Life insurance allows dentists to protect their family’s financial well-being in the case of untimely death. It can be an uncomfortable scenario to think about, but there are many factors to plan for to ensure you have enough coverage.
Just over half of American adults have some form of life insurance coverage, according to a study by the Life Insurance Marketing and Research Association (LIMRA). But this statistic includes employer-sponsored plans, which disappear when you move employers or lose your job — a very real concern in the midst and aftermath of COVID.
Unfortunately, dental professionals are often targeted by the insurance industry due to their high income. Many dentists end up with expensive plans that include unnecessary fees and huge commissions.
Regardless of the type of insurance you’ve been pitched in the past, there are many life insurance options that are low-cost and provide plenty of coverage for the years you need it.
Read to learn about life insurance for dentists.
1. Types of life insurance for dentists 2. What to look for when shopping for life insurance 3. Special considerations for dentists 4. Where to find life insurance for dentists
Types of life insurance for dentists
There are several main life insurance plan options for dentists. Each one functions differently, with varying coverage amounts, eligibility requirements and premiums.
Here’s a basic overview of the different types of life insurance for dentists.
Term life insurance
Life insurance is meant to be a financial safety net for your loved ones when you’re gone. But you don’t necessarily need it for a lifetime.
You need life insurance when other people are dependent on you for income. That might be your spouse and your kids at this stage, plus another 20 to 25 years give or take. At that point, your kids should be financially independent and your major expenses (e.g. mortgage and other debts) should be paid off with a nice retirement nest egg to live off.
Download the Best Student Loan Calculator
Therefore, you typically only need life insurance for a limited time. With a personal term life insurance policy, you choose the amount of coverage and the number of years you want to be covered.
Your monthly premium will vary depending on a number of factors (e.g. your age, coverage amount, term length, health history, etc.). But you can generally find term policies for less than $50 per month. As an example, I pay $16 per month for $500,000 in coverage.
If you aren’t sure where to start, we recommend getting a quote for a 20-year term that’s 10 times your income.
Bottom line: Term life insurance is a straightforward product that’s easy to qualify for. It comes with affordable monthly rates and large coverage amounts for the stage of life you need it the most.
Group life insurance
Group life insurance is typically offered by an employer or large-scale organization and functions as a term policy.
If it’s an employer-sponsored plan, it’s likely offered as a free or subsidized benefit that covers a set amount (e.g. $50,000) or one to two times your salary. However, coverage ceases once you’re no longer employed with the company.
Due to the nature of the profession, many dentists are left to find life insurance coverage on their own. Therefore, some professional associations offer group life insurance as a perk of being a member.
For example, the American Dental Association (ADA) offers several types of life insurance for its large network of dentists.
However, unlike with an employer-sponsored plan, you can expect to pay premiums with a group plan provided by a membership association.
Bottom line: If you’re part of a professional organization, it might be worth checking your insurance options and rate. However, you might not have sufficient coverage with a group plan, depending on the policy.
Permanent life insurance
Unlike term, permanent life insurance doesn’t expire as long as you pay your premiums. There are different types of policies that fall within this permanent umbrella, such as whole or universal life insurance.
There are many nuances to this type of insurance, making it a complex financial product that is often sold as a “good investment” apart from offering a payout to your family when you pass away.
But these types of policies typically cost hundreds of dollars a month (or more), have low actual rates of returns and are plagued with huge sales commissions. Although there might be rare cases where permanent life insurance makes sense, generally speaking, there are much more efficient ways to invest your money.
Plus, most whole life insurance policies are canceled within the first few years. In which case, that’s not an investment, that’s a money pit.
Bottom line: If you don’t understand the life insurance policy you’re buying, you’re likely getting taken advantage of whether you or the sales agent realize it or not.
What to look for when shopping for life insurance
If you’re receiving a lengthy spiel about the investment benefits of your life insurance policy, it might be time to exit the conversation and look on your own.
