Disability Insurance

[North80]

Hi Everyone,

I just started practice and am looking into purchasing individual disability insurance. Anyone have any advice on what to look for in a plan? Any recommendations as far as good providers?

Thanks!

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[MR Insurance]

North 80 -

Based on your statement of “just starting practice”, I am assuming that you are fairly young which will certainly impact the recommendations made.

First comes first…
The term True Own-Occupation (which I’m sure you’ve heard of) refers to a specific version of the definition of total disability. It means that the insurance company will pay benefits if you are unable to perform the material duties of your specific occupation, even if you decide to work in a different capacity. For a physician, this is a MUST.

Non-Cancellable means that the insurance company cannot change the policy, or increase the premiums for the entire guaranteed period (typically to age 65), so long as the premiums are paid on time.

Residual disability benefits cover partial disabilities… Since 80-90% of long-term disability claims are due to illness and illnesses don’t just appear over night, it is important to cover the periods of time where a loss of income is present but not under total disability guidelines.

Depending on your current income level and income potential, you may want to consider the Future Purchase Option. This is an optional rider (costs extra) that guarantees your ability to increase your benefit in the future, without requiring additional medical screening.

Cost Of Living Adjustment benefits are worth considering because of your young age. As you get older, the COLA becomes less valuable, since there is lower risk of purchasing power. This rider increases your benefit throughout a disability claim. Only beneficial if you ever go on claim.

As a first year physician, you will qualify for Special Limit Programs, which enable you to obtain specific benefit amounts, regardless of your current income. For your specialty, you will likely qualify for $6,500-7,500 / month of benefit. However, if you are not provided group coverage and have a higher income, you may qualify for a higher benefit.

There are a number of companies offering quality coverage in today’s market. For example: Guardian, MetLife, Union Central, Principal, The Standard, Mass Mutual. There are also policies available through some professional associations, but you should be aware that many of these options are not as comprehensive as individual coverage.

I don’t want to put too much attention on discounts, but they are definitely out there. Ask the agent you work with, as the options will partially depend on your situation.

Good luck! Post specific questions, if you have them. This topic has been discussed many times before.

 

[North80]

Thanks, MR Insurance.

Does "True-Own Occupation" discriminate between ophthalmology and other medical specialities?

In other words, if I am unable to perform surgical ophthalmology, will a plan with "True-Own Occupation" provide coverage even if I am physically able to perform the duties of another non-surgical medical specialty such as family practice?

 

[MR Insurance]

Thanks, MR Insurance.

Does "True-Own Occupation" discriminate between ophthalmology and other medical specialities?

In other words, if I am unable to perform surgical ophthalmology, will a plan with "True-Own Occupation" provide coverage even if I am physically able to perform the duties of another non-surgical medical specialty such as family practice?

Not only is it specific to your duties as an ophthalmologist, but it will actually continue to pay you benefits even if you do decide to go into a different specialty, like family medicine.

 

[cme2c]

The AAO does work with a company to provide a disability policy. You can check the site.

 

[orbitsurgMD]

Hi Everyone,

I just started practice and am looking into purchasing individual disability insurance. Anyone have any advice on what to look for in a plan? Any recommendations as far as good providers?

Thanks!

Northwestern.

 

[MR Insurance]

Northwestern.

Regardless of how a company markets their product, you must be sure that you truly understand the various provisions of a policy, especially the definition of disability. The company mentioned above does not offer a true own-occupation definition, but rather a modified own-occupation definition, which is not as favorable.

Ask a disability insurance attorney which definition is the best for a physician and you will get the same response from all of those who work with physicians… True Own-Occupation for the life of the policy, preferably even lifetime.

All that said, the best disability insurance policy a doctor can own is the policy that is in-force and pays benefits when a disability actually occurs. Therefore, something is better than nothing.

 

[tkim]

Any DI providers that will cover physicians with sleep apnea using CPAP?

 

[DrDISpecialist]

Any DI providers that will cover physicians with sleep apnea using CPAP?

Sleep apnea can be a little tricky but yes, most carriers will offer coverage depending on the circumstance. If treatment has been regular and CPAP is used religiously with follow-up appointments, then you can get approved. It might not be preferred rates, but at least you'll get something. You can request preliminary underwriting from a lot of companies to find out what their policy.

 

[DrDISpecialist]

Regardless of how a company markets their product, you must be sure that you truly understand the various provisions of a policy, especially the definition of disability. The company mentioned above does not offer a true own-occupation definition, but rather a modified own-occupation definition, which is not as favorable.

Ask a disability insurance attorney which definition is the best for a physician and you will get the same response from all of those who work with physicians… True Own-Occupation for the life of the policy, preferably even lifetime.

All that said, the best disability insurance policy a doctor can own is the policy that is in-force and pays benefits when a disability actually occurs. Therefore, something is better than nothing.

I agree with Mr Insurance. Having true own-occupation coverage for the life of the policy is going to be your best option, especially for specialty physicians. Northwestern's policy doesn't offer true own occupation (or at least for more than two years).

Oftentimes someone might have health issues and cannot get individual coverage or if they can it is a modified contract. What matters most is that you at least have something, but if you're healthy then get a good policy in place while you can. We're only getting older and health typically isn't getting any better.

 

[MR Insurance]

Any DI providers that will cover physicians with sleep apnea using CPAP?

As mentioned above, you might get approved, but I would expect an exclusion for sure. Understand that the insurance companies will want to limit their exposure on a condition that is already known.