
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Adjust your life insurance coverage to account for caregiving costs, debts or other
financial changes.
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Ensure your policies and beneficiaries are up to date to provide stability for your family.
Regular and thoughtful adjustments can help ease the financial burden and provide peace of mind.
10. Approaching retirement and insurance planning for dentists
As you approach retirement, your insurance needs will evolve to reflect your changing financial and professional priorities.
Protecting your assets and securing your legacy requires thoughtful adjustments to your insurance coverage. Here are key steps to consider:
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Reassess income replacement needs if your dental practice revenue declines or you reduce your working hours;
review your disability income insurance and other policies to ensure adequate income protection.
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Exploring specialized insurance options for dentists, such as long-term care insurance and term life insurance designed for dental professionals,
can help maintain financial stability and protect your family’s future.
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Adjusting life insurance coverage when scaling back hours or transitioning into retirement may require modifying your life insurance policies.
Consider supplementing or adjusting coverage to align with reduced income and evolving financial responsibilities.
Planning with comprehensive insurance coverage for dentists — such as disability income insurance,
life insurance and long-term care insurance — ensures a comfortable retirement while preserving your financial legacy.
Next steps
Every major life event is an opportunity to review your insurance coverage.
Take the first step today by contacting an Insurance Plan Specialist. Review your current policies and explore options that align with your current needs and future goals,
ensuring a secure financial foundation for years to come.
Schedule your free consultation with an Insurance Plan Specialist
Need to speak to someone immediately?
Call 866-607-5338