Top Six Disability Insurance Policy Features for Physicians
Physicians today have a number of options when it comes to purchasing an individual disability insurance policy.
Contrary to common perception, there are many companies marketing disability insurance to physicians and the burden of selecting the best policy is on the interested consumer.
Below is a list of the top six policy features for physicians to be aware of.
Definition of Total Disability: Every insurance company uses a different definition of total disability, therefore making it very important to understand the differences.
For physicians, the most favorable definition is "own-Occupation", which means an insurance company will pay benefits if you are unable to work in your own specific occupation, even if you are working in another capacity.
Residual Disability: Since not all disability claims are total, a quality long-term disability policy should also provide benefits for partial disabilities and partial loss of income.
If an injury or illness prevents you from earning at least 80% of your regular pre-disability income, your policy should provide partial benefits.
Non-Cancellable: To avoid having any changes made to your disability insurance policy pricing, it must be non-cancellable and guaranteed renewable.
This provision prevents the insurance company from making changes to pricing or policy provisions, so long as you pay your premiums on time.
Base Monthly Benefit: This is the benefit amount that is payable each month an insured qualifies for benefits, following the elimination period.
It is important to confirm your benefit is considered "base" benefit, as base benefits are completely independent and will not be reduced by benefit from social security or other government programs.
Future Increase Option: This provision is available as an optional rider and is especially important for physicians in residency or who expect a significant increase in income in the future.
It guarantees a physician's ability to increase his/her monthly benefit in the future, without requiring medical screening.
Mental/Nervous Benefit Limitations: Many insurance carriers offering disability insurance to physicians have implemented a 24-month benefit limitation for disabilities related to mental/nervous conditions.
You should be aware that this is not necessarily the case with every insurance company, depending on your state of residents.
It is important to understand that in purchasing disability insurance, you are purchasing a legal contract between you and the insurance company.
Before purchasing a policy, you should review the contract language and be sure that it provides you the appropriate level of income protection.
Contrary to common perception, there are many companies marketing disability insurance to physicians and the burden of selecting the best policy is on the interested consumer.
Below is a list of the top six policy features for physicians to be aware of.
Definition of Total Disability: Every insurance company uses a different definition of total disability, therefore making it very important to understand the differences.
For physicians, the most favorable definition is "own-Occupation", which means an insurance company will pay benefits if you are unable to work in your own specific occupation, even if you are working in another capacity.
Residual Disability: Since not all disability claims are total, a quality long-term disability policy should also provide benefits for partial disabilities and partial loss of income.
If an injury or illness prevents you from earning at least 80% of your regular pre-disability income, your policy should provide partial benefits.
Non-Cancellable: To avoid having any changes made to your disability insurance policy pricing, it must be non-cancellable and guaranteed renewable.
This provision prevents the insurance company from making changes to pricing or policy provisions, so long as you pay your premiums on time.
Base Monthly Benefit: This is the benefit amount that is payable each month an insured qualifies for benefits, following the elimination period.
It is important to confirm your benefit is considered "base" benefit, as base benefits are completely independent and will not be reduced by benefit from social security or other government programs.
Future Increase Option: This provision is available as an optional rider and is especially important for physicians in residency or who expect a significant increase in income in the future.
It guarantees a physician's ability to increase his/her monthly benefit in the future, without requiring medical screening.
Mental/Nervous Benefit Limitations: Many insurance carriers offering disability insurance to physicians have implemented a 24-month benefit limitation for disabilities related to mental/nervous conditions.
You should be aware that this is not necessarily the case with every insurance company, depending on your state of residents.
It is important to understand that in purchasing disability insurance, you are purchasing a legal contract between you and the insurance company.
Before purchasing a policy, you should review the contract language and be sure that it provides you the appropriate level of income protection.