March 4, 2021

Engage Advisors: Putting Dentists in the Driver’s Seat of their Wealth – The Assurance of Insurance

Can you predict the future? Probably not, which means you need adequate insurance coverage to manage unforeseen risks like fire, ice storms…you get the idea.

Go back in time to February 2020. If someone had told you then the kind of impact the pandemic would have, you probably would have thought they were crazy. Maybe your business got slammed with a shutdown, or you lucked out and didn’t see a big impact. Either way, back then you probably could not have predicted what was coming – at least I wouldn’t have.

Our inability to predict the future is why insurance was invented. It’s simply a way to manage risk. The possibility that something bad could happen may be small, but when the cost of that bad thing happening is catastrophically high – so high it could ruin us financially – we need insurance.

The question, is, what kind of insurance do you need and how much? The answers to those questions depend on your particular situation, so let’s step through the basics.

Life Insurance

You need it. The real question is how much? If you’re just starting your dental career and you don’t have any dependents, it’d be smart to get enough to cover any debts you may have, such as a mortgage, or student loans that someone has cosigned. For a young person in good health, premiums are low, so it’s not going to set you back a lot. Someone who’s older and has dependents will probably want more robust coverage, but with the variety of insurance products available, that’s not a problem. You should be able to find something that meets your needs and fits your budget. What’s important is to clearly identify the impact the loss of your income will have on your family and cover it.

Disability Insurance

You need it. Think about this: among today’s 20-year-olds, one in four will become disabled before age 67. It could be an illness that prevents them from working for several months, or it could be a car accident that ends their career entirely. If either of those happens to you, how would you pay a mortgage, your kid’s college tuition, or save for retirement? By paying out a portion of your salary, disability insurance makes it possible to maintain financial security. That’s especially important at a time when you’re already having to deal with some pretty serious problems.

Business Interruption Insurance

If you own a practice, you should seriously consider this coverage. In the event of an interruption, such as a fire, or a natural disaster, it replaces business income that’s been lost as a result. If your office was part of a mandated shutdown, or if you have a practice in Dallas that got hit hard by winter storms, this type of insurance would help.

This a brief list of the basic coverage you should consider, and that a surprisingly high percentage of dentists lack. If you have questions about your current coverage, our advisors are available to answer your questions. At Engage Advisors, we won’t encourage you to spend money on policies you don’t need. We will let you know if you’re putting yourself, your family or your business at risk by not considering worst-case scenarios.  Last year was a tough year. Let’s learn from it. Contact us today to learn more.