Disability insurance is a specialty-specific (also known as own-occupation) policy that protects a doctor’s income in the event they can’t work due to injury or illness.
Bearing in mind the risks involved in the field and life generally, there is a need for physicians to take this policy.
Though this is the case, some doctors make mistakes in matters on this insurance policy. Below are some of the major misunderstandings.
1. Believing All Disability Insurance is the Same
In a policy, the most important component is the definition of disability. Get to know what the insurance company defines being disabled as.
As a doctor, make sure you know all the disabilities covered by the own-occupation insurance provider of your choice.
Not all insurance companies offer a true own-occupation definition of disability. It is important that you read through the actual verbiage in the contract to avoid signing to misinformation.
2. Thinking Disability Insurance is not a Necessity
Many doctors, especially the young, think of disability as something for the rest other than them.
Based on studies that have been carried out, doctors have a 20-30% chance of being disabled throughout their careers. Of all the white-collar professions, this is the highest.
The one sure way to protect your assets financially when a chronic illness or injury hits is long-term disability insurance. Take it upon yourself to get accountable.
3. Taking Time Before Getting Disability Insurance
Purchasing disability insurance should be done the day after you graduate from medical school, if possible. If you’re already practicing and do not have it, think of getting the policy as soon as you possibly can, choosing from the long list of insurance service providers.
Most certainly, you depend on your income to survive, protecting it should therefore be an ultimate goal.
The younger you are, the less expensive the policies are. Think about getting the policy rolling if you have not yet.
4. Thinking Employer Coverage is Enough
Disability insurance through your employer is not enough on its own. Your employer’s coverage is not true own-occupation coverage. Before you ever receive it, the policy has to be taxed.
Over and above that, the coverage from your employer is in most cases usually not portable.
That being the case, if you change jobs to an employer that doesn’t provide a disability benefit or if your health has changed to where you can’t get the coverage on your own you could end up losing the protection of your income.
5. Missing on Payment of Premiums
If you pay your disability insurance premiums annually instead of monthly or quarterly there are discounts.
For that reason, a good number of people will go for the same. Missing an annual bill can be very easy especially if you are busy. During that time when the policy has lapsed, your income is no longer protected.
A viable suggestion could be keeping your policy active on auto-payment.
Conclusion
Avoid mistakes others doctors make with disability insurance. Get a policy the earliest possible.
Additionally, make sure you have enough coverage to adequately protect yourself and your family.
Ensure you have a disability insurance policy with a true own-occupation definition of disability. Do not keep your trust in your employer’s policy.
Author Bio
Naomi Olson [Website • Twitter • Headshot]
I am a CFP® (Certified Financial Planner).
I have a severe phobia of bridges and dirty balance sheets.
Hobbies: blogging, meditation, and loving Bull Market (my dog).
