Volume 8 • 2021 • Issue 2

Top 3 Types of Insurance for Dentists 1) Life Insurance — To protect your loved ones Life insurance can take a few different forms and at a glance it can seem like a complicated matter to tackle. But life insurance serves a fundamental purpose in that it can help your family maintain their standard of living in the event of your death, and/or cover important expenses such as funeral costs, post-secondary education, outstanding mortgage and tax payments and basic living expenses. •Basic Life Insurance A life insurance plan can help safeguard the things that are most important to you and help cover the essential expenses listed above. Under the CDSPI Basic Life Insurance Plan, younger dentists (typically under 50), can usually apply without a medical, and for those in good health, lower rates are generally offered.* •Family Life Insurance A family life insurance plan offers additional security for your family, as it provides coverage for your spouse and dependent children, all under one plan (there is often an additional premium to insure dependent children). CDSPI Family Life Insurance coverage offers the option for your non-dependent adult children and their spouses to also apply for coverage. •Term Life Insurance Term insurance provides coverage for a specific period of time. Your insurance costs stay the same throughout the term, and if you die while the policy is in effect, your beneficiary receives a tax-free lump sum payment. •Permanent Life Insurance (for individuals only) Permanent life insurance, meanwhile, provides coverage for your entire life. One of the primary benefits of permanent insurance is that it often has a form of cash value or savings that grow within the plan, which can help you build your wealth on a tax-free basis. For dentists, this means life insurance can be a way to diversify your corporation’s assets–it can also help reduce the taxes your estate would be subject to upon your death. Both term and permanent insurance structured specifically for dentists can also provide coverage for dental practice partnerships, in that it can give you the financial resources to buy out a deceased partner’s interest in the practice or offset financial losses upon the death of a key person in your practice. 2) Living Benefits Insurance — To protect your way of life While the benefit of life insurance is generally realized upon the death of the policy holder, living benefit insurance provides benefits during your lifetime, helping you deal with issues due to aging, illness and accidents. There are a few common types of living benefit insurance policies. •Disability Insurance (DI) Disability Insurance pays out a stream of monthly income in case you get disabled and cannot work. While the injury or disability doesn’t have to occur while you’re working, it needs to be serious enough to prevent you from working and earning an income. Dentists should consider a DI policy which can provide enhanced “own occupation” coverage, which allows you to receive disability benefits if you cannot practice dentistry–even if you’re able to earn an income from a different occupation. •Critical Illness Coverage Critical Illness (CI) coverage is generally considered an essential complement to Disability Insurance. While disability coverage provides a portion of your income on a monthly As a dentist, you have insurance needs that are different than other Canadians. This is particularly true if you own a practice, as you are more exposed to risks that may affect your income, health and assets. Between protecting your ability to earn a living in the event of illness or injury, protecting your loved ones in the event of your death and protecting your practice against unexpected events or potential lawsuits, you need to be sure you’re sufficiently covered. After all, you have worked hard to build your career. Fortunately, it’s easy to protect what you’ve built with a few essential insurance plans in place. Here are three essential types of insurance dentists should consider. 38 | 2021 | Issue 2