You Can't Get Disability Insurance After You Are Disabled....

The answer is yes.  Injury and disability can occur anytime and any way.  For example something unexpected, such as a retinal detachment can render you unable to perform the duties of your profession.  But that is just one example.  Sickness due to COVID19 or other infectious diseases; Myocardial infarcts; Strokes; Diverticulitis; Macular Degeneration; Auto injuries; Trauma; Ladder Falls.  These are just a few examples of the types of common injuries that could prevent you from being able to work and generate income.

Without regular income, your entire financial status can be put in jeopardy.

Learn more about disability risks from the <Counsel on Disability Awareness>

You may think of disability insurance as something that is for you, but in fact it may be more about protecting your family.  Regardless if you are the sole financial supporter or a co-supporter of your family, it's likely that your family relies on your income.  In event that income is lost, temporarily or permanently, it can create significant financial strain or ruin for your family.  That may result in your inability to maintain house payments. Pay medical bills. Finance your children's school. Pay your student loans.  Maybe even put food on your table. Certainlythe lifestyle that you have achieved. 

Preparation is essential.  The risk of disability is real. One-quarter of all 20 year olds are likely to experience a year or longer disability at some point in their working career.  Could your family thrive, or even survive a year, or longer, without your income?

With a personal disability policy, you have greater control over the available options, such as benefit levels (subject to your income qualification), benefit increases, waiting period, and other options such as student loan coverage or business expense coverage. Last, and most importantly, you are the owner of the policy, which allows you to permanently keep the policy, even when you change employers.

"Group" policies, while inexpensive, have many limiting features.  Group policies are non-portable between jobs.  If you leave your position, you lose your coverage.  They do not provide you the ability to be structure to provide tax-free benefits.  And the ability to obtain "specialty specific" coverage is limited or absent. 

When you have your own policy, in most cases you are able to structure your policy in a manner to provide for tax-free benefits.  This can make a dramatic difference in what you "keep" from your monthly benefit.  This is even more valuable as income tax rates increase.

For example 30% tax on a $10,000 benefit would only be worth $7,000 if not structured to take advantage of a tax free benefit.

"Own Occupation" job function definitions provides benefit to you if you are unable to work in your specific specialty because of injury or illness, even if you are able to work in a different capacity outside of your specialty.  

Insurance policies can be "customized" for you using additions to the policy called "riders".  These provide additional benefits but often only with modest additional premium cost. 

Typical Riders Include:

• Own Specialty Coverage
• Non-cancellable and guaranteed renewal
• Partial Disability / Residual Disability
• Cost of Living Coverage increases
• Future Increased Benefit Options
• Catastrophic Coverage
• Business expense coverage

Each insurance company has its own set of available customization.  Depending on your needs, different companies may provide a better "fit". Insurance brokers can compare various companies and help you decide on the best company and coverage plan for your needs.

Actually, quite a bit.  While these are not exact quotes, but for a first year resident disability policy with a $3400 monthly benefit ($40,800/yr),

Own occupation, non-cancellable with a 90 day waiting period (each assumes average weight and height w/o any significant health issues):

Annual Premium examples:
Male:
30 y.o. : $950 - 1300
35 y.o. : $1150 - 1600
40 y.o. : $1300 - $1800

Female:
30 y.o. : $ 1620 - 2200
35 y.o. : $ 1750 - 2400
40 y.o. : $ 1900 - 2600

The earlier you "lock in" your rates, the more you will save over the lifetime of the policy.  For example, in some cases, that savings can be over $20-30 K over 30 years  or more.

There are a number of items which factor into your premium, such as:

• Personal Factors
  • Gender
  • Age
  • Health Issues
  • Smoking History (including marijuana)
  • Where you live
• Income
  • Benefit Levels
• Selected Riders
  • Specialty specific
  • Waiting period interval (60, 90, 180, 365 days, etc.)
  • Length of benefit (2, 5, 10 years or to age 65/67)
  • Guaranteed Renewals / Non-cancellable
  • Cost of Living increases
  • Benefit increases due to income increases
  • Residual Disability
• Other existing policies
• Other factors may be included and may be carrier specific.

By contacting WhiteCoat Risk Management, we can obtain the necessary information to provide you with quotes for policies, typically from several insurance companies.  Your WhiteCoat representative can help you understand the differences between the policies to help YOU make the best choice for your needs. 

As a physician or health professional, you have the option of exploring your needs with Dr. Ruby, a licensed insurance producer who also has over 35 years of medical practice experience.  He understands the unique needs of physicians and those in the healthcare industry.  Contact him at 833.362.7475 ext 702.