As a dental student or dentist, disability insurance is a critical aspect of your financial plan. In the event that you are unable to work due to an injury or illness, disability insurance can provide you with a source of income to cover your living expenses and support your family. However, it's important to be aware that dentists are often downgraded to a 3A rating from a 4A rating for disability insurance applications, which can result in higher premiums or reduced coverage. Additionally, Manulife announced last year that they will be discontinuing their non-cancellable disability insurance product, which further highlights the importance of seeking professional advice and shopping around for the best value product.

When shopping for disability insurance, it's important to be aware of the different types of coverage available, including the own-occupation rider. This feature is especially important for professionals like dentists because it provides coverage in the event that you are unable to work in your specific occupation due to injury or illness, even if you are able to work in a different capacity. This means that if you are unable to perform the specific duties of a dentist, you would still be eligible to receive disability benefits, which can help cover your living expenses and support your family. It's important to carefully review the terms and conditions of your disability insurance policy, including any riders or endorsements, to ensure that you have the coverage you need in the event of a disability. Working with a professional planner can help you understand your options, evaluate the different products available, and make an informed decision that meets your needs and budget. Don't leave your financial security to chance – take action today to protect yourself and your loved ones with disability insurance that includes an own-occupation rider.

Disability Insurance

As a dental student or dentist, you likely understand the importance of insurance in protecting your financial security. However, it's important to be aware that traditional insurance policies like disability insurance may not cover all of the expenses associated with a critical illness. Critical illness insurance is a type of insurance that can provide you with a lump sum payment in the event that you are diagnosed with a critical illness like cancer, heart attack, or stroke. This type of insurance can help cover the cost of medical treatment, loss of income, and other expenses associated with a serious illness.

• Shared-owned Critical Illness Insurance

As a dentist or dental student, you may also be able to combine critical illness insurance with corporate tax planning by structuring a share-owned critical illness insurance policy that is jointly owned by you and your corporation. This may provide significant tax benefits, including the ability to use the corporate after-tax dollar to pay for most of the premium, receive tax-free benefits in corporation in the event of a critical illness claim, and have the total premium refunded to you personally without attracting additional taxes.

However, structuring a share-owned critical illness insurance policy can be complex and requires careful planning and execution. Working with a professional planner can help you navigate this process and ensure that your insurance and tax planning strategies are aligned with your financial goals and needs. Don't leave your financial security to chance – take action today to protect yourself and your loved ones with critical illness insurance and corporate tax planning strategies that are tailored to your unique situation.

Critical Illness Insurance

As a dental student or dentist, you understand the importance of protecting your financial security and providing for your loved ones in the event of an unexpected tragedy. That's where life insurance comes in – this type of insurance provides your beneficiaries with a lump sum payment in the event of your death, helping to cover the cost of expenses like funeral costs, outstanding debts, and loss of income.

In addition, life insurance can also play a key role in estate planning, allowing you to transfer wealth to your loved ones tax-free and ensuring that your assets are distributed according to your wishes.

When considering life insurance, it's important to choose a policy that meets your needs and provides adequate coverage for your unique situation. A professional planner can help you evaluate your options and select the right policy for your needs, taking into account factors like your age, health, income, and financial goals.

• Term Life V.S. Whole Life

As a dental student or dentist, you may be wondering whether term life insurance or whole life insurance is the right choice for you. The answer depends on your individual situation and financial goals, as well as the phase of your career that you're in.

For dental students or those in the early stages of their career, term life insurance may be the most cost-effective and practical option. This type of insurance provides coverage for a specific period of time, typically ranging from 10 to 30 years, and can be a good choice for those who need coverage for a limited period of time while they build their career and accumulate assets.

On the other hand, whole life insurance provides coverage for the entire lifetime of the policyholder, and also includes a savings component that builds cash value over time. This type of insurance can be a good choice for those in the later stages of their career who are looking for long-term financial security and estate planning benefits.

Ultimately, the choice between term life insurance and whole life insurance depends on your unique situation and financial goals. Working with an experienced planner from Dentistry Enlightenment Club (DEC) can help you evaluate your options and select the right policy for your needs. Don't wait until it's too late – protect yourself and your loved ones today with the right life insurance policy that provides the peace of mind and financial security you deserve.

• Corporate-owned Life Insurance

As an established dentist, you understand the importance of protecting your assets and minimizing taxes. However, recent changes to Canadian tax laws have made it more challenging to balance these priorities. The 2018 tax changes mean that passive income earned by a corporation can impact the small business deduction (SBD) for active income, creating a dilemma for dentists who want to invest in their corporations without eroding their income through taxes.

One solution to this problem is to consider corporated-owned life insurance. This type of insurance allows you to use your corporation to invest in a life insurance policy, which can help grow the value of your corporation without triggering taxes on the active business side.

For example, let's say you are a dentist with a corporation that has excess funds that you want to invest in a tax-efficient way. You can use these funds to purchase a life insurance policy on yourself, with the corporation as the owner and beneficiary of the policy. As the policy grows in value, the corporation can use it as collateral for loans, and the death benefit can be paid out tax-free through a capital dividend account (CDA) without attracting taxes.

Navigating the complex rules and regulations surrounding corporated-owned life insurance can be challenging, which is why it's important to work with an experienced planner from Dentistry Enlightenment Club (DEC). Our team can help you understand your options and make informed decisions that protect your assets and minimize taxes. Don't let tax laws erode your hard-earned wealth – contact us today to learn more about how corporated-owned life insurance can benefit you and your corporation.

• Immediate Financing Arrangements (IFA)

Another strategy that can benefit business-savvy dentists is the Immediate Financing Arrangement (IFA). An IFA allows dentists to use a line of credit to fund their life insurance premiums, without sacrificing the flexibility to also invest in other areas such as real estate or another practice. This approach can help reduce taxes and increase wealth over the long term. According to an article in Advisor's Edge, "IFAs offer a unique opportunity to business owners to meet their life insurance needs without giving up the flexibility to make other investments." The IFA process can be complicated, involving multiple parties such as lenders and insurance carriers. Working with an experienced financial planner at Dentistry Enlightenment Club (DEC) who has successfully executed this strategy for other clients is crucial to ensure its success.

Life Insurance