As a doctor, protecting your income is one of the most important steps you can take for your financial future. Disability insurance ensures you have a safety net if an illness or injury prevents you from working. But with so many options, how do you choose the best policy?
Here’s a straightforward guide to help you make the right decision.
1. Look for “Own-Occupation” Coverage
The most critical feature in a disability policy for doctors is an “own-occupation” definition of disability. This means you’ll be eligible to receive benefits if you’re unable to perform the specific duties of your occupation, even if you can work in another capacity.
For example, if a surgeon develops a hand tremor and can no longer operate but decides to teach or consult, a true own-occupation policy can still pay benefits. Without this feature, you might not qualify for coverage if you can work in a different role.
2. Ensure the Policy is Guaranteed Renewable and Non-Cancelable
This feature ensures:
- Your premiums won’t increase.
- Your policy terms won’t change.
- Your coverage can’t be canceled, as long as you pay your premiums.
With some group or association plans, the insurer can change the terms of the policy, like removing the own-occupation feature. A guaranteed renewable and non-cancelable policy locks in your protection for the life of the policy.
3. Consider the Monthly Benefit, Benefit Period and Elimination Period
- Monthly Benefit: Your benefit should replace about 60% of your income. However, for residents or fellows, the cap might be lower, such as $5,000 or $7,500 per month.
- Benefit Period: Opt for a benefit period that lasts until retirement age (typically 65 or 67) for maximum protection. Shorter periods, like 5 or 10 years, are less comprehensive.
- Elimination Period: The elimination period is the amount of time you have to wait after you become disabled before your benefits begin. The most common and cost-effective elimination period is 90 days.
4. Add Key Riders for Enhanced Protection
Riders are optional features you can add to your policy for extra coverage. Some important ones include:
- Residual Disability Rider: Provides partial benefits if a disability reduces your ability to work or earn income.
- Cost-of-Living Adjustment (COLA): Increases your benefit over time to keep up with inflation.
- Future Increase Option (FIO): Lets you increase your coverage as your income grows, without additional medical underwriting.
5. Understand Exclusions and Limitations
Every policy will have exclusions and limitations. Be aware of any conditions or activities that may not be covered. For example, some policies limit mental health or substance-related claims to a specific time period.
6. Work with a Specialist
Choosing the best disability insurance policy can feel overwhelming. An experienced insurance specialist who understands the unique needs of doctors can guide you through the process and help you compare policies from top insurers.
The Bottom Line
The best disability insurance policy for you is one that:
- Provides own-occupation coverage.
- Offers guaranteed renewable and non-cancelable protection.
- Aligns with your income and long-term needs.
Take the time to review your options and invest in a policy that gives you true peace of mind.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
