Most people want to avoid thinking about getting hurt, but the fact is, injuries and illnesses do happen. The point isn’t to dwell on the negative but to focus on how income may be replaced in the event of an unforeseen health event. Disability income insurance is a way to manage this risk.
While you are in dental school, it’s common to think that you don’t need to worry about things such as insurance because you’re still in training. Some might think that insurance can be dealt with once “real life” kicks in, yet there are some compelling reasons for securing disability income …
In this edition of “Let’s Talk,” Christian Pearson, national director of dental partnerships at Treloar & Heisel, Inc., shares highlights from a conversation with Matthew Krieger, DMD, a practicing oral and maxillofacial surgeon in Dallas.
Is it your big dream to own a practice? Do you imagine what it would be like to run your own business? Maybe being an employee is just not for you. Here are some common misconceptions that students have about money when it comes to starting or buying a practice.
In our work, we see many recent dental graduates with huge debt loads — $300,000, $400,000 or even $500,000 right out of school. They end up in our practice, often overwhelmed with how to pay down their debt. And while most of them know that their income is solid and poised to grow, they still grapple with whether it makes sense to pay off their debt, or to minimize their loan payments and, instead, set aside money for the future.
Your ability to generate revenue is your greatest asset. If something happened to you, it would have a significant impact on your cash flow. Whether you’re just starting your training or you’re already in practice, one of the first things you need to do is protect your ability to earn an income. While health insurance will help pay to get you back to good health, an entirely different type of insurance is required to replace the income you forego while you are unable to work. This insurance is called disability income, or “DI” for short.
When it comes to finances, there are two important areas where a young person can actually do something that has impact on his or her future. The first is to create a budget (yes, you may groan, but it’s true — and be advised that is not the topic of this post). The second is getting smart about your credit score.