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“What exactly does “own-specialty” mean when it is part of a disability insurance policy?”

That’s a question we hear often. It’s a great question — one every physician should ask when shopping for disability insurance, because it defines some of the conditions under which benefits will be paid and what portion of the contracted benefit amount will be paid.

I cannot speak for every insurer, but I can tell you about the AMA-sponsored Disability Income Insurance policy and its definition of disability.

This coverage includes an “own-specialty” definition of disability, which means benefits are payable if you are unable, as the result of a covered illness, injury, or organ donation to perform the duties of your own medical specialty and are not gainfully employed, even if you have the ability to work in another field of medicine.

If after a covered disability, you choose to return to work in your specialty or another occupation, and your monthly income is reduced, you can collect a percentage of your total monthly benefit.

You can enhance the protection of the AMA-sponsored Plan by choosing the “true own-specialty” definition of disability to allow you to collect 100% of the monthly benefit even if you choose to return to professional work that is not your specialty.

Additional premium applies for the “true own-specialty” definition.

Keep in mind, under both definitions, your medical specialty is the specialty you are practicing at the time of disability.

The answer, within limits, is, “That’s up to you.” You can choose the length of the elimination or waiting period from the selections offered. AMA-sponsored Disability Income insurance Waiting Period options include two, three, six, nine or twelve months. Keep in mind that benefits are not payable during the Waiting Period and during that time you cannot be working in any occupation. You may have short-term disability income protection that will influence your choice of an elimination period. You should review your financial situation carefully before making the choice.

Under the AMA-sponsored Disability Income Insurance policy, insureds could receive benefits to age 67. The length of time benefits are payable depends on the age of the insured physician at the time the disability begins.

• If the disability occurs before age 62, benefits under this coverage are payable up to age 67.
• If insured is disabled at age 62, benefits are payable for up to 60 months. From age 63 to age 69, the benefit period is reduced in six-month increments, depending upon the age at the time the disability begins.
• From age 70 to age 75, benefits are payable up to 12 months.

It is worth noting that a physician’s need for disability income protection may change over time. It is a good idea to review your disability income protection from time to time, considering your current income and other financial resources available to support you during a period of disability.

Another fact to consider, disability income protection may actually be the least expensive at a time when there is greatest risk to the physician’s financial future — when he or she is young. Association-offered policies often recognize this by offering variable premiums, lowest when the physician is young and increasing as age and the ability to take on the cost increases.

Finally, look into riders that can customize your policy to your specific needs. These can include things like cost-of-living adjustments and added protection in the event of a catastrophic disability.

When considering disability income protection insurance, it is smart to tap into the market knowledge of specialists who can help build coverage based on your need for both protection and affordability.

Kendra Henderson is a Physician Insurance Specialist at AMA Insurance. She specializes in disability and life insurance and works with physicians and their families at every career stage. Kendra is licensed to sell insurance in all 50 states and has helped hundreds of physicians nationally with their disability coverage.