Learn more about the types of insurance you should consider based on your post-graduation plans.
A LOOK AT INSURANCE OPTIONS THAT HELP PROTECT YOUR FAMILY AND YOUR PRACTICE AS YOU EMBARK ON YOUR DENTAL CAREER.
Congratulations — you’ve made it through dental school! Now it’s time to start planning for the rest of your life.
Regardless of your career path in dentistry, it’s important to consider the protection of disability, life and
supplemental medical insurance. Here’s an overview of the types of insurance you should consider based on your post-graduation plans.
The Insurance Everyone Needs to Consider
Disability income protection insurance can help replace your income if you
become disabled and can no longer practice your specialized area of dentistry.
Look for a true “own occupation” policy, which means that if you are disabled
from your specialized area of dental practice, you can still receive benefits even
if you are able to work in another area of dentistry, or in another field.
Life insurance is essential, especially if you have a family or plan to start
one.A life insurance policy can help make it possible for your family to maintain their
standard of living, even if you’re no longer there to provide for them. You don’t need
to have a family to think about life insurance because the younger and healthier you are
at the time of purchase, the lower your premium will generally be. You can choose between annually
renewable term policies where the premiums start lower
and increase with age or level term insurance plans, in which the premium remains the
same for a fixed period of time. Remember that if you choose a level term insurance
plan, your premiums are averaged over the term of your policy, and you will be paying
more when you are just starting out than you would with an annually renewable term policy.
To help protect your savings against unexpected healthcare costs, consider
Supplemental Medical Insurance, which can help cover the high out-of-pocket costs
typically associated with high-deductible health plans and with individual health coverage
purchased under the Affordable Care Act exchanges.
Insurance Based on Your Career Path
The career path you choose will also influence your insurance needs. Depending
on whether you are planning to go into residency, the military, a Dental Service Organization
(DSO), a small group practice or an individual practice, the type and amount of
coverage you'll need will vary.
Completing additional education
While you may not be bringing in a substantial income, you should still consider
financial protection for you and your family. Look for options that are no-cost or
low-cost but will still provide enough coverage to meet your needs, especially if
you're going to be in a long-term residency.
Buying a practice or funding a buy/sell agreement
You'll likely need a bank loan, or funding for a buy/sell agreement, to start a practice,
and to obtain either you’ll need some type of collateral. Many dentists use life insurance.
This strategy, known as "collateral assignment of a life insurance policy," enables your
lender to collect some or all of your life insurance (depending on how you set it up) if
you still owe money on your loan at the time of your death.
Consider Office Overhead Expense Disability Insurance. These policies help protect your
practice if you become disabled by covering important business expenses, like employee
salaries, rent or mortgage, practice loan or buy/sell agreements.
Working for a DSO or as an employee at a practice
Find out whether your employer provides disability and life insurance. If it does not offer both,
you'll need to find your own coverage. Even if your employer does offer disability insurance, does the
plan provide you with sufficient coverage, including a true "own occupation" definition of disability?
If not, consider obtaining your own coverage. Remember that you typically need to medically qualify for
life insurance, and it could become more difficult to obtain new life insurance or qualify for preferred
rates later in your life.
Right for your situation
Wherever your career takes you, insurance can help protect what you've worked so hard to build.
Look for the coverage that's right for your situation. Reach out to your Insurance Plan Specialist to
talk about your career plans and discuss how to customize your insurance portfolio to meet your needs.
They can help you determine what type and how much disability and life insurance coverage you'll need.
They can also help you consider whether you need Office Overhead Expense Disability Insurance and Supplemental Medical Insurance.