The typical dentist comes out of dental school with a ton of debt and very little money. Moreover, they have to plan appropriately to set themselves up for years to come, but many fail. So, how can dentists avoid the pitfalls of financial ruin?
One vital part of financial planning that dentists often overlook is disability insurance. Worse, many still don't know about it!
Many dentists think they can get $20,000 of coverage, and that's it. But it doesn't work that way.
In reality, there is a financial underwriting component where you have to show your finances, such as contracts, pay stubs, and tax returns. And generally speaking, you will qualify for roughly 50 to 60% of your income. But why?
The idea is that you shouldn't be making more money on disability than you are practicing, which is called a moral hazard. Yet the good news is that the benefits, generally speaking, are going to be paid tax-free. In other words, the taxable equivalent gets closer to what you're actually earning from an income potential.
Additionally, some policies allow you to increase your coverage as time passes and your income grows without going back through medical underwriting, which is crucial.
If you want to learn more, tune in to this week's episode of ''The Raving Patients Podcast''!
Edward Dennis is a financial advisor specializing in the dental market. He has a lot of experience helping dental professionals plan their financial futures and become better at business and finance.
Edward joins me to share 7 financial planning strategies all dentists should know about. We discuss the benefits of buy-sell planning, how to use a 401(k) to improve talent attraction and retention, and the one thing all dentists should have in their financial portfolio.
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This podcast is sponsored by Cloud Dentistry, the largest dental talent marketplace. Find out more at: http://www.clouddentistry.com/Len
This podcast is sponsored by Dental Intelligence. Learn more at: https://www.dentalintel.com/
This podcast is sponsored by The Doc Sites, the leading provider of websites and online marketing for dentists. Find out more at: https://www.docsites.com/
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