Mortgages and protection
How do mortgages work for dentists, and how is protection used to safeguard your lifestyle and career potential?
Mortgages for Dentists
It would be fair to say that dentists are not remunerated in a typical way. From pay schedules, to UDAs, to private splits, sole trader and Limited Company structures—no two dentists are alike.
For early career dentists, an understanding of the growth of your earning potential is important. Many dentists believe that a mortgage would be out of reach for many years until they have built up a number of years of earnings, but often this is not the case.
For established professionals, the question may turn to rental property portfolios, upsizing a residential home, or purchasing a second property.
The crucial step is in how you are presented in the best way to the right lender for your needs.
Income Protection
An often misunderstood, but important shield in your financial plan. Many dentists do not consider what they would do if they could no longer work. Unlike many other professions, as a self-employed dentist, your income would stop from the first day that you couldn’t work. Our work in this area focuses around educating dentists on waiting periods and terms, what own occupation means, and how income protection grows with your career.
Life insurance
Whilst this is a topic no one likes to think about, how would your family be protected in the event you were no longer here? Life insurance is designed to provide a payout in the event of death. There are insurances that exist to match a decreasing mortgage balance, whilst others pay out a level amount. Family Income Benefit is not frequently talked about, but is designed to provide a regular monthly income to help replace the dentistry income that has been lost. Whilst many don’t like talking about it, it is always worth reviewing regularly.