Starting a career as a dentist is both exciting and demanding. After years of rigorous training, the transition from dental school to professional practice brings new challenges and responsibilities. Among these, ensuring financial stability through proper income protection should be a top priority. Here’s why protecting your income is crucial for new dentists and how you can go about it.
Risks and Uncertainties
Despite the noble nature of the profession, dentists are not immune to risks. The physical and mental demands of the job can lead to burnout, injuries, or illnesses that could temporarily or permanently impact your ability to work. A BDA report in 2023 claimed almost half of dentists claim stress in their job exceeds their ability to cope. Anxiety, stress and burnout are increasingly prevalent within dentistry. Without adequate protection, such issues could lead to significant financial strain.
NHS Sick Pay: Not always enough
While the NHS offers a certain level of income protection this is based on NHS work only, it might not be sufficient in all circumstances, particularly for those doing private work with financial commitments such as student loans, mortgages, or family support.
Based on NHS pay only, dentists when unable to work due to sickness can expect to receive full pay between weeks four and 26. So, for the first month, they’re on their own. After four weeks the NHS then starts paying them until 26 weeks have elapsed, but weekly payments cannot exceed £1,660 for a dental performer and £3,630 for orthodontic performers.
After a year, statutory sick pay applies, which is substantially lower. Considering the high cost of living, especially in urban areas, this safety net might not suffice to maintain your financial obligations and lifestyle.
The role of income protection insurance
Income protection insurance can bridge this gap. This type of insurance provides a regular income if you are unable to work due to illness or injury. It usually covers up to approximately 60% of your gross salary until you can return to work or retire. Here’s why it’s particularly beneficial for new dentists:
- Comprehensive coverage: Income protection insurance can cover a wide range of conditions, including physical injuries and mental health issues.
- Flexibility: Policies can be tailored to your specific needs, including the deferment period (the time between making a claim and when payments start), which can align with your NHS sick pay period.
- Long-term security: Unlike NHS sick pay, income protection can provide support until you reach retirement age if necessary.
Costs and considerations
The cost of income protection insurance varies based on factors such as age, health, and the level of coverage. For a new dentist in their 20s or early 30s, premiums should be affordable for most. While this is an additional expense, it’s a small price to pay for financial security and peace of mind.
Choosing the right policy
When selecting an income protection policy, consider the following:
- Policy terms: Ensure the policy covers your specific medical specialty and working conditions.
- Deferment period: Choose a deferment period that aligns with your NHS sick pay benefits.
- Exclusions: Be aware of any exclusions that might affect your coverage, such as pre-existing conditions.
- Financial strength of the insurer: Choose insurers with a strong financial background and good customer reviews.
Securing your Future
As you embark on your dental career, it’s essential to plan for the unexpected. Income protection insurance is a vital tool to ensure that your financial stability remains intact, even in the face of health challenges. By securing this insurance early in your career, you can focus on what you do best – providing excellent care to your patients – while having peace of mind about your financial future.
For more information on income protection options tailored for dental professionals, consider consulting with a financial adviser who can help you navigate the available policies and choose the best one for your needs.
Content correct at time of writing.