TRUE OWN OCCUPATION disability insurance protects you in disability insurance protects you in the event you’re not able to do the duties of your own occupation. You can receive coverage even though you may be able to work in another area of medicine or a different career altogether. Under this definition, if you’re not able to do the duties of your primary occupation, you will be eligible to receive a paycheck from the insurance company. You can receive benefits even if you’re earning an income from working in another specialty or profession.

Non-cancelable & guaranteed renewable: This states that the insurer cannot raise your premiums nor cancel your policy or change the terms and features of your contract as long as you continue paying your premiums.  

Future Increase Option: This provides the opportunity to increase coverage annually without having to provide evidence of good health.  It’s your choice whether or not to apply for additional insurance coverage in any given year.

Partial Disability: Protects you by paying a partial benefit if you suffer an injury or illness that limits your ability to perform certain types of care or procedures but doesn’t cause total disability.

Cost of Living Adjustment: A rider that states the insurance company will increase your benefit to account for inflation.

Catastrophic: Provides extra income replacement funds– if you are functionally impaired or irrevocably disabled.

How to apply for disability insurance and what it costs:

When you choose to purchase a personal policy to protect your future you’re not tied to a particular practice or employer, because individual coverage stays with you as long as you pay your premiums. As these plans are almost always paid for with after-tax dollars, the benefit income they provide is usually tax-free.

A popular rule of thumb is to expect to pay between 2% to 4% of your annual salary for this type of coverage. Much of that variation is depends on the terms and provisions you choose for your policy, including:

Medical School & Hospital Discount programs: often discounted disability programs are offered to students just prior to graduating medical school as well as during residency training.  These discounts can be a permanent part of your policy and may apply to future additions of coverage. Be sure to ask us about the discount programs we offer to academic institutions and hospitals throughout the country.

The benefit amount: The more you receive for each month of disability, the higher the cost of the policy.

The waiting period: If you have enough savings or assets to tide you over, you can lower premiums by choosing a longer waiting period.

The benefit period: The shorter the benefit period, the lower the premiums.

The definition of disability: While not recommended for physicians, if you forego an own-occupation definition, your premiums will be lower.

Optional riders: While some riders may be included at no extra charge, others will add an incremental cost to your plan.  

No matter what terms and provisions you choose, much of your actual policy cost will be determined on by the statistical risk you present to the insurance company. That risk will be analyzed and calculated during an underwriting process that takes into account a number of factors, including: 

Medical specialty: Higher risk specialties are those that perform interventional procedures, such as surgeons, and emergency room doctors; by contrast, GPs tend to be classified as lower risk.

Age:  To obtain the best rates, don’t put off getting insurance coverage, particularly while you are healthy.

Health: Expect to answer questions about your family medical history, pre-existing conditions, tobacco, and alcohol usage.

Finances: Since benefit amounts are calculated as a percentage of your earnings, the insurer will evaluate all your sources of earned and unearned income.

Location: As a rule, insurance regulations, living costs, and income vary by state; these are reflected in your policy costs.

The terms of your disability income insurance contract should be strong and align with what is needed to protect your income. The cost of the contract needs to be affordable. But it also recommended you review the financial strength of the company you choose to protect you throughout your career. Independent financial ratings are considered to lead indicators of a company’s ability to pay claims 10, 20, or 30+ years into the future. Take the time to research the carriers before choosing who will be insuring your greatest asset.

Contract, Cost, and Company are no doubt vital components in the disability income insurance decision-making process. But it is at often at claim time when our clients most appreciate the value of our relationship. Receiving devastating diagnoses or being involved in a debilitating accident are extremely trying times in people’s lives. We know that applying for disability benefits can be daunting, especially for those who bought coverage online without the dedicated care of a trusted advisor. We believe being there for our clients at the time of claim is one of the most critical times in our relationship. We make it a priority to connect with our clients and/or their family members assisting them during this process, and allowing them more time to focus on treatment and recovery.