How do you make sure the right money is in the right place at the right time? Richard Lishman

Planning for worst-case scenarios can be tough and confusing. It is vitally important that your choice of insurance is appropriate for you, but how do you begin to get your head around the multitude of insurance policies on the market?

Some significant types of cover for you to consider might be Income Protection, Business Partner Protection and Life Insurance.

Income Protection safeguards your earnings if you are unable to work due to sickness or injury. Allowing you to insure approximately 65% of your gross salary, it lets you maintain your standard of living should you become sidelined though ill health.

It is important to know that insurance companies describe the level of cover in terms of how ill you have to be before any money is paid out. You should always look for a policy that offers ‘own’ income protections, as opposed to ‘suited’ or ‘any’. This is the only description that ensures an income for the rest of your working life if you are unable to work as a dentist.

As Income Protection defends you against loss of earnings, Business Partner Protection (or Key-Person Assurance) look after your practice and family. For any dentist who owns part of their practice, investing in this type of cover is vitally important.

The death of a business partner or key employee will always have severe implications on any business - equally difficult might be a business partners’ diagnosis of serious illness or disability. In either situation having Business Partner Protection will ensure that should the worst happen, both your family and your business will be protected.

Finally, Life Insurance is fairly straightforward: in the event of your death the insurance company pays out the policy. The difficulties arise in ensuring that your money goes to the right people at the right time. The most effective way of doing this is through a trust, as this ensures the money goes to the people whom you want to benefit from it. Life Insurance companies can often pay a death claim more quickly if the plan is put into a trust and the money paid is even often free of inheritance tax.

With so many options to be aware of, many professionals seek bespoke financial advice in order to avoid acquiring inappropriate levels of cover. Independent Financial Advisers (IFAs) such as those at money4dentists have all the knowledge and experience to ensure you make the right decision for your future.

Whether you already have existing cover or are looking for the first time, ensure you seek out expert advice to guarantee that the best possible plans are in place should the worst happen.

For more information please call 0845 345 5060, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com