Let’s face it, disability insurance, especially the own profession disability insurance offered by various financial firms for doctors is not cheap.
Realise the importance of getting insured
Let’s face it, disability insurance, especially the own profession disability insurance offered by various financial firms for doctors is not cheap. Some may be tempted to go for the for the cheaper ‘any occupation’ insurance, or worse, forgo insurance altogether. But consider this, a survey found out the third of all doctors suffer from some kind of disability or the other in their career, and for about 40% of those cases, the disability lasts for 7 years or more. That is asignificant risk, and insurance can provide you with some major financial relief during difficult times. And coming to the cost, as far as insurance business goes, the more the benefits of the insurance are used, the more expensive the premiums get. So, the fact that the premiums are expensive should tell you that there is asignificant risk of disability in the industry.
Insurance is worth your premium if it actually pays out when you need it
Here is the case against cheaper insurance – however less your premiums get, if you don’t receive any benefits when you need them the most, all the money you spent on premiums went down the drain, and you effectively lost money by going for the cheaper option; premiums wasted and no assistance when needed.
The cheaper ‘any occupation’ insurance options only pay out if any hypothetical disability leaves you absolutely crippled and unable to do any work at all. There are many situations less terrible than that where you might need assistance. The standard ‘own profession’ option offered by most major insurers offers generous coverage, offering benefits to you even if your hypothetical disability prevents you from working in your exact line of work or specialisation. You can keep receiving the benefits and be free to work in another profession in the medical field or any other field of your choice. The insurance benefits usually kick in to compensate for lost earnings when your income falls about 15-20% due to your disability, though the exact terms depend on the exact policy you buy.
If you buy a lower insurance cover, keep open the option to expand later
Sometimes it may be justified to opt for a lower insurance coverage. Maybe you just started your practice and have a lot of other expenses or maybe you are offered lower cover since your earnings are low at the moment. In such cases, make sure that the insurance policy offers the option to expand your coverage later without the need for any additional negotiation or medical evaluations. With such provisions, when your income increases, or when you choose to go for higher coverage, you can simply ask your provider to increase the coverage and it is done without any additional hassle for you.
Group policy vs. individual insurance
If you have your own practice, then this option does not apply. But if you work at a larger institution such as a hospital with a team of doctors, you may have the option of choosing a group policy, which may be cheaper than an individual policy. Sometimes this may be a good option, but you must weigh your options well based on what you expect. Check if the coverage is to your satisfaction and the variability of coverage and premiums. Also, consider the fact that in most cases your insurance cover will terminate once you leave the institution.
The Doctor Disability Shop is an Own Specialty Insurance For Doctors is very important as this ensures that in the eventuality of a doctor suffering from one illness or the other, Own Specialty Disability Insurance policy will cove them and make sure they can feed themselves and have a roof over their heads.