Even if you have a very mature, profitable practice, you will want to carry disability insurance. Here are some things to consider:
What about the benefit do you need? You may not have increased it in many years. Sometimes when dentists are just starting off, they get the bare minimum and it only pays a very modest benefit. You may need to increase this amount, now that your practice has higher operating expenses. You may want to make sure that your policy keeps up with inflation, but you’ll have to specify that it adjusts for cost of living.
It’s essential that you have a clear understanding of what constitutes a disability. The language might need to be changed to accommodate all the responsibilities you have within your practice. Are there certain duties you would be performing that could cause your benefit to be withheld? And what about residual benefits? Will your policy offer benefits that supplement your income if you’re only able to return to work part-time?
You’ll have to weigh the options of having a shorter vs. longer elimination period. If you opt to receive benefits sooner, your policy will usually be more expensive. It depends how long you feel comfortable going without income. A 90-day elimination period is generally considered most sensible. Hopefully, an emergency fund you have would bridge that gap.
You’ll want to have coverage up until your anticipated retirement. You may need to purchase a supplemental policy at some point. Don’t let an unforeseen event or illness put your livelihood in jeopardy. Review your disability insurance policy and see if it meets your needs for the quality of life you expect.
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Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.
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