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Disability 

Whether you are getting a new physicians’ disability insurance policy or have had one for 20 years, it is always a good idea to make sure you are getting the best physicians’ disability insurance for your specific needs. The fact is, a few words can mean the difference between getting your full disability coverage, and getting nothing. Here are a few key disability insurance definitions to consider:

Own Occupation Disability Insurance

Under this coverage, if you are unable to work in your medical specialty, full benefits are payable even if you are working in a different occupation. Consider disability insurance for a physician specializing in anesthesiology. If you were to develop hand tremors and rendered unable to perform your job, own occupation disability insurance would provide you with disability insurance benefits while you were not working. Furthermore, if you decided to pick up a new profession, or re-train in another medical specialty, you would continue receiving the SAME amount of benefits, regardless of your new income. This is true whether your new occupation is in the medical field or not.

Own Occupation Not Engaged Insurance

This is similar to Own Occupation. Under this coverage, if you are unable to work in your medical specialty you are eligible to receive full benefits while you are not working at a different occupation. However, in this scenario, if you choose to work in another profession, your monthly benefit will adjust in proportion to your new income level, i.e. if your new income is at 50% of your previous income, then you will only receive 50% of your original monthly benefit. If your new income is at 25% of your previous income, then you will  receive 75% of your monthly benefit. For instance, consider a monthly benefit of $10,000 per month. If the income in your new profession becomes $2,500 (or 25% of your original income), your adjusted monthly benefit would then be 75% of the original $10,000, i.e. $7,500.

Limited Own Occupation

This is the most basic type of Long Term Disability Insurance. Under this coverage, if you are unable to work in your medical specialty, full benefits are payable for a limited period of time. Typical coverage lasts around two years. After this time, in order to continue receiving coverage, you must be unable to work at ANY occupation for which you are “reasonably suited.” This type of coverage is prevalent in most group policies, such as hospital group disability policies, which are typically provided for all employees. Likewise, the Own Occupation Definition is most common in most medical association plans (i.e.: ACR, ACOG, AAFP, AAEP, ACP, ACS, or AAP). People in this scenario are likely to seek additional disability insurance for supplemental coverage.

Of these three types of policies, the most sought after is Own Occupation Disability Insurance as it clearly provides the most financial stability. However, even this plan requires some important considerations. The core of all policies hinge upon the definitions of your ability to do your job, and therefore, the definition of the specific duties that are required to perform your job. This is where one can encounter the “fine print.”

There are over 130 medical specialties and sub-specialties listed in the American Board of Medical Specialties. However, many long-term disability insurance policies may view physician specialists more broadly as medical doctors and define them in that broader term. Some policies only recognize a very small number of these and even more policies simply recognize the generic activities of general physicians rather than protecting the specific procedures they actually perform in their medical specialty. Here is where the danger lies.

Disability insurance is intended to protect you during your working years if you are too sick or injured to work. The benefits will pay you a monthly sum, so you can pay your expenses. Physician disability insurance policies also could have a catastrophic disability rider that will pay additional benefits if you are not able to perform activities of daily living. Most disability policies expire at age 65, although you can now get benefits paid to age 67 or 70 as well.

Although most of us are aware of the need for health insurance coverage when determining our risk-management needs, many of us fail to consider the possibility that we could become disabled. A disability income insurance policy can help replace income lost because of an injury or illness. Few people would have an adequate “war chest” for an extended battle with a loss of income.

Unfortunately, many of us will need disability income protection before we retire. Without the appropriate coverage, disability could spell financial disaster.

Disability at any age can disrupt income while medical expenses mount. Unless you have a battle plan, the effects of even a short-term disability could be financially debilitating and emotionally devastating.

In the event that you become disabled and are unable to work, the benefits provided by disability insurance can help replace a portion of your earned income. The appropriate amount of disability coverage will depend on your particular situation. However, there are a few issues you may want to consider.

First, consider carrying enough coverage to replace at least 60 percent of your earnings. Many companies limit benefits to between 50 percent and 80 percent from all sources of disability income prior to the disability. This would mean, for example, that the amount of any Social Security disability payments you receive could be deducted from your benefit amount.

If you are concerned about the cost of a private disability insurance policy, consider extending the waiting period, which is the time between when the disability occurs and when you start receiving benefits. Choosing a 90-day or 180-day waiting period (instead of 30 days) may help lower your premium.

Be sure to compare and review policy benefits carefully. Disability insurance can be an affordable way to help protect your assets in the event of a disability.

An unexpected illness or injury could temporarily or permanently disable you and prevent you from working in the profession you chose. A physician disability insurance contract that protects you in your specialty is vitally important. Not all policies do this!

Our experience and knowledge of doctor disability insurance is unmatched in the industry. We will help you understand the various policy options and features and help you choose the best policy that will protect your income in your specific specialty, whatever and however specific that specialty is.

Disability Income Insurance

One might assume that most serious disabilities result from a sudden, unlucky accident. Surprisingly, 90% of all disability claims are for common health conditions such as cancer and back problems.

Disability insurance replaces a portion of lost income, up to policy limits, if a debilitating injury or chronic illness prevents a breadwinner from working. This type of protection can provide a lifeline for people who may otherwise be unable to support their families, but it can be just as critical for older and/or affluent workers during their peak earning years.

Because the benefits paid from an employer’s group plan, workers’ compensation, or Social Security probably won’t come close to replacing a six-figure income, well-paid professionals in the midst of productive careers generally have much to lose if they experience a disability and are unable to work. Individual disability income policies offer additional coverage and special features that can make them appropriate for highly compensated workers and professionals with special skills.

Buy-Sell Agreement

A buy-sell agreement is an arrangement between two or more parties that obligates one party to buy the business and another party to sell the business upon the death, disability, or retirement of one of the owners.

Disability Office Overhead Insurance

If you were unable to work due to a serious illness or injury, what would happen to your business? Overhead expenses would continue: rent/ mortgage, utilities, malpractice insurance, equipment payments, salaries to key employees, etc. How would you pay for these expenses while disabled when revenues have been reduced or stopped? At the very least, your physician disability insurance coverage should pay for the basic overhead needs to keep your business running, while still providing you some income to offset your loss due to disability. You can have peace of mind that these overhead expenses will be covered with Business Overhead Disability Insurance coverage. This policy is designed specifically to pay for business overhead expenses to keep your private practice from suffering while you are on disability, and the premium is 100% tax deductible as an ordinary business expense.