The 2008 claim statistics for Dentists’ Provident Society’s income protection are available and make useful reading for all dentists.
If you are a dentist, it’s likely that you’ve taken out income protection insurance (also referred to as permanent health insurance). In fact, you may have even claimed on your policy.
During the last few years many of the leading insurers have been releasing their claim statistics for critical illness cover and income protection. This information is very useful to know as it gives you an insight to what policyholders are claiming for, and also peace of mind in knowing that the insurance actually pays out!
Established in 1908, Dentists’ Provident Society is the leading provider of income protection insurance to dentists in the UK and Ireland.
They serve over 13,000 members and as they specialise in dealing with members of the dental profession they have been able to compile detailed information to demonstrate the value of income protection insurance.
Let’s look at the statistics from DPS for 2008.
Highlights:
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DPS paid claims totaling £3.2m (up from £2.7m in 2007)
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On average, they paid 141 claims each month (126 in 2007)
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The largest claim in 2007 amounted to £35,355 (average £1,911)
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On average, 13% (1,693) of their insured members claimed benefits in 2007 (3 more than 2007)
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The average age of claimants was 43 (44 in 2007)
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The average duration of short term claims in 2008 was just over 2 weeks (was just under 3 weeks in 2007)
Let’s look at some examples of claims in 2008:
- Male – age 38 at start of claim – Vertebral disk degeneration -35 years claim duration – £37,746 paid (to end 2008)
- Male – 30 – Heart Disease – 12 years – £85,176
- Female – 38 – Repetitive Strain Injury – 8 days – £800
- Female – 46 – Road Traffic Accident – 12 days – £600
- Female – 40 – Depression – 8 years – £35,568
- Male – 45 – Influenza – 9 days – £1,800
As you can see, the reasons for claims are varied, and many of them would not have been eligible for a claim under a critical illness policy.
The good news is that as DPS are a mutual organisation, they do not have any shareholders and are run solely for the benefit of their members. Their claims philosophy is based on the principles of fairness, honesty and sympathy. In fact, out of the 1,693 claims in 2008, only an additional 3 resulted in being a claims-related complaint and one was referred to the Financial Ombudsman Service.
Key Considerations
The majority of dentists that we meet do have income protection in place. It’s a crucial form of personal protection that you should consider if you don’t have it yet.
If you don’t have cover, the key question to ask yourself is: “what would happen if your income ceased for a lengthy period from tomorrow?”
It happens, so don’t leave it to chance.
Note: We have used Dentists’ Provident Society as an example to illustrate income protection claims. There are several providers for income protection, so make sure you do your research into which provider will be best for your individual circumstances.
Action Point
If you want to find out how to get the right type of income protection cover, contact us
All conversations are in strict confidence and without obligation.
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