As a member of Dentists’ Provident, your client receives a share of our financial surpluses, which accumulate in their bonus account for when they retire.
The number of shares they hold has a key role in the size of their bonus account. Our shares don’t have a value in their own right, unlike a stock market share which increases or decreases in value. Our shares simply give them the right to our financial surpluses, and how much they receive, depends on the number of shares they hold.
Your client must hold at least one share. After they have had our dentists’ income protection plan for at least two years, they can increase their shares depending on their level of cover, up to a maximum of 3,000 shares. If, in the future, their financial circumstances change, they can change their shareholding before their plan ends, within these limits, by simply writing to us.
If they decide to continue their membership on our retired dentists' plan then, just before their dentists' income protection plan ends, they will have a final opportunity to increase their shareholding to the maximum available under their dentists’ income protection plan. However, once they join our retired dentists’ plan, they cannot increase their shareholding, they can reduce it at any time. See retiring from dentistry to find out more.
Your client can normally only access their bonus account when their plan ends. However, if they are over 50, and they decide to retire early and cancel their plan, they can access it without a penalty.
With our retired dentists’ plan, they have complete access to their bonus account and can take funds out whenever they choose.
If they take the funds when their plan reaches its end date or if they hold our retired dentists’ plan, then they would also qualify for a terminal bonus.
Yes, your client can cancel their plan before its end date, and take their funds early. However, in most cases this will result in an early surrender penalty, which is equal to the bonus we gave them in the last two financial years. They will not receive anything if they cancel their plan within two years of its start.
In exceptional cases, we also allow members to access their bonus accounts early without cancelling their plan.
Every year we add a dividend to your client's bonus account, based on their shareholding during the year. We also credit their bonus account with interest, based on the performance of our investments. The dividends and interest accumulate over their membership and are available to them when their plan ends.
Depending on our financial performance over their membership, they may also receive a terminal bonus.
Although we aim to provide a smooth rate of growth, ironing out fluctuations in investment returns, we do not guarantee our future rates of dividend, interest or terminal bonus. The rates are reviewed regularly and can change without notice.
Over the last five years we have returned £52.3 million to our members in bonuses and benefit payments.
For further information, please read the key features of our dentists’ income protection plan and our rules.