Disability insurance is a critical asset for physicians. There are literally millions of dollars on the line for any future or current physician who has most of a career ahead of him or her. If you were to unexpectedly lose your ability to work in the medical profession – either by illness or injury – the financial consequences would potentially be devastating.
So it’s important for physicians to own as much disability protection as they can easily afford. Finding ways to save on disability premiums and get more protection for the dollar has two possible benefits: It saves you money, or you can buy more protection for the same premium dollar. The choice is yours!
5 Ways To Save on Disability Premiums
Here are some great ways to make meaningful disability premiums more affordable for you and your family:
1. Multiple Employee Discounts
When three or more people working for the same employer purchase a disability policy at the same time, each employee can save 10% to 15% (females can save even more!). Larger groups of physicians/dentists may be eligible for even bigger discounts and guaranteed issue disability insurance (no medical underwriting). This means you could still get coverage even if you have a pre-existing medical condition. Some employers will even pay for the coverage as a way to attract and retain valuable employees.
2. Life/Disability Combo Discount
Some companies offer a small discount on disability premiums to anyone who also purchases a life insurance policy.
3. Association Discounts
4. Remove Optional Riders
The cost of living rider is one example. This optional rider increases the monthly disability benefit during a claim to keep the benefits in line with inflation. This is a nice option, but removing it can reduce the disability premium by as much as 15% – 20% with some companies.
5. Extend the Elimination Period
The elimination period is the amount of time that must elapse between when a disability occurs and benefits are paid. Going from 90 days to 180 days can reduce premiums by 10%.
You could also buy into a group disability policy offered through your employer. While not ideal, group disability insurance is better than no disability insurance. Keep in mind though, that with group disability:
What about Group Disability?
You could also buy into a group disability policy offered through your employer. While not ideal, group disability insurance is better than no disability insurance. Keep in mind though, that with group disability:
- Many plans only pay benefits if you are unable to work in any job.
- After benefit reductions and taxes, most group disability insurance plans cover only 30% to 40% of pre-disability income.
- Benefits are not portable if you change jobs.
- Plans and benefits can be changed by the insurance company or your employer at anytime.
Need help? Get a free quote using the button below or give us a call today at 866-899-7318.
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