Welcome To MediDent
Read on to Find Out Why Our Dentist Clients Say This
The reason it's possible to save so much is, many dentists overpay for income protection without realising, because of these two factors...
- Almost all insurers give unrealistically low full-term costs*
- The starting premium is not a great indicator of the full-term cost
* Where increasing cover is taken indexed to RPI / CPI / CPI-H
This combination makes it extremely difficult to find the best income protection policy, even for most financial advisers, as explained below
1. Unrealistically Low Full-Term Costs
All insurers show a full-term policy cost on illustrations but the cost shown typically is based on cover that does not have annual inflation-proofing cover increases selected.
Historically, premiums on inflation-proofed policies have increased most years but this is not reflected in the cost shown.
Good advice is so important to understand the financial impact of the annual cover increases.
To understand the magnitude of the projected cost difference, take a look at two 36 year policies with identical cover
| Insurer | Monthly Starting Premium | Documented Total Cost | Realistic Cost* |
|---|---|---|---|
‘A’ | £50.12 | £21,501 | £51,121 |
‘Z’ | £50.07 | £51,066 | £51,066 |
*Total Cost for 3% Annual Cover Increases
The 3% increase is used for illustration purposes only, as the future cost of living increases are unknown. The measure used by most insurers when applying cover increases, is the retail price index (RPI). The 35 year average for RPI is 3.7% and the 10 year average for RPI is 4.1% at December 2023.
In reality, the insurer ‘A’ policy would always cost more than the insurer ‘Z’ policy but insurer ‘Z’ use a fairly realistic 3% annual cover increase in their cost projection, whereas insurer ‘A’, like most insurers, use the disclaimer above, so the total cost given is unrealistic.
The full insurer ‘A’ and insurer ‘Z’ illustrations can be downloaded HERE, if you’d like to see the proof in black & white.
Fact: £1,000 of cover with 36 years of 3% increases becomes £2,814
2. The Lowest Starting Premiums Normally Cost More Overall
The same cover as used in the insurer A and Z example is available at a much lower cost through insurer C, for £25.11/month or insurer E, another income protection specialist, for £22.45/month but look at the total costs
| Insurer | Monthly Starting Premium | Documented Total Cost | Realistic Cost* |
|---|---|---|---|
C | £25.82 | £58,262 | £77,912 |
E | £22.45 | £32,631 | £64,884 |
*Total Cost for 3% Annual Cover Increases
Why the disconnect between the starting premium and the total cost?
It’s because of how insurers apply annual cover increases.
A 3% cover increase can increase the premium from 3% to over 16%, depending on the insurer and your age.
This factor, combined with insurers not showing a realistic total cost, is why it’s so difficult to find the best dentist income protection policy, even for advisers, UNLESS they have certain specialist tools.
Fact: The same cover was available at a starting premium of £37.48/month and a total projected cost of £28,143
Want an idea of potential savings but don't want to talk to an Adviser?
Send your current policy information, age & smoker status and you’ll be sent a report showing a realistic full-term cost projection and any potential savings from switching insurer, in just one working day. (Report is for information only. If you wish to take out a policy, a fully advised process would be required)
Guaranteed no phone calls or email follow-ups, simple as that.
Why Use MediDent FS?
We specialise in income protection for Dentists, we understand the Associate Dentist regime for NHS work and the different requirements for fully private as a Sole Trader or working through your own Ltd Company.
We can find you the best value cover over the full policy term – simple as that. How?
We’ve modelled the various increase methods used by insurers, so generate instant, realistic, total costs for insurers from Aviva to Zurich, including two insurers particularly popular with dentists. A bit like Voldemort, we can’t say their names!
This capability regularly saves our clients tens of thousands of pounds, so always use an adviser that understands dentists needs and
- Tells you the total cost shown by insurers is unrealistic
- Gives you a realistic full-term cost projection
If they don’t, you’re relying on pot-luck, to avoid paying massively over the odds.
Don’t want to risk massively overpaying? Book a no obligation, video consultation today
Just Want to Know a Bit More About Income Protection?
Download out income protection guide HERE. It will answer a lot of the questions you should ask if you want to set up a policy correctly and also show you that it’s a more complex topic than it seems on the surface.
Knowledge + Great Customer Service =
Do Dentists Need Income Protection Insurance?
Consumer group Which? say this: “It’s the one protection product every working UK adult should consider.”
Dentistry, by its nature, places uncommon demands on the body, so wrist, back, neck or shoulder problems are not unusual so are among the most common income protection claims for dentists. Dentistry is also psychologically demanding and stress related conditions are a prominent claim for Dentists and combined with the fact that a simple hand injury could prevent work, makes Dentists more vulnerable than most occupations.
Increased vulnerability and high incomes, makes income protection for Dentists, a no-brainer but don’t overpay, get expert advice.
There's no time like the present!
If you need dentist income protection or want to save on a policy, it makes sense to act quickly, for these reasons. Pre-existing conditions, particularly back problems, are normally excluded on a new policy and the premiums increase as you get older, so it makes sense to get the best policy when you’re as young, fit & healthy as possible, normally meaning, now.
Other Insurances We Can Advise On
Private Medical Insurance
With post COVID NHS waiting lists at record levels, it’s value has never been greater, if you need a fast return to health
and work, in the event of illness.
Life Insurance
Having a policy to pay off a mortgage is a no-brainer but make sure to consider whether you need a policy to replace the monthly income that’s lost on death.
Critical Illness Cover
If you want the peace of mind of paying off your major debts or just an emergency fund if you suffer a serious illness, this type of cover should be considered.
Business Insurance
We can advise on protecting any business loans, key people or shareholder liability, if you’re one of the
business owners.
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