Physician Disability Insurance

Disability is difficult enough, disability without income is even worse! Disability insurance is the answer to a long-term disability! As the name implies, this insurance is basically for physicians who may face some disability in life. Physicians make an extraordinary investment in time and money to get to where they are. Their family’s continuing financial well-being is a major worry where the right disability insurance policy provides the answer.

Obtaining a policy is easy. Contact forms are available at insurance companies, which one has to interpret and fill up. Different insurance companies have different rates and policy features for different occupational classes, where the physician’s specialty determines the class. Always make sure to get a physician disability policy from a financially strong company with top financial strength ratings, as one will be making an investment for future earnings on purchasing a policy. They are the ‘bank” holding your income. So choose a strong bank!

Group Plans Can Be Changed Anytime

Physician disability policies can help replace a portion of the lost income due to disability in one’s working years. One of the most important policy features to have is an own-occupation definition of disability, where if the physician is unable to work in his specialty, the policy will pay him a benefit even if he works in another occupation or specialty. Some policies say that one has to not only be disabled from one’s occupation, but be unable to work in any gainful occupation to get the policy’s benefits.

There are various group plans offered by the insurance companies. Here the plans can be changed or canceled at any time, leading to the possibility of one not having coverage when needed! In the case of one changing employers, then the group plan can’t be used by the individual. Most of these plans are taxable and don’t cover benefits, which give a lower after-tax benefit. The main disadvantage of group disability plans is that they require the physician to be completely disabled before they pay the benefit. So if one can do some sort of work, benefits may not be payable. In the case of a physician owning his own practice, he may want some disability overhead expense. This provides funds to cover ongoing expenses like rent, employee’s salaries, to keep the practice open at times of disability. But few practices survive in this way unless the physician generates new revenue.

Companies Require Evidence Of Disability

Several companies require for evidence for disability to accept a claim, not withstanding the fact that such provision doesn’t exist in the policy. They should actually conduct a thorough investigation on each claim, but the company’s failure to offer reasonable explanations for not paying benefits has become a common practice. A physician should always avoid the pitfall of failing to provide appropriate information as the company will then use this against him.

Make sure you understand the fine print in the insurance policy to safeguard against any complications in the claims process in the future. Find out how to satisfy to obligate the insurance company to pay benefits. This may include regular care of the treating physician and receiving appropriate care for the disability.