I’ve just heard about a dentist who won’t go on holiday because it ‘costs’ him around £3,000 a week in lost income. He sends his family off for a few weeks and just carries on working.
Let’s save the ‘quality of life’ discussion for another day and look at the purely financial aspects of this person’s life.
The man’s overheads for his practice: staff, leasing costs, utilities, phone and internet, rent and so on, are substantial and he feels he can’t take his foot off the pedal because he needs the income to keep the practice going.
Clearly, this person is driven and the viability and success of his business is paramount. But he’s not invulnerable.
If he can’t work because he’s taken ill or has an accident what will he do?
Most people in business have Income Protection (IP) which, in this instance, would pay around 2/3rds of his income if he is ill or has an accident – enabling him to meet his mortgage, school fees and the family’s living expenses.
But what about his practice? How does he keep that going?
It seems many dentists don’t realise they can insure themselves against accident and illness, being summoned for jury service or, worst of all, being suspended from practice. The policy would pay their practice overheads for up to a year – helping to ensure there’s a business to come back to.
For this dentist, a policy providing £3,000 a week for up to a year, if he can’t work for at least 2 weeks, would cost a tax-relievable £2,000 a year.
Less than a week’s income … it’s got to make sense.
Go online for a quote or phone for details: 023 8051 3286.
The opinions presented in this blog are solely those of the author on behalf of Practice Cover Limited and they do not constitute individual advice.
