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These Are 5 Things You Should Consider In Purchasing Disability Insurance

While Orthopedic surgical education mainly focuses on the more technical side of clinical care, it gives both the fellows and residents minor guidance in career management. One of these is the disability insurance, where some physicians tend to fall into intimidation through misinformation and hearsays.
The disability insurance is acquired to protect a person’s income in case he/she becomes disabled and unfit to work. To maximize its benefits, here are five things you should know about purchasing disability insurance:

1.Contact an independent agent
For a wide range of options, purchasing from independent agents trusted by your colleagues is a good choice. They receive a commission regardless of which insurance company is selected and they can provide you with a more comprehensive and objective overview of all available policies without any bias.
2.Define Disability As “Own Occupation”
Out of the three clauses such as “own occupation,” “modified own occupation,” or “any occupation” that policies define, the “own occupation” definition is the least restrictive. This allows the client to acquire disability benefits in the event the physician is unable to perform its duties as an orthopedic surgeon. Meanwhile the “modified own occupation” definition only makes the benefits available when the surgeon completely quits work as a physician. Worst, the “any occupation” definition will force the client to quit every profession he is educated and trained in.

3.Check If There Is Residual Disability Benefits Provision
If ever a surgeon becomes partially disabled, allowing him/her to return to work in a limited setting defined by either a loss of duties or time, a policy with a residual disability amendment a.k.a. “rider” would disperse partial disability benefits. So make sure this is included in your policy so that an accident won’t give you too much headache.
4.Make Sure It’s Non-cancellable And Guaranteed Renewable
You have to purchase a policy that is non-cancellable and guaranteed renewable. A client shouldn’t have any problems with his/her premiums as long as it’s timely paid. While insurance companies cannot cancel the policy nor increase costs until the client reaches 65 or 67, those that lack these features must not be considered.
5.Pay premiums with after-tax dollars
Since disability insurance premiums can be paid either with pre-tax or after-tax dollars, Paying for premiums with pre-tax dollars compels surgeons to pay income tax on all disability benefit payments. Paying after-tax dollars, however, are tax-free. You already know which one is the best deal.
Based On Materials from Helio
Photo Credit: Flickr