Finding the right life insurance policy shouldn’t be super complicated. As you explore life insurance options, focus on these key areas:
- Policy term. This is how long your plan will cover you for. If you have young children or a spouse, you’ll want to make sure they are sufficiently taken care of until they can provide for themselves.
- Coverage amount. How much will your family receive if you pass away? If you’re relying on your employer-sponsored life insurance, you might be dangerously uninsured.
- Premiums. Life insurance shouldn’t cost the equivalent of a car or mortgage payment. Compare premiums to find a rate that fits into your budget.
- Fees and commissions. Look at who is selling you the policy and how they are ultimately benefiting from it.
You can also look at other determining factors, like whether policyholders are required to complete a medical exam and options to renew or extend your policy.
Special considerations for dentists
Dentists often have higher incomes than other professions. But they also tend to have larger expenses, including higher mortgage and car payments. So, it’s important that you factor in all future expenses that your spouse or dependents might incur if you were to pass — especially if you want them to maintain a similar lifestyle.
Some questions to ask yourself:
- Does your spouse currently work? Could they secure or maintain adequate income as the sole provider?
- How much money is needed to pay off your mortgage and other debts?
- How much financial security is needed to avoid uprooting your family’s life if you’re no longer around?
- Are you planning to cover the cost of college tuition for your children? If so, do you have adequate savings for their college savings accounts?
These are just a few of the in-depth scenarios you’ll need to explore to allow your family to maintain the lifestyle you envision for them.
Do you need to increase life insurance coverage for your student loans?
Many dentists have high six-figure student debt that takes years to pay off. In most cases, like with federal student loans, your student debt will be canceled in the event of death. But it isn’t always the case if you have private student loans..
If you have private loans or if your spouse cosigned your loans, you’ll need to review your contract or speak with your loan servicer to determine if they’ll be discharged.
Most private student loan companies will cancel the debt. But if they won’t, it’s better to increase your life insurance policy to cover the cost of your student debt.
Where to find life insurance for dentists
Not all insurance carriers and plans are created equal. Shop around with multiple insurers to find the best coverage and value for your specific situation.
Start your search with our insurance marketplace to quickly locate life insurance plans and rates for dentists.
Get a Student Loan Plan Refinance student loans, get a bonus in 2022 1 Disclosures $1,050 BONUS1 For 100k+. $300 bonus for 50k to 99k.1 VISIT LAUREL ROAD Variable 1.89-5.90%1 Fixed 2.50-6.00%1 
2 Disclosures $1,050 BONUS2 For 100k+. $300 bonus for 50k to 99k.2 VISIT COMMONBOND Variable 1.98-7.14% APR2 Fixed 2.49-7.04% APR2 
3 Disclosures $1,000 BONUS3 For 100k or more. $200 for 50k to $99,9993 VISIT EARNEST Variable 1.74-5.64%3 Fixed 2.44-5.79%3 
4 Disclosures $1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4 VISIT SPLASH Variable 1.74-6.52%4 Fixed 1.99-6.25%4 
5 Disclosures $1,275 BONUS5 For 150k+. Tiered 300 to 575 bonus for 50k to 149k.5 VISIT ELFI Variable 1.86-6.01%5 Fixed 2.47-5.99%5 
6 Disclosures $1,000 BONUS6 For $100k or more. $200 for $50k to $99,9996 VISIT SOFI Variable 1.74-7.24%6 Fixed 2.49-7.59%6 
7 Disclosures $1,250 BONUS7 For $100k or more. $100 to $350 for $5k to $99,9997 VISIT LENDKEY Variable 1.90-5.25%7 Fixed 2.49-7.75%7 
8 Disclosures $1,250 BONUS8 $350 for 50k to 100k8 VISIT CREDIBLE Variable 1.74-7.58%8 Fixed 2.15-7.83%8 Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation of whether you should pursue PSLF, IDR forgiveness, or refinancing (including the one lender we think could give you the best rate).
Take Our QuizOriginal Article