Life is a series of uncertainties. One day a person wakes up whole and full of health only for the next minute to be crippled. Accidents happen, coming with a disability sometimes. No one is prone to these, not even the physicians who are responsible for health.
For that reason, we will look into the doctor’s disability. Further, we will address the qualities of the best disability insurance for doctors.
Also read: Medicare Advantage Plans
1. Doctor Disability
This is a situation where as a physician you get sick or hurt and can’t work. In disability insurance, there are several definitions that make you fit for remuneration.
Some policies consider you disabled if you are unable to perform the duties of your current occupation. These, referred to as own occupation, are the best and most preferable.
On the other hand, there are those policies that term you disabled only if you are unable to work in any occupation. For instance, if you cannot work as a doctor but can work as a pharmacist then you are not disabled.
2. Disability Insurance
Disability insurance comes in handy when you get too sick or injured to work. It is aimed at providing partial income so you can pay your bills even when ailing or are not working.
As earlier stated, disability happens, more often than you may think. Apparently, disabilities are caused more by illness than by injury. Some common disability-causing conditions include heart disease, arthritis, and other chronic illnesses.
Disability insurance is offered depending on the occupation of the holders. Insurance companies offer different classes for different occupations. The classification is based on the risks involved in the job and how hard it is to get back to work after a disability.
For doctors, the most common occupational classifications are done on the basis of specialty. One major reason could be because what could be termed a disability to a surgeon could be different from a pharmacist.
Practices that have strenuous manual duties fall under the highest-risk occupational classes. An example of this includes registered nurses, surgeons, emergency room physicians, and obstetricians.
Features of Good Disability Insurance Policy
1. Favorably Renewable
The first thing to check in any disability insurance for doctors, even before price, is the renewability element.
The renewability policy favors the insuring company, and not you. With this, the company can cancel the agreement anytime, or even raise the amount of the premiums without seeking your consent.
A good insurance policy should be non-cancellable. This is to mean that both parties have to agree on any alterations to the contract.
To be on the safe side, make sure your policy is non-cancelable and guaranteed renewable.
2. Protection Against Inflation
Inflation affects money value over time. A good policy should cater to this. Practically, the value money has today will have drastically changed in the next five years. This should reflect in the benefits.
This protection against inflation, which is a key policy benefit, works by presetting the annual purchasing power. This way, you need not worry about inflation.
3. Competitive Monthly Benefit
As earlier mentioned, a disability insurance policy should cater to your bills at that point when you are unable to work.
A good disability insurance policy ought to make payments amounting to 50-60% of the amount you were earning before the disability. In instances where one has multiple policies, they should pay as high as slightly above 70% of the holder’s income.
Some insurance agents will sell you disability insurance paying benefits of less than 15% of the salary you earn before the disability. Practically, there is no point in paying for such insurance. It beats the point of having one.
4. Appropriate Waiting Period
After the onset of disability insurance, there will be a waiting period within which, there can be reimbursement in case a disability occurred. The policy should specify a waiting period of 6 months after it kickstarts.
This is usually for especially long-term policies. For short-term disability, the policy should pay two weeks after the disability. That way it will assist the victim to foot bills.
Based on your choice some policies will pay you for 2-3 years. The more extended benefit period will last up to the age of 65.
It is therefore very advisable to start paying for your cover when you are still young since permanent or long-term disabilities may occur at any time. If your budget can support it, go for the cover.
5. Employer Group Plans
Good disability insurance policies for doctors should incorporate a group coverage plan. If an employee pays for their plan in the group plan, It is relatively cheaper in comparison to individual policies purchased by employees.
Physicians need to be aware that a disability is bound to happen to anyone at any given point. There is a need therefore to buy a cover for disability insurance.