Life Insurance for Dentists

There are about 101,972 dentists working across Canada, making an average salary of $79.75, according to statistics collected by the Canadian Government. The life insurance options needed to preserve the financial future of their families extend way beyond those offered by professional associations.

Below is a breakdown of the individual insurance options available to any dentist working today:

Term Insurance starts off lower in cost and increases as the insured gets older. The term length can vary depending on the policy. As a rule of thumb, the longer the term, the higher the initial premium, but the shorter the term, the lower the initial premium. Most term life policies in Canada are renewable and convertible, which means the insured can renew the coverage without a medical examination, albeit at a much higher premium. It also means that it’s possible to convert the coverage to a permanent plan without a medical examination. Term rates can vary significantly from company to company, and many companies offer preferred rates that can lower the insured’s premium by as much as 30 per cent if he or she happens to be in very good health and has an excellent family health history.

Permanent life Insurance can be subdivided into the following three types:

Term-to-100 Insurance provides level premiums and lifetime protection. Term 100 policies generally do not build a cash value. However, some companies offer reduced paid-up coverage if the insured wants to stop paying. Most Term 100 plans have increased in cost recently due to historically low interest rates, and many carriers in Canada no longer offer Term 100 coverage.

Universal Life coverage offers lifetime protection and flexible premiums. Plus, most Universal life policies come with an increasing cost-of-insurance feature. For example, the cost of insurance starts off lower and increases as the insured gets older. Plans may also include a level cost-of-insurance option, which provides a fixed cost-of-insurance for the life of the policy. Similar to Term 100 coverage, most Universal Life (level cost-of-insurance) policies in Canada have increased in cost as a result of low interest rates.

Whole Life policies can be broken down into Non-Participating and Participating policies. The former offer lifetime protection, guaranteed premiums, and a guaranteed cash value, but do not produce a dividend, while the latter offers fixed premiums, lifetime protection, and guaranteed cash-value and produces an annual dividend. This dividend allows the insured to participate in the profits of their life insurance carrier.

For more details on which life insurance policy is best for you, please contact us at 1-866-899-4849 or visit our Term Life, Whole Life, or Universal Life quote pages

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  • jason
    September 13, 2013 at 11:14 pm

    What is the maxmium coverage I can take out if I have $400,000 poliy and make approximately $125,00 a year

    • LSM Insurance
      September 14, 2013 at 8:58 am

      Thanks Jason. Most insurance companies use a maximum insurance formula of 20 times your annual income or your case $2.5 Million. But this can fluctuate based on your individual circumstance. e.g. mortgage and other debts age of children etc. Your existing policy would be deducted from this amount.

  • LSM Insurance
    January 6, 2012 at 1:50 pm

    Thanks for sharing your insights.

  • Dentist St. Louis
    January 6, 2012 at 12:16 pm

    This is an interesting article. We are a relatively small dental practice in St. Louis, Missouri down in the U.S., and our insurance policies are much different than Canada’s. Really great points here in this article!