Income Protection for Dentists
If you can't work because of illness or disability, income protection insurance (also called permanent health insurance) pays out a tax-free income. If you are self employed, you will not have access to state benefits.
The income protection insurance aims to put you back to the position you were in before you suffered a loss but it does not allow you to make a profit out of your misfortune. The maximum amount of income you can replace through insurance is broadly the after-tax earnings you have lost. This usually translates into a maximum of, say 60% of your before-tax earnings or net profit.
You pay a monthly premium throughout the term of the policy. Cost depends mainly on:
- Your age – at the time you start the policy. Older people are more likely to suffer an illness, so pay more.
- Your gender – gender can have an affect on the premium you pay.
- Your health – at the time you start the policy. If you have existing health problems you might be refused cover or have to pay more.
- Your job – some jobs are more likely than others to contribute towards illness. For example, an administration clerk is deemed to have a very safe job but a dentist has a higher risk in relation to loss of income and as such is likely to pay more.
- Hobbies and lifestyle – for example, smoking makes you more likely to become ill, so you'll pay more, also some hazardous pastimes such as rock climbing can increase the cost.
- Waiting period – once you claim, there is a delay before payments start. You can choose how long this is - for example, from day 1 up to 104 weeks. The longer the waiting period, the less you pay.
We have access to companies who offer bespoke dental income protection policies exclusively for Dental Surgeons, therefore, if you would like further information about any of the above or would like to arrange a free no obligation meeting, please give us a call on 01489 890111.
- The financial Services Authority does not regulate taxation and trust advice
- Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor
