Disability insurance is designed to replace a portion of your monthly income if you are unable to work due to an illness or injury. The monthly benefit from disability insurance can help cover expenses, maintain your standard of living, and provide financial stability until you return to work.

Think of disability insurance as income protection — something that helps keep your larger financial plan intact. You and your family deserve this kind of protection, and you can depend on AMA Insurance Agency, Inc. to offer coverage that works for physicians.

Disease and illness, not injury, account for the majority of disability claims. The three most common causes of disability are arthritis, back pain, and heart disease.^[1]

AMA Insurance is a good choice for disability because we understand the unique needs of physicians like you. Your work is unique, and your insurance coverage should reflect that.

Another reason AMA Insurance is a smart choice, we tap into the power of more than one million physicians to offer you competitive rates and benefits from top insurance companies.  Plus, we offer a variety of plans for physicians, from individual coverage to employer-group plans – all tailored to the medical profession.  We even offer plans to address unique circumstances or situations.  And our non-commissioned Insurance Specialists provide unbiased advice, to help you find the right plan (or plans) that best fit your needs.

Nearly one in four people entering their working years today will become disabled at some point in their career. Illness, not injuries, accounts for the overwhelming majority of disabilities.

Even if you are an exceedingly cautious person who has enjoyed robust health, you never know when you might need disability insurance to cover a long-term absence from work. Disability insurance can be a lifeline in your time of need, helping you get through a period when you are unable to earn an income.

First, a good choice for disability insurance is a policy designed specifically for physicians, such as those offered by AMA Insurance. A sound strategy for physicians’ income protection requires certain features and benefits that you may not find in an off-the-shelf disability product. This guide highlights the features you should consider when shopping for disability income insurance.

A non-cancelable and guaranteed renewable policy provides considerable security, since the insurance company can’t raise your premium or cancel the policy as long as you pay the premiums when due. When the policy is “guaranteed renewable,” premiums can increase under certain circumstances. Non-cancelable and guaranteed renewable policies are generally more expensive than other types of disability income insurance.

When you buy disability coverage, you’re essentially buying the insurance company’s definition of disability.  Here are a few of the more popular definitions to consider in physician-specific disability plans:

Own-Occupation — This refers to the occupation or medical specialty you were working in just prior to your disability. If your “own occupation” is protected, the policy will pay benefits even if you can work in another occupation. This is sometimes referred to as “regular occupation” or “your occupation.”

Modified Own-Occupation — You would typically be eligible for total disability benefits when you are unable to perform the material and substantial duties of your occupation solely due to injury or sickness and you are not gainfully employed during the elimination period. After you return to work benefits are reduced based upon other income received.

True Own-Occupation — With this definition, you can work in another occupation/medical specialty and still be eligible for full disability benefits. Your benefits would not be reduced based on other income received in another specialty or occupation. Typically, you would be considered totally disabled if, solely due to injury or sickness, you are unable to perform the material and substantial duties of your occupation/medical specialty.

The true own-occupation definition is considered by most financial professionals to be the strongest definition for physicians.  However, it’s also the most expensive of the three definitions.

Some policies may begin with an own-specialty definition of disability and after a period of time (such as two years) may change to an any-occupation definition of disability.

Elimination Period — The elimination period is the number of days you must be disabled before policy benefits become payable. Common options are 60 days, 90 days, 180 days, and 365 days. The longer the elimination period, the lower the premium. The most popular elimination period is 90 days. Some plans won’t pay benefits if you work during the elimination period, making a shorter elimination period desirable.

Maximum Benefit Period — This is the maximum period of time for which benefits are paid for any one period of disability. Typical options are 2 years, 5 years, to age 65, to age 67, and to age 70. The longer the benefit period, the higher the premium.

Residual Disability Provision or Rider —  Not all disabilities are “total”. You may suffer a residual disability that limits your ability to work and results in decreased income. A residual benefit protects you when you are only partially disabled. If you are sick or injured and have a loss of income but still working in the same occupation, you would be eligible to receive a benefit equal to the percentage of your lost income.

Guaranteed Increase Option Rider — A guaranteed increase option allows the policyowner to buy additional disability insurance in the future with no medical underwriting. This is useful for a person who expects their future income to increase and wants a guaranteed option to obtain more coverage. This rider is especially important for residents, fellows, and physicians who have recently started in practice.

Cost of Living Adjustment Rider (COLA) – The cost-of-living adjustment (COLA) increases your monthly disability benefit each year you are on claim to offset inflation. The increase is either fixed (i.e. 3% or 6%) or based on the Consumer Price Index. COLA is most important for physicians under age 40 because of the possible years a claim might be active. Some physicians purchase a policy with a COLA rider but remove it (reducing their premium) as they get older.

Catastrophic (CAT) Disability Benefit Rider — Some injuries or illnesses have devastating consequences. With a catastrophic disability, you have complete, irrecoverable and irreparable loss of: (i) the use of both hands, or both feet, or one hand and one foot; the sight in both eyes; speech; or hearing in both ears; or (ii) are totally disabled due to Alzheimer’s disease or other irreversible form of senility or dementia; or (iii) are totally disabled and have Aphasia; Hemiparesis; Paraplegia; or Quadriplegia.

In the event you become catastrophically disabled, a “CAT rider” would provide an additional disability benefit on top of your regular disability benefit.