Mistakes to Avoid When Buying Physician Disability Insurance

The level of awareness about the chances of disability preventing one from being able to work is still dismally low among doctors and physicians. Why else would the insurance companies annually observe disability insurance awareness month every May? Merely saying, “Yes, I’ve heard about it” is not enough. Okay, you have heard about it but are you doing anything about getting a cover for yourself? A surprisingly large number of doctors, especially those that are young, do not consider it worthwhile. Yet, insurance to cover against disability is best suited for young doctors more than those who have advanced in their careers and achieved financial independence. 

Don’t under-insure yourself 

The mean annual income of a doctor in the United States is 4 times that of the country’s national per capita income. This places them among the highest income earners in America with the experienced senior doctors earning way more than the mean income of their group.

Considering that you are a young doctor making about $200,000 a year, avoid coverage that will pay you just at the rate of the national per capita income. That kind of coverage may cost less but when you need the benefit, you will have to manage with less. Speak to a reliable broker advisor about the most optimum policy to cover you against disability. 

The broker will help in customizing your policy

Your insurance policy is not just about the terms and conditions on the fine print but also invaluable policy insights from your broker agent advisor. Did you know that the cost of insurance can vary from one state to another by as much as 30%? Now, that’s a lot of money that you don’t want to just fritter away. 

Your broker will guide you not just on where to buy your policy but also on the different riders that optimizes the policy to suit your specific needs. Even if you are partially disabled there is a rider to provide you benefits. Then, you must specify your area of specialization to avoid getting categorized as a doctor who can perform functions other than those you specialize in. 

Select your broker from references

You need a broker whom you can trust and rely upon as a professional who will understand your disability concerns. It is better that you ask family and friends to refer a broker if they have had a good experience with him/her. Such a professional would have your best interest in his/her mind. 

Take for instance, the rider that covers your specific area of expertise and prevents any denial of benefit on the grounds that you are fit to perform functions outside your specialization. Or the rider that covers your cost of living allowance (COLA) with a 3-6% adjustment to inflation. Professional brokers will guide you in all these matters and much more. 

If you are an intern or have already begun attending hood, you are in the right age to cover yourself against disability. You would have heard of disability news stories where student loans became the biggest liability to handle once a young doctor is disabled for a few years. This is the most critical phase of your career when you don’t want to be burdened with a load of debt in case of disability that prevents you from working to earn an income for a few years.