DTUK1510

June 7-13, 201016 United Kingdom EditionMoney Matters D entistry is widely ac- knowledged within the profession as a physi- cally and mentally demanding career. Perhaps for this rea- son taking out an income protec- tion policy is often high priority for dentists. Claims - Based on recent claims statistics, insuring your income in the event that ill- health prevents you from prac- ticing dentistry may be a wise decision. Leading income pro- tection provider Dentists’ Provi- dent paid claims totaling £3.2 million in 2009 with an average of 131 claims per month. Muscu- loskeletal claims rank the high- est with psychiatric disorders following a close second. One of PFM’s clients felt strongly enough to endorse the benefits of income protection: “I took an income protec- tion policy out, I slipped a disc in my neck and was unable to perform my dental duties and so had to claim unexpectedly. The insurer paid the claim for the full period I was off from work, eventually (approximately seven months on) when I planned my return to work they were very flexible and aided in a phased re- turn to work.” Male dentist aged 26, North West. Age demographics - The largest group claimants are fe- male and aged between 36 and 45, with the highest propor- tion of male claimants between age 46 and 55. This ‘age demo- graphic’ points to the benefits of taking out a policy early in your career. This argument is further strengthened when you accept that monthly premiums tend to be age-related. Cover levels - Many den- tists sign up to a policy on quali- fication, or even as a final year dental student. Whilst this is advisable, the level of cover can soon be outstripped by earn- ings. Dentists who have not re- viewed their cover since this time are unlikely to be ad- equately insured. With claims limited to 60 per cent of inc- ome (with no tax payable) it is recommended that dentists take out the maximum level of cover available. Policy options - An inde- pendent financial adviser will advise you on the most suit- able policy options, guiding you through decisions on ‘deferred’ periods, index-linked cover and guaranteed/reviewable premi- ums. Occupation specific cover is strongly advised given the relatively minor ailments that could prevent you from practic- ing dentistry. Advice options - A special- ist dental independent financial adviser will be able to select the most appropriate policy from a number of suitable insurers. A common misconception is that premiums will be cheaper if you go direct to the insurer. In the case of Dentists’ Provi- dent and the other occupa- tion specific insurers this is not the case. However please check that your adviser is independent and is suitably experienced in advising dentists before taking their advice. DT Income Protection – Keeping it specific About the author Jon Drysdale BA (Hons) Cert PFS is a qualified independ- ent financial advis- er and director of Practice Financial Management Ltd (PFM). PFM offers specialist inde- pendent financial advice for dentists in England Scotland and Wales. For further information contact Jon Drysdale at PFM on 01904 670820, jon.drysdale@pfmdental.co.uk or visit www.pfmdental.co.uk Jon Drysdale says double check what is covered in your income protection policy...