Disability insurance is important for any working professional, however, it is essential for doctors. Medical professionals work in various fields and their specialties may affect the cost of coverage. However, the main reason doctors need to focus on disability insurance is that their investments into their education put current income potential aside in lieu of future returns. Let’s look at the top three policies available for physicians today.
Companies That Offer Disability Insurance For Physicians
There are a few top companies that offer disability insurance for physicians. Guardian is a top provider as is Northwestern Mutual Disability Insurance. Ameritas has been a leader in disability insurance and MassMutual is well known for its affordable policies. Principal and The Standard are also go-to disability insurance providers, however, there are many other companies to choose from.
Long-Term Disability Policy
A long-term policy is one of the best options for those working in the medical field. The policy will be able to grow with the physician as their job duties expand. A truly effective policy will also have an own-occupation coverage clause which will offer coverage even while you are still working. For example, a physician who specializes in surgery but is unable to perform can claim benefits. This would hold true even if the physician was able to work in other areas of the hospital or as a teacher, so long as they were unable to perform their specialty.
Short-Term Disability Policy
While short-term policies can offer some protection, they are generally not the preferred choice for physicians. However, they are great for providing gap coverage in-between policies or during a change in employment. It is critical that you pay attention to your coverage limits, especially when covered by only a short-term disability insurance policy. Many physicians end up getting short-term disability insurance when they lose access to group coverage through their place of employment. This tends to be the case when a physician switches to a new place of employment, or from a salaried employee to that of an independent contractor.
LTD Policy with Physician Riders
A long-term policy that allows physicians to purchase additional riders is the best option overall. This ensures that those working in the medical field will be able to tailor their policies to their needs and their professions. Adding a rider for retirement protection will help protect your retirement income in the vent that you become disabled. Student loan riders are also important because they will help cover any outstanding payments if you happen to become disabled before they are paid off. One of the most important riders, however, is the future purchase option. Policies that have this rider allow physicians to buy additional coverage as their salaries increase.
Things to Keep in Mind When Buying Disability Insurance
When budgeting for disability insurance, it is important to keep in mind that your specialty will affect the cost of your premiums. Always choose a policy that works best for your situation. For some that may mean sticking with group disability coverage or it may mean taking out an individual policy. Always check the available riders, benefit coverages offered, and elimination period options before making a final selection.
