Insurance Advisory Services at CDSPI has provided this quick initial response to a question submitted by a dentist: Just wondering if anyone else feels 65 is too early for CDSPI to stop all my insurance? Isn’t there a gap in how long people tend to practice these days?
Given the complexity regarding insurance needs when approaching retirement, it might be best that you speak to one of our qualified advisors at Insurance Advisory Services, at 1-877-293-9455 extension 5002 for further discussion.
In our experience, a variety of issues can cause boomer dentists to need to delay retirement – so it’s important for dentists to plan for retirement a number of years in advance. Our qualified advisors provide insight into this planning and work with a dentist’s unique situation well in advance of retirement. This allows our advisors to provide guidance so the dentist’s planning can be designed appropriately to allow a well prepared retirement.
Here are a few considerations regarding insurance in this situation:
- The only CDSPI plan that ends at age 65 for a dentist is long term disability insurance, but this occurs only if a client is on claim. If a dentist is still actively working, their coverage continues under the disability policy to age 70. (Coverage under CDSPI’s separate dental staff plan for hygienists, dental assistants etc. ends at age 65.)
- Premiums for life and disability coverage are step-rated in five-year age bands which take effect January 1st after the insured’s birthday. For example, premium increases take effect on January 1st after a dentist turns age 60, 65 etc. Life insurance coverage continues until age 85 (subject to reductions in coverage if they are on claim).
- CDSPI’s Office Overhead Expense and Accidental Death and Dismemberment plans end at age 70.
There are many things for a dentist to consider when preparing to retire — or for that matter, before any major life event. Our advisors take a comprehensive view of these issues, and consider how personal and professional goals intertwine in order to determine the best steps forward.
For instance, if a client had a need for permanent life insurance, advisors would note that they are eligible to apply for CDSPI’s Term 100 Life Insurance until age 70 – but also point out potential unfavourable implications of waiting until then. In this example, our advisors would be able to recommend whether a dentist should apply for additional insurance coverage before age 65.
Insurance needs can become quite complex as dentists approach retirement, especially since each situation is unique. It might be best that the dentist in question speaks to one of our qualified advisors at Insurance Advisory Services for assistance.
Do you have any particular question on this topic? Do you have any comments or suggestions? Email us at oasisdiscussions@cda-adc.ca
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