Disability benefits help protect and replace income if you become disabled. Their purpose is to replace portions of your salary if you’re out of work due to a qualified illness or injury.

You can use the benefits to help pay for housing or any of your usual expenses — things you might have to cut back on or pay for with savings if you are unable to earn.

Everyone needs some kind of coverage - unless you are working just for fun - in order to replace a % of income. When people without Disability Insurance become disabled, they lose their paycheck and have to spend down savings. Some exceptions are those with high levels of investment income, students, or individuals whose spouse continues to provide enough income to cover expenses.

The best time to buy Disability Insurance is when you are young, in training, and in good health. This is because eligibility and premium rates are based on your age and how healthy you are.

In most cases, this is correct. However, relying on your employer's disability insurance (group coverage) can prove to be one of the most costly financial mistakes a doctor can make for reasons that most doctors don't know about until it's too late:

It is limited: Most hospitals will cap the monthly benefit to 60% of base salary (not including RVUs/bonuses, etc) up to a max monthly benefit... meaning that in event of a disability, your income would be half or less of your current take home.

Taxes: In most cases, group coverage is paid out taxably, which reduces the usefulness of the dollars

Employer disability insurance is almost never true, own-occupation (specialty-specific) protection. This means that it is possible that if you are disabled from an injury or illness and can't practice medicine in your field but can still do any other job (librarian, teacher, etc.), you could receive a diminished benefit from your employer's coverage or in some cases, no benefit at all!

Group disability insurance isn't portable. This means that if you ever leave your employer (which most doctors do at some point in their careers), you may be left without income protection or at best, if you are older and/or your health has changed, you may be forced to get your own coverage at that time that may be extremely expensive or unavailable to you.

You need enough coverage to provide you with sufficient income to live on until you are able to return to work or receive other financial resources (retirement, social security, etc.). The benefits you purchase through a Disability policy is quoted as monthly income that you receive if disabled. Consider your monthly income after taxes, now and in the future, as the base amount you would need. In addition to the monthly amount, an individual needs to consider the length of time you want to collect benefits, and when you would need them to begin.

1.The type of disability contract: A “non-cancelable” disability contract guarantees that a company cannot cancel a policy or change the rates, as long as you continue to pay the premiums on time. A “guaranteed renewable” disability policy guarantees that the terms of your policy can’t be changed, however premiums may be changed after a certain period (generally 2 to 3 years) and only if the change applies to all policies with similar benefits in your risk class. A third type of contract, often called an “optionally renewable” disability policy, is one that can be canceled by the company at renewal time, and may require you to have periodic physical exams. The contract that guarantees the most generally demands a higher premium.

2.The waiting period: You select the amount of time you will wait before you receive your first disability payment. Generally, the longer the waiting period, the lower the premiums. Typical waiting periods are 30, 60, 90, 180, 365, 730 days.

3.The benefit amount: The amount of monthly benefit you apply for directly relates to your premium. Generally, the higher the benefit, the higher the premium.

4.The benefit period: The maximum length of time benefits will be paid. Your choices are typically 2 years, 5 years or to your normal retirement age. Generally, the longer the benefit period, the higher the premium.

5.Your current health status and medical history: If you have a current health issue or previous injury, you may still qualify. An underwriter looks at each individual application and determines the risk factor. Some pre-existing conditions may be accepted with an exclusion amendment added to your policy (i.e.- a previous knee injury).

Yes, but it depends on the type and severity of the medical problems. The insurance company can utilize 3 options:

• Charge a higher premium for the policy

• Exclude the condition from the policy

• Decline insurance altogether

If you have medical complications that you believe would limit coverage options - please list them on the quote form!

The application process is as follows:

• Click on the “Get Started” button at the bottom of your quote comparison and complete it.

• Connect with a specialist. They will educate you on Disability insurance and show you quotes for situation.

• If you choose to go forward with an application, you will fill that out and apply with the insurance specialist.

• The insurance company will review your application, health history and financial documentation.

• When your application is approved, you will be contacted to review details.

• You can expect the entire process to take between 3-8 weeks.