It’s possible that you have income protection insurance (also known as permanent insurance) if you are a dentist. You may even have claimed on your policy.
Many of the top insurers have released their claim statistics over the past few years for income protection and critical illness coverage. This information is extremely useful as it provides insight into what policyholders claim for and gives you peace of mind knowing that your insurance pays out.
Let’s take a look at the statistics provided by DPS.
Dentists’ Provident Society was established in 1908 and is the largest provider of income protection insurance for dentists in the UK.
They have over 13,000 members. Because they specialize in the treatment of dental professionals, they are able to compile detailed information that can be used to show the value of income protection insurance.
Highlights:
DPS paid PS2.7m in claims in 2006.
They paid on average 121 claims per month
– 2006’s largest claim was PS32,100 (an average PS1,893)
– In 2006, benefits were claimed by 11% (1.456) of the insured members
– The average age for claimants was 43
– In 2006, the average length of short-term claims was less than 4 weeks
Let’s take a look at some claims from 2006:
Male, age 49 – Stroke – 11 year claim duration – PS116.730 paid (to the end of 2006)
Female – 54 – Spondylosis – 1 Year – PS338,858
Male – 56 – Torn tendon – 1 month – PS2,700
Male 38-Depression – 4 Years – PS162,400
Female – 28 – Back strain – 2 weeks – PS1,500
Male 25-year-old – Renal disease – 1 year – PS19.200
As you can see the claims have many reasons. Many of these would not be eligible for a claim under an insurance policy for critical illness.
DPS is a mutual organization, which means they don’t have shareholders. They are run exclusively for their members. Their claims philosophy is founded on fairness, honesty, and sympathy. Of the 1,456 claims filed in 2006, only 4 were related to claims.
DPS NEW CONTRACT
You may have heard that Dentists’ Protective Society revamped its income protection plan in 2008. There are many new options available. One of the major changes is that you can now set up inflation protection.
If you are an existing DPS member, it is likely that your current plan will either be set up on a reduced benefit or level benefit basis.
You can contact DPS to get a quote on one of their inflation-protected plans. There are many types of the inflation-protected version.
If you have to make a claim, this simple change could make a big difference.
The Key Considerations:
Income protection is one of the most important types insurance you can have. It’s likely that if you become disabled for a long time, it will have a significant impact on your quality of life.
Take the chance!
ACTION POINT
Review your income protection to ensure that you have sufficient coverage to cover your monthly expenses. You can either do your research yourself or consult a specialist to help you select the right package. (If you’d like)
For assistance, please call us at 0191 217 3340
Ray Prince, an Independent Financial Planner at Rutherford Wilkinson plc helps UK Resident Dentists and Doctors to get the best deals in mortgages, protection, and investments. He also assists them with their financial goals.