Top Ten Crucial Considerations for Doctors When Purchasing Individual Disability Insurance
On Behalf of Disability Insurance Law Group | | Financial AdvisorsAs a doctor, your career revolves around helping others, but have you considered protecting yourself in case of a disability? For medical professionals, an illness or injury can significantly impact your ability to work and maintain your income. Individual disability insurance is essential to protect financial stability, but not all policies are created equal.
Here, our Disability Insurance Law Group attorneys outline the top ten crucial considerations when purchasing individual disability insurance.
One: Own-Occupation Coverage
The most critical feature for doctors is having their own occupation coverage. This means you’ll receive benefits if you cannot perform the specific duties of your medical specialty, even if you can work in another capacity. For instance, if you’re a surgeon and can’t operate but can still work in a clinical or administrative role, own-occupation coverage would still pay benefits.
Two: Adequate Benefit Amount
Your policy should cover enough of your income to maintain your lifestyle if you become disabled. Most individual disability policies cover 60-70% of your income. As a high-income earner, ensure the benefit amount is sufficient to cover your financial obligations, including living expenses, student loans, and ongoing business costs if you own a practice.
Three: Residual or Partial Disability Benefits
A disability doesn’t always mean you can’t work at all. Partial disabilities, such as a back injury or neurological condition, might limit the number of hours you can work or the types of procedures you can perform. Policies with residual (link to Residual blog) or partial disability benefits will compensate for the loss of income if you can work in a reduced capacity.
Four: Non-Cancelable and Guaranteed Renewable
Choose a policy that is non-cancelable and guaranteed renewable. This ensures that your insurance company cannot cancel your policy or increase your premiums if you continue to pay them. Stability in premiums and coverage is vital for long-term protection, especially as your income and practice grow.
Five: Future Increase Option (FIO)
As your income increases, so should your disability coverage. The future increase option (FIO) allows you to increase your coverage amount without undergoing additional medical underwriting. This is particularly useful for younger doctors who expect their earnings to rise significantly early in their careers.
Six: Benefit Period
The benefit period is the time the insurance company will pay disability benefits. While some policies only pay benefits for a few years, others will pay until you reach retirement age (usually 65 or 67). Choosing a more extended benefit period is advisable for doctors, as disabilities that prevent you from practicing medicine can have a lifelong financial impact.
Seven: Elimination Period
The elimination period is the waiting period before your benefits start. A typical elimination period for doctors is 90 days, though some policies offer shorter or longer periods. The longer the elimination period, the lower your premiums, but make sure you have enough savings or other financial resources to cover your expenses during that waiting period.
Eight: Cost-of-Living Adjustment (COLA)
A cost-of-living adjustment (COLA) rider ensures that your disability benefits keep pace with inflation. This is particularly important for doctors, as inflation can erode the value of your benefits over time. With a COLA rider, your benefits will increase yearly to match rising living costs, ensuring you maintain purchasing power throughout your disability.
Nine: Specialty-Specific Definitions
For doctors, especially those in highly specialized fields such as neurosurgery, cardiology, or orthopedics, it’s crucial to have a policy that defines disability specifically for your medical specialty. Ensure your policy represents a disability in your line of work, particularly if your job involves specific skills that could be impaired by injury or illness.
Ten: Discounts for Medical Professionals
Many insurance companies offer discounts for medical professionals. Inquire about available discounts if you’re part of a group, association, or residency program. Doctors often qualify for lower rates due to the stable nature of their profession and higher income levels, which can reduce premiums without sacrificing coverage.
Purchasing individual disability insurance as a doctor is critical in protecting your career and financial well-being. Considering these factors, you can ensure your policy is tailored to your needs. Don’t leave your financial future to chance; secure the right disability insurance today to safeguard your income and lifestyle in the event of an unexpected disability.
Contact Our Disability Insurance Claims Attorney for a Free Consultation
If you already have disability insurance and need to file a claim or appeal a denied claim, call (954)-989-9000 or contact us online to schedule a free and confidential case assessment, and allow our nationwide disability insurance attorneys to put our over 50 years of combined experience to work for you.
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