Disability insurance for dentists in Canada

Dentists have about a 1 in 3 chance of becoming disabled during their clinical careers, making income protection especially important. A disability can prevent a dentist from performing clinical procedures and earning their usual income, while expenses such as student loans, mortgages, and practice costs may continue. The disability insurance benefit will be paid until you return to good health and can resume work or until the end of your disability period, whichever comes first.

Do dentists and dental hygienists need disability insurance in Canada?

Yes, dentists and dental hygienists both need disability insurance. For dentists, a hand tremor, repetitive strain injury, vision change, or back problem can make it impossible to perform precise procedures. For dental hygienists, wrist, hand, shoulder, neck, and back injuries can similarly interfere with repetitive scaling, polishing, and other hands-on procedures. If these conditions worsen, it may even affect the dental career. 

Disability can also create a significant financial impact. Many dentists are self-employed or own dental practices, meaning they may not have access to employer-sponsored sick leave or disability benefits. Dental hygienists are more commonly employees, but their workplace coverage may still have limits on the benefit amount, definition of disability, duration, or portability. Reviewing existing coverage and identifying potential income gaps can help both professionals determine how much additional protection they may need.

What disabilities can prevent a dentist from working?

A dentist may be unable to work because of a physical, neurological, sensory, or mental-health condition. The diagnosis alone does not determine eligibility; the key issue is how the condition affects the duties and requirements described in the policy. Here is a list of these conditions:

• Hand and wrist conditions: Repetitive strain injuries, nerve damage, or hand tremors that affect fine motor skills
• Vision problems: Significant vision loss or eye conditions that make it difficult to perform precise dental procedures
• Neurological conditions: Conditions such as multiple sclerosis, Parkinson’s disease, or other disorders that affect coordination, movement, or concentration
• Musculoskeletal conditions: Back, neck, shoulder, wrist, or hand injuries that limit movement or cause chronic pain
• Mental health conditions: Severe anxiety, depression, burnout, or other mental health conditions that impair concentration or the ability to safely perform clinical duties
• Chronic illnesses: Conditions such as cancer, cardiovascular disease, or other serious illnesses that significantly reduce a dentist’s ability to work
• Infectious diseases: Certain infections or illnesses may require a dentist to stop treating patients during recovery temporarily

How does disability insurance work for dentists in Canada

Disability insurance for dentists replaces 60% to 85% of income and works in the following manner:

• Choose the coverage: Dentists may receive disability insurance through an employer or government-sponsored plans, or purchase an individual policy. Individual coverage can be particularly important for self-employed dentists who do not have workplace disability benefits or want to supplement an existing group plan
• Select a definition of disability: With individual policies, you can choose the definition of disability. An own-occupation definition can be valuable because it focuses on whether you can perform your specific dental duties rather than whether you can work in another occupation
• Complete the elimination period: This is the waiting period between becoming disabled and starting to receive benefits. The waiting period for short-term disability insurance is usually 0-14 days, and for long-term disability insurance, it is 4, 8, 12, 16, 20, or 52 weeks or even 2 years. The available options vary by insurer and policy
• Receive monthly benefits: If the claim is approved, benefits are paid according to the policy terms for the specified benefit period (maximum up to 65 years)

Definition of disability for dentists

For dentists, the definition of disability determines when an insurer may consider an illness or injury severe enough to qualify for benefits. The wording matters because a dentist may be unable to perform substantial duties of clinical dentistry while still able to work in another profession.

Own-occupation:

• Definition: You may qualify for benefits if an illness or injury prevents you from performing the important duties of your specific dental occupation
• Why it matters: A condition such as a hand injury or tremor could prevent you from performing clinical procedures while leaving you capable of other professional work. Depending on the policy wording, you may be able to receive benefits while working in another occupation.

Any occupation:

• Definition: You generally qualify only if your disability prevents you from performing another suitable occupation for which you are reasonably qualified based on your education, training, or experience
• Why it is less favourable: A dentist who can no longer practise clinically but can perform another suitable job may not qualify for benefits under this definition

Types of disability insurance for dentists in Canada

Dentists and dental hygienists may access disability benefits through government programs, employer-sponsored plans, or individual insurance policies.

• Government plans: Dentists who are unable to work because of illness or injury may qualify for EI sickness benefits (coverage up to 26 weeks). EI sickness benefits generally pay 55% of average insurable weekly earnings, up to $729 per week, subject to eligibility requirements. Those with a severe and prolonged disability may qualify for CPP disability benefits that offer a maximum monthly benefit of $1,741.20. The Canadian Dental Care Plan (CDCP) is sometimes confused with disability coverage, but it is a government dental program that helps eligible Canadians pay for covered dental services; it does not provide disability income or replace a dentist’s earnings
• Employer-sponsored plans: Dentists who work as employees may have access to short-term or long-term disability insurance coverage through their employer. Group plans can provide income replacement while a dentist is unable to work, but coverage depends on the employer’s plan and may have limits on the definition of disability, benefit amount, and duration
• Individual plans: Self-employed dentists and practice owners can purchase individual disability insurance to protect their personal income. Individual policies can offer greater control over the policy features and are beneficial for dentists who do not have access to an employer-sponsored plan or want to supplement their employer plans

How much disability insurance coverage do dentists need?

Dentists are generally advised to have a benefit amount equal to at least 60% of their income. In addition, the amount of disability insurance a dentist needs also depends on the existing coverage, practice expenses, debts, and financial obligations.

• Practice expenses: Practising dental owners should consider rent, staff salaries, equipment leases, utilities, and other fixed costs separately from personal income. Practice overhead insurance may help cover eligible business expenses
• Existing benefits: Subtract coverage available through an employer, professional association, EI, or CPP when calculating any additional individual coverage needed
• Debt and lifestyle: Mortgage payments, student loans, family expenses, and other financial commitments should be included when determining the required monthly benefit
• Future income growth: Dentists early in their careers may want a guaranteed future insurability or future insurability rider, allowing them to increase coverage as their income grows without undergoing new medical underwriting

Disability insurance riders for dentists in Canada

Dentists or dental hygienists can enhance their disability insurance coverage through riders such as a future insurability rider, a cost-of-living adjustment (COLA) rider, a residual or partial disability rider, an own-occupation extender rider, and a waiver of premium rider.

• Future insurability: Allows dentists to increase their disability benefit as income grows, without additional medical underwriting
• Cost-of-living adjustment (COLA): Increases disability benefits during a prolonged claim to help keep pace with inflation. The increase may be subject to an index, fixed formula, maximum percentage, waiting period, or cap
• Residual or partial disability rider: Provides benefits when a dentist can return to work but has reduced hours or income because of their disability
• Own-occupation extender rider: Protects a dentist’s ability to perform their specific clinical duties, even if they can work in another occupation
• Waiver of premium: Waives the policy premiums while a dentist meets the policy’s definition of total disability, allowing coverage to remain in force without requiring premium payments during the disability
• Return of premium: Returns a portion of the premiums paid when the policyholder meets the rider’s eligibility requirements. Conditions may include keeping the policy active for a specified period, having limited or no claims, reaching a defined policy anniversary, and satisfying other terms

In addition to the above-mentioned riders, dentists can also consider getting a separate overhead expense benefit that can help dental clinic owners cover costs while they are disabled.