6 Factors That Affect Disability Income Insurance Costs for Dentists

Disability income insurance protects dentists’ ability to earn a living in the event of an injury or illness. Since this insurance protects your livelihood, it’s important to ensure you have a policy customized to your specific needs as a dental professional.

Watch: Top 3 Questions Dentists Ask Us About DI

What Impacts The Cost Of Disability Income Insurance

Here are six factors that often impact the cost of disability income insurance for dentists:

1. How your income affects disability insurance premiums

Your total income can affect the price of your disability income insurance for a number of reasons, including the amount of coverage you need. Premiums for disability income insurance vary based on the amount of coverage and the policy’s configuration. The higher your income, the more coverage you’ll want in case of an unforeseen injury or illness.

It’s also crucial to ensure you have the ability to scale your disability income insurance coverage throughout your career. The amount of coverage you need today will likely need to grow as your career (and earnings) advance.

2. Waiting period and elimination period

A waiting period, or elimination period, is similar to a deductible: it’s the period of time you must be disabled before any benefits are payable. While 90 days is the most common elimination period, many insurers offer both longer and shorter options. The shorter the waiting period, the higher the premium cost.

3. Benefit period

The benefit duration, or benefit period, is the maximum length of time you can collect benefits if you are disabled and unable to work. The benefit period directly impacts your ongoing premium.

Benefit periods may cover a fixed amount of time, but it’s more common for them to end at a specific age. The three most common benefit period end-ages are 65, 67, and 70.

4. Disability insurance policy riders for dentists

Riders are additions to disability income insurance contracts that expand coverage and allow you to customize your policy, so your individual needs are met in the event of disability.

Here are some of the most common disability income insurance riders for dentists:

Own occupation definition of disability. Covers disabilities that prevent you from working in the specific occupation for which you have been trained and are currently working. If you are totally disabled and unable to work in your own occupation, full benefits are payable even if you return to work in a different field. This is especially important for dentists, whose specialized skills make own-occupation coverage critical.

Cost of living (COLA) rider. Provides a post-disability adjustment to your monthly benefit to help offset inflation. As inflation erodes the purchasing power of your income, this rider works to help keep your benefit in step with rising costs.

Partial disability rider. Helps you stay financially secure if you can still work but not at the same capacity as before a disabling event. If your income drops because you can no longer work as much or as quickly, this rider can replace a portion of lost earnings.

Catastrophic disability rider. Provides additional disability benefits in situations where you require substantial assistance. These benefits are paid in addition to your regular monthly disability benefit.

Future insurability option (FIO) rider. Allows you to increase your coverage as your income grows, regardless of changes in your health. This is particularly valuable for dentists early in their careers or in growing practices.

Student loan rider. Pays additional monthly benefits in the event of total disability. Benefits are paid to you on a reimbursement basis.

Riders and other policy customizations affect your premium based on the additional coverage they provide. An insurance specialist with experience in the dental market can help you identify the right combination of riders for your situation.

5. How age affects disability insurance costs for dentists

Disability insurance premiums are age-rated, meaning the younger you are when you purchase coverage, the lower your premiums will generally be. Many insurers also offer significant discounts when coverage is purchased during dental school or residency. Because students and residents may have little or no income yet, many companies offer special coverage limits that don’t require proof of income – making it an ideal time to lock in favorable rates.

6. How health status impacts disability insurance premiums

Your current health status may factor into your disability income insurance premiums because insurers assess your overall risk. Certain health conditions may result in the insurance company approving your policy with a rating (i.e. charging extra premium) and/or issuing the policy with an exclusion(s).

Because health tends to change with age, purchasing disability income insurance while you’re younger helps protect against a future health change affecting your ability to qualify for coverage. A policy with a future insurability rider can further mitigate this risk by allowing you to increase coverage as your income grows without needing to demonstrate continued good health.

How do you find the right disability income insurance policy for dentists?

To understand the details of your individual policy – how your premium is determined, which riders make sense for your career stage, and more – work with an insurance specialist who focuses on disability income insurance for dental professionals. You’ll also have the opportunity to learn about:

Non-cancelable and guaranteed renewable policies, which lock in your policy terms so coverage can’t be changed or canceled by the insurer as long as premiums are paid on time.

Level premiums, which provide consistent, predictable pricing from the time your policy begins until age 65. As coverage is increased in the future, the cost for the additional coverage will be added to your original cost.

Graded premiums, which allow you to start with a lower premium that increases annually. Graded premiums can be changed to level premiums in the future when you can typically more easily afford them. This is a good option for those doctors still in training.

Request a free consultation with a Treloar & Heisel team member to learn more about disability income insurance for dentists and to find the right policy for you.

About Treloar & Heisel

Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.