Critical Illness Cover for Dentists
Critical Illness Cover for Dentists
As a professional, critical illness is likely to form a key aspect of your personal financial portfolio. However, key changes in the critical illness market mean you need to carefully consider the implications of the policy you have or are deciding to take out.
What is critical illness?
Critical illness cover for dentists pays out a tax-free cash sum, on diagnosis of any one of a number of life threatening or critical conditions, which you may or may not survive. The lump sum is yours to do with as you please, but is traditionally used to assist you throughout your illness or impairment i.e. alterations to your home, paying for your children's school fees or paying off a mortgage.
As a professional, the benefit of having such cover in place is evident if you are unable to work due to illness or impairment, the tax-free lump sum can be used to help you overcome your financial commitments or adapt your lifestyle. If you were to die as a result of your illness or injury the tax-free lump sum can be used to financially support your family during the impact of your death and the financial consequences of losing part of the family income.
However, recent changes within the critical illness marketplace mean that many providers have now withdrawn a key aspect of the policy in respect of those working in a professional capacity.
The own occupation' clause has been removed by almost all UK providers.
This means the cover provided by critical illness policies to professionals may be less comprehensive than first envisaged.
Own Occupation
The own occupation' clause provides cover under the Total Permanent Disability section of your critical illness policy. TPD is described by the Association of British Insurers as Loss of the physical or mental ability through an illness or injury, to the extent that you are unable to do the essential duties of your own occupation, ever again. The condition must be expected to last throughout life with no prospect of improvement, irrespective of when the cover ends or you expect to retire.'*
Therefore if you were to suffer the loss of fingers or permanent use of an arm, under the own occupation clause you would be unable to return to work in your capacity as a dentist and therefore you would be entitled to the full value of your lump sum payment.
On a critical illness policy, which does not contain the own occupation' clause, if you sustained the disability used in the example above, your provider is likely to classify you as able to return to work in an alternative capacity to that of a dentist. Therefore, you could be expected to return to work in a position where your salary is significantly lower than your dentist's income as well as failing to receive any benefit from the policy provider.
As a professional the benefits of the own occupation' clause on a critical illness policy are therefore significant. However, as almost all of the market providers have decided to remove the clause from their policies, it may only a matter of time before it is withdrawn completely. This, therefore, has a massive impact on your critical illness cover. If you are currently applying or are considering to apply for a critical illness policy it may be wise to act now whilst there is still some opportunity to take out cover with the dental specific own occupation' clause.
The true impact
Running alongside critical illness cover many of you are likely to also have income protection cover - in many circumstances the two policies run hand in hand. Income protection cover offers protection for loss of income through illness or injury by providing regular payments either monthly or weekly up to 60% of your taxable income. As a permanent health insurance policy, the benefit is potentially payable until your death, return to work or until you attain your chosen retirement age. Therefore, an income protection policy provides you with protection through enabling you to maintain your standard of living whilst you are unable to work. Like critical illness cover, providers of income protection offering the own occupation' clause are also decreasing.
In this case, own occupation' allows a professional to continue receiving their regular benefits until they are able to return to work in their professional capacity for which they are trained and qualified. Without this clause, benefits will cease if you are perceived to be fit enough to return to an alternative type of employment possibly unskilled with a far lower salary than you are accustomed.
As a professional it pays to safeguard the future of both yourself and your family through taking out cover such as critical illness and income protection. If you are currently considering investing in either of the policies discussed in this article and you want to reap the benefits of own occupation' cover, clearly now is the time to act before this dental specific clause is withdrawn completely.
Further information
To find out more about critical illness cover for dentists or income protection for dentists as detailed in this article, please call 0845 130 1366. We also offer many other Insurance and Financial Service solutions. Therefore, to find out more or obtain a no obligation quotation today, please contact one of our advisers on the number quoted above.
Dental Practice Insurance – Is yours up to date? How is cosmetic dentistry Toronto famous? Good Dentists Bring Back Great Smiles Orthodontics: The Most Common Dentistry Specialization Common Causes Of Teeth Grinding How Important Is Cosmetic Dentistry? Cosmetic Dentist Fairfax|dental Check-up Smile with a Complete Set of Teeth Richmond Va Cosmetic Dentist|implant Dentist Richmond Va Making the Distinction: Precautions on How to Spot a Real Dentist Cosmetic Dentist Richmond|implant Dentists Richmond|sedation What a Hilton Head Dentist Does Using A Markham Dentist Or A Milton Dentist