Information about disability insurance for doctors can be found in various places, including on ProtectYourIncome.com. As we specialize in physician disability insurance, I am sensitive to the time constraints most of them have. Therefore, here is a short and to the point course on what features to look for in a disability insurance policy for doctors:
- Own-Occupation Definition of Disability: The best definition protects you in your medical specialty and continues to pay benefits even if you to work in another specialty or occupation. Look for language that includes medical specialty as part of the occupation.
- Residual Benefits: Pays a percentage of the benefit based on your percentage of lost income, if you can work part time or can only perform some of your usual and customary functions, provided you have a loss of income due to your disability.
- Recovery Benefits: Similar to a Residual Benefit but without loss of time or loss of duties requirements. You can be back at work full time, but as a result of your disability, you suffer a loss of income (20% with most companies, 15% with some). You would still be eligible for a partial benefit.
- Future Guaranteed Insurability: This benefit locks in your medical insurability and allows you to increase your coverage to keep up with increases in income. The best definition allows you to exercise all or part of this increase on an annual basis.
- Cost of Living Adjustment (COLA): If disabled, this feature allows for annual increases in your monthly benefit to keep up with inflation. Look for a compounded benefit.
These are the key features that physicians and other professionals should look for in a disability insurance policy. I would add that your policy should be from a strong, financially sound company so you won’t have to worry about benefits being paid, if needed.
I kept this brief due to time restraints. For more information, see:
Disability Insurance for Physicians