With the physician’s typical overfilled calendar, taking the time to review your disability income protection might seem like a luxury. It’s not; it is time very well spent. In fact, it could prevent serious financial problems if you were to become disabled by illness or accident for a substantial length of time.
There may be significant gaps in your coverage, gaps that could be filled with a little corrective action. Here are some things to look for:
Perhaps your family has grown, or your children’s education costs have increased. If your disability coverage pays a fixed monthly amount, or even if it is a percentage of your income, it may not be enough to sustain the standard of living you currently enjoy.
If you are an employed physician and your disability coverage is provided by your employer, it is usually calculated on a percentage of your base income. A typical figure is 60%. If bonuses make up any substantial part of your compensation, they are likely to be excluded. Furthermore, the benefit could be taxable,[1] so consider how your family would function if your monthly income were only around half of what you currently take home.
There are ways to supplement your current coverage and give yourself the peace of mind of knowing that you could financially weather a long period of disability. A physician insurance specialist can help you assess your situation and update your coverage or supplement what you currently have.
[1] Please consult your tax advisor for advice on your personal situation.
Take a careful look at the terms of your disability insurance. When does your eligibility for benefits end? When you are able to perform any work, or when you are able to fulfill the requirements of your profession and your specialty? “Any occupation” provisions are typical in employer-provided policies, and they can deliver some unpleasant surprises to physicians who have worked hard and paid (or are still paying) for the education that prepared you to work in your medical specialty. If you see “any occupation” in your policy, consider replacing or supplementing it with a policy that specifies that you will be paid benefits until you are able to take on medical practice in the specialty you are trained for and customarily practice. Disability insurance offered by professional associations or specialty groups usually includes “own occupation” language rather than an “any occupation” definition.
If you are an employed physician and your disability income protection is sponsored or provided by your employer, it is usually not portable. So, if you plan to change employers you could be looking at a significantly different policy or, worst case, no coverage. In any case, you will need to align your new situation and your protection needs.
There are physician insurance specialists, salaried and not commissioned salespeople, at AMA Insurance, who are prepared to help you not only identify but plug the gaps that threaten your financial security. Familiar with the unique insurance needs of physicians like you, they will help you build a solid wall of financial protection in the most economical way. If you want the assurance that your physician disability income insurance portfolio adequately covers your family’s needs, take the time to get their assistance. It’s their job to take care of you.
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