Truly Independent Disability Insurance for Physicians

You need enough coverage to provide you with sufficient income to live on until you are able to return to work or receive other financial resources (retirement, social security, etc.). The benefits you purchase through a Disability policy is quoted as monthly income that you receive if disabled. Consider your monthly income after taxes, now and in the future, as the base amount you would need. In addition to the monthly amount, an individual needs to consider the length of time you want to collect benefits, and when you would need them to begin.

Yes, but it depends on the type and severity of the medical problems. The insurance company can utilize 3 options:

• Charge a higher premium for the policy
• Exclude the condition from the policy
• Decline insurance altogether

Disability benefits help protect and replace income if you become disabled. It provides benefits that replace a major portion of your salary if you’re out of work due to a qualified illness or injury.

You can use the benefits to help pay for housing or any of your usual expenses — things you might have to cut back on or pay for with savings if you are unable to earn.

1.The type of disability contract: A “non-cancelable” disability contract guarantees that a company cannot cancel a policy or change the rates, as long as you continue to pay the premiums on time. A “guaranteed renewable” disability policy guarantees that the terms of your policy can’t be changed, however premiums may be changed after a certain period (generally 2 to 3 years) and only if the change applies to all policies with similar benefits in your risk class. A third type of contract, often called an “optionally renewable” disability policy, is one that can be canceled by the company at renewal time, and may require you to have periodic physical exams. The contract that guarantees the most generally demands a higher premium.

2.The waiting period: You select the amount of time you will wait before you receive your first disability payment. Generally, the longer the waiting period, the lower the premiums. Typical waiting periods are 30, 60, 90, 180, 365, 730 days.

3.The benefit amount: The amount of monthly benefit you apply for directly relates to your premium. Generally, the higher the benefit, the higher the premium.

4.The benefit period: The maximum length of time benefits will be paid. Your choices are typically 2 years, 5 years or to your normal retirement age. Generally, the longer the benefit period, the higher the premium.

5.Your current health status and medical history: If you have a current health issue or previous injury, you may still qualify. An underwriter looks at each individual application and determines the risk factor. Some pre-existing conditions may be accepted with an exclusion amendment added to your policy (i.e.- a previous knee injury).

This rider can provide a monthly benefit in addition to any other disability benefit payments under the policy if you are catastrophically disabled:

• Unable to perform two or more of the activities of daily living without human standby assistance; or
• Cognitively impaired; or
• Irrecoverably disabled

Underwriting is the process by which an Insurance Company examines, accepts, or rejects insurance risks so as to charge the proper premium for the coverage. The insurance company will review:

Current Insurance Physical
Past medical history (physicians seen, medication taken)
Financial records (pay stub/tax returns – to justify the disability amount applied for)
Telephone Interview

Everyone needs some kind of coverage, which will replace most of their Income in case they cannot work due to disability. When people without Disability Insurance become disabled, Income stops or is reduced, and savings are drained. Some exceptions are those with high levels of investment income, students, or individuals whose spouse continues to provide enough income to cover expenses.

The best time to buy Disability Insurance is when you are young, in training and in good health. This is because eligibility and premium rates are based on your age and how healthy you are. You should buy sooner rather than later as our health tends to deteriorate as we get older.

Long-term disability insurance for residents is essential to any physician’s financial safety and security.