Volume 9 • 2022 • Issue 4

When Your “What if…” Becomes “What now?” “More people are surviving critical illnesses and recovering from disabilities faster. Combine these advancements with rising salaries for dentists and it’s no surprise that income insurance, in the form of living benefits, is so popular,” says Julie Berthiaume, a senior insurance advisor with CDSPI Advisory Services Inc. Consider just one statistic: Since the cancer mortality rate peaked in 1988, it has decreased 37% inmen and 22% inwomen between 1988 and 2021. 1 A greater chance of survival is great news. It also means more people will need the financial protection of income replacement insurance to maintain their standard of living and focus on what matters—recovery. A diagnosis of cancer, a heart attack, or a stroke can be overwhelming both emotionally and financially. It makes sense to take a hard look at income replacement and get experienced advice from the day you graduate and start your career. Getting started As your income increases, and the number of people that depend on you goes up, it’s important to do three things: 1. Start early and stay insured. Insurance premiums are typically at their lowest when you are young and healthy. It pays to lock in a good rate and stay insured because any time insurance lapses, you may have to requalify medically and financially for coverage. If there have been changes to your health status, premiums could go up by a little or a lot plus you might face exclusions or even be denied for coverage by the insurer. 2. Know how to pay for insurance. Berthiaume suggests that some insurance premiums, such as life and disability, should be paid directly by dentists (instead of their professional corporation) to ensure benefits are tax-free in the unfortunate event of a claim. 3. Review and revise. Coverage should be adjusted annually or whenever there is a change to income or expenses. Experienced advisors will strongly encourage these regular check-ins. Not all coverage is the same Break a bone and you can count on your local hospital to set it straight and get you on your way. Your government health plan picks up the hospital and doctor’s fees, but you may be asked to pay for crutches or a stabilizer. Add the out-of-pocket expenses for the cost of treating a critical illness or disability and you face the possibility that you could be forced to use your personal savings or sell assets just to cover: z Personal support workers z Medications not covered by government plans z Travel to and from treatment z Parking z Cleaning services z Lawn care/snow removal z Accommodation for out-of-town relatives z Private physiotherapy z Personal trainers z Home modifications As a dentist, you’re focused on your patients, your profession and the staff who keep your practice running. What if you couldn’t work because of a health setback like a critical illness or disability that prevents you from practising? Not being able to do what you love, and serve your patients, is a major emotional and financial setback. But you can protect yourself. 32 | 2022 | Issue 4