Specialist insurer Dentists’ Provident, looks at the changes affecting dental professionals and why now could be a great time for advisers to reassess their financial needs.
Covering around 72,000 individuals in the UK1, the dental profession is vast, but has changed significantly over the years. Last year, NHS England introduced long-awaited changes to its dental contract – nearly 16 years since it was last reviewed.
The planned changes have triggered considerable debate and could lead to significant changes within the profession. With an industry facing changes at many levels, many dental professionals look set on reviewing how they work.
The impact on pensions and sick pay
With many dentists considering the future of their NHS contracts, the impact on their NHS sick pay and pension could be profound.
“With all these changes affecting the dental profession, your clients are likely to need greater advice and support. It opens many options on building for the future. For example, with the potential absence of NHS sick pay and ill health pension, the relevance of income protection policies becomes even greater. Loss of income because of an illness or injury can wreak havoc with your clients’ financial plans if they are not adequately covered,” says Peter Dunn, Head of Intermediary Relationships at Dentists’ Provident.
More than 150 million working days were lost in the UK due to sickness absence in 2021, but only 6% of adults in the UK have income protection2. The Financial Lives 2022 Survey also found that 60% of all UK adults are finding it a heavy or somewhat heavy burden to keep up with their bills3.
Making proactive contact
“With all the contract changes happening for the dental profession specifically, combined with economic uncertainty and ongoing cost of living challenges – protecting your clients’ most important asset – them, and their ability to work and earn an income, is of more importance than ever. By pro-active engagement, you will not only pre-empt changes to their financial circumstances, but also provide timely support and reassurance regarding their financial plans and the products they hold,” continues Peter Dunn.
Peter was an IFA for more than three decades before joining Dentists’ Provident and saw first-hand the value of income protection for his clients.
“Income protection has been at the front and centre of my clients’ protection suite, as a product directly addressing the need for both short and long-term security if the worse were to happen,” he adds.
Latest figures from Dentists’ Provident, a leading income protection provider for dental professionals, show that short duration illness and accidents remain a major source of disruption for dental professionals.
Dentists’ Provident 2022 claims
In their recent claims report Dentists’ Provident showed 99.1% of new claims received a payment.
In 2022, Dentists’ Provident paid out £5.6m to members and received nearly 60% more new claims compared to the previous year. The largest amount paid to an individual claimant was £62,430 and whilst the majority of the claims paid were to those aged 46-55 years-old, the youngest claimant was a 27-years-old dentist.
“Our 2022 claims experience shows how important immediate cover is. Last year we saw an almost 60% increase in people making a claim compared to the previous year, most of this was due to COVID claims. Thankfully for our members, the vast majority of infections have been less severe, and of a much shorter duration than previous years” says Farrukh Mirza, CEO of Dentists’ Provident.
Simon Elliott, Chief Risk Officer adds: “We take pride in our personalised and thorough underwriting, giving members confidence they have a dependable income protection plan that works for them. In 2022 we have had one of the highest level of claims but without a corresponding increase in complaints. It is easy to attribute our success solely to our people and our processes but none of this would be possible without our members, who have been incredible.”
The report also shows that musculoskeletal disorders (23%), psychiatric disorders (12%) and accidents (12%) continued to remain as other significant reasons for claims.
There are many examples of where the income protection plans helped members, many of which Dentists’ Provident have helped from early on in their careers.
Other circumstances to consider – especially early on in careers
“In my time as an IFA, I quickly realised that big changes often happened early in my clients’ careers. From changing employment patterns, acquiring dental practices to incorporating their businesses, there were many points when a discussion and evaluation of financial products and plans was invaluable in ensuring my clients met their long term financial objectives,” says Peter Dunn.
In today’s environment, with dentists taking on more private work and becoming incorporated, it is essential to regularly check in with your clients to ensure their circumstances haven’t changed, and their cover is up to date, with a provider who recognises the changing patterns with the dental profession.
“In my experience, Dentists’ Provident have a refreshing approach,” says Peter. “They always look at the whole picture and rather than take a mechanical approach, go to great lengths to understanding their customer’s health, professional and financial circumstances when assessing applications or claims, to ensure an equitable outcome.”
So, take the time to help your clients think about their future – now more than ever.
About Dentists’ Provident
Dentists’ Provident is a leading provider of income protection insurance for dental professionals. Since 1908 our sole objective has been helping them achieve financial security during periods of illness or injury.
We are proud to be a member owned mutual focused exclusively on the dental profession. You remain at the very heart of everything we do and, most importantly, the reason we do it.
We are there when our members need us, from university into retirement.
Click here for more information about Dentists’ Provident.
To find out more about how we can help your clients, contact Peter Dunn or his team on 020 7400 5710 or peter.dunn@dentistsprovident.co.uk
The views expressed in this article are for information only and of the contributors only. Dentists’ Provident, the authors and copyright owners are not responsible for any reliance you place on the information contained above or for any published errors. Dentists’ Provident does not always exercise editorial control over material produced or reproduced in third party publications and/or websites and no responsibility is assumed for such material.
[1] GDC Annual Report and Account 2021
[2] Financial lives survey 2020 page 60/222
