| Occupational Specific
Benefits |
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| 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
get injured and can no longer practice as
an orthodontist (maybe you broke your hand),
the policy will 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. Many of them
say you must not only be disabled from your
occupation, but UNABLE to work in any gainful
occupation. Having the ABILITY to flip burgers
could preclude you from receiving a benefit.
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| Occupational Classification |
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| Insurance companies have different rates
and policy features for different occupational
classes. As a dentist, your profession qualifies
you for the most comprehensive disability
plans available. |
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| Group Disability
Benefits |
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| Many dentists are offered group disability
insurance by their employer. Here are some
things to consider: |
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Group plans may be changed
or canceled at any time. This could
leave you without |
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coverage when you need
it. |
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Most group plans can’t
be taken with you if you should decide
to switch employers. |
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Most group plan benefits
are taxable and don’t cover bonuses,
leaving you with a lower net |
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after-tax benefit. |
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Many group disability
plans have a restrictive definition
of disability. They require you to be
COMPLETELY disabled before they will
pay a benefit. In other words, if you
have the ability to do any type of work,
benefits may not be payable. |
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Benefits may be offset
by income received by workers comp or
social security. |
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Most group policy benefits
don’t keep pace with inflation. |
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Many group plans don’t
cover a partial disability (the most
common type of disability). |
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| Business Overhead
Expense Disability Policy |
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| If you are a dentist who owns your own
practice, you may want to consider
disability
overhead expense. If you were to become disabled,
this policy can provide funds to help cover
ongoing expenses such as rent, employee’s
salaries, etc., to keep the practice open
during the period of disability. Few dental
practices could 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. An overhead expense policy
is designed to give you the ability to cover
expenses while on a disability claim and come
back to an existing practice when you’re
able to. |
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| Other Options |
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| Social Security |
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Qualifying for Social
Security benefits is very difficult
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. |
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If you think you could
get by on Social Security benefits,
you may want to reconsider. |
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| Worker's Compensation |
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Worker's Compensation
only covers job related sickness or
injury. In addition, these |
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benefits are limited.
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| Savings, Your Family or a Bank
Loan |
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If you saved 10% of your
income each year, a one-year disability
would wipe out 10 years of savings.
With your savings gone, your other assets
would begin to dwindle as well. Who
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 wouldn't want to give a loan to
a disabled person with no income and
no guaranteed prospect of being able
to repay. |
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| Disability is difficult enough –
disability without income is even worse. Disability
insurance is the only long-term solution to
a long-term disability. |
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