Dentists Provident – Medident FS

UNDERSTANDING THE REAL COST OF DENTIST PROVIDENT PREMIUMS EXPLAINS WHY ITS FREQUENTLY POSSIBLE TO MAKE SUCH LARGE SAVINGS BY SWITCHING INSURER

Dental Income Protection

HOW TO SAVE ON DENTIST PROVIDENT PREMIUMS

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Why is it possible to save £10,000’s on a long-term Dentists Provident Select Income Protection Plan?

Two Reasons...

1. Dentists Provident is 60% more expensive*, on average, than the best value equivalent policy, as shown on the table of premiums shown below, for Dentists Provident versus other available insurers

*Average starting premium difference across ages 25-55 and 1 month to 12 month deferred periods

Premiums information correct at February 2024

2. Income protection normally costs much more than insurer illustrations show

Which means A typical 35 year Dentists Provident policy...

Will typically be double the cost of the lowest cost insurer

Will typically be double the total cost shown on your Dentists Provident quotation

if you doubt this, ask Dentists Provident for a quotation that includes the cost of average long-term annual cover increases at 2.8%, as that’s the long term (35 year) average for the method they use to calculate cost of living increases, the Consumer Price Index or CPI. (CPI correct at May 2024

However, the good news is….

It's normally possible to make significant premium reductions by switching to another insurer offering the same quality of cover.

If you thought they were the only insurer that recognise retained profits, if you work through a Ltd Company, that’s wrong.

Here's an example of a dentist that did just that...

"I got in touch with Warren Robins from a LinkedIn advert I saw to see if I could get a better price on my Income Protection Insurance. The cost of my insurance had been steadily increasing over the years and had reached an excessive level. Warren was extremely helpful in explaining my options.He then found me a similar policy with a large, reputable insurer for a much better price and I am now saving almost £200 per month. I have been very pleased with the personalised service and the level of care that Warren has taken in organising the new policy. I would highly recommend his services."

Dr N D

Dental Surgeon

Want an idea of potential savings but don't want a consultation?

NO PROBLEM!

Just 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 by switching insurer, in just one working day

How does this impact costs?

This method is not used by most insurers and it means the premium increases are similar to most insurers when you’re young but become much more expensive than most, as you get older. If you compare dentist Provident premium increases overtime against a typical insurance company, for the same annual cover increase, of 3.6%, this is what you see.

Your Dentists Provident illustration document won’t show a realistic total cost as annual increases are not included, as shown by the disclaimer wording on this section from a Dentists Provident quotation document below, shows. The premium changes due to increasing the cover annually are not factored into the cost shown, making this extremely misleading and almost impossible to compare total costs.

If the difference between the total cost in the Dentists Provident quotation and the projection seems too big, consider this…

The annual premium increases act like compound interest

Well known genius, Albert Einstein called compound interest “the most powerful force in the universe”, so it has a huge impact on cost

Lots of slightly bigger increases really do add up

You could do nothing and find out it’s true, when it’s too late to do anything 🤔

If you’re wondering why you’ve never been told this before, it takes some serious, in depth research, to work all of this out, as I don’t think insurers want you to see this information! Luckily, Warren Robins worked as a research scientist in the UK and the USA, before working in financial services, so research and maths are very much his skill set.

This is illustrated by the formula shown below, which is typical of over 800 calculating cells used in the spreadsheet that generates premium projections.

=(IF(Y$3=0,AP24,1)*IF(Y$3=1,AQ24,1)*IF(Y$3=2,AR24,1)*IF(Y$3=3,AS24,1)*IF(Y$3=6,AT24,1)*IF(Y$3=12,AU24,1)*(W24(IF(W23>0,W23,W$7)))+IF(S23>0,S23,S$7))*IF(A24>$E$3,1,0)*IF((A24+1)>($E$3+$V$3),0,1)

Find out how much you could save by chatting to the Insurance Specialist, Warren Robins.

"I wanted to take out income protection as a Dentist and was finding it very difficult given my professional status. Warren at MediDent was excellent at explaining things and answered all my questions with detail and integrity. I would definitely recommend Warren to anyone in a similar position and cannot thank him enough for his efforts in arranging my policy so swiftly and with the cover I wanted. 5* service!!"

Dr A V

General Dentist

Dentist Provident Facts

Dentists Provident do not give financial advice, so can't actually recommend their own policies or give advice on what cover would be best for you.

5% is their maximum annual cover increase, so you can't maintain the value of your benefit in a high inflation environment.

The maximum allowed cumulative increase over your policy term is +150%, so if you had 20 years of 5% increase, your cover would stop increasing, a significant problem if you have 20 years to go on your cover.

Dentists Provident reviewable premiums include an element of age costing, so will increase much faster than guaranteed premiums or most other reviewable premiums.

Dentists Provident guaranteed premiums can increase under certain circumstances, as detailed in their policy document.

Real world example

Quotes correct at 28/3/23, for £3,000/month cover, 6 month deferred period, increasing cover, guaranteed premiums, 45 yr old non-smoking dentist to age 65

Holloway FS increases at RPI long-term average of 3.6% / Dentists Provident increases at CPI long-term average of 2.7%

The Financial reality - less cover & more cost

As you can see above, not only are Dentists provident premiums significantly more expensive to begin with, which is normal, but it’s also worth noting that the Dentists Provident premiums increase by 160% over the term versus 96% for the Holloway FS premiums.Despite the higher premiums, the cover also increases slower, so the Holloway FS policy finishes with 18% more cover, as well as costing a great deal less.

If you look at the difference in total premiums, the more expensive dentists Provident policy would actually cost you more than that. The additional cost in premiums could be invested two wards your retirement funds each year, so you’re also missing out on the investment returns you could have achieved on the saved premiums, which is an even more sobering thought! Almost all of our dentist clients are a bit sceptical the first time they see this information but that changes when they’re shown the detailed research behind it, so if you’re still feeling sceptical, we’re used to that, all we ask is that you have an open mind.

What have you got to lose? About 20 minutes of your time.

What could you potentially gain? Typically, tens of thousands of pounds.

"I’ve never had someone be so transparent and open about personal finances. On top of the brilliant saving Warren help me achieve, my level of trust in him could not be greater. Having his experienced judgment made an important decision much easier. Warren showed me what he was seeing on his computer screen and explained the complex matters so clearly. On both a professional and personal level, Warren is a fantastic individual. I’m grateful to have had Warren’s help and would definitely recommend MediDent to anyone in need. Thanks"

Dr A Patel

Associate Dentist

[email protected]

0330 1133 979