Four things to think about when purchasing a disability insurance policy.

Disability insurance is designed to protect your most important asset, your ability to earn income. Below are our top four things physicians should think about when purchasing a disability insurance policy.

What does “being disabled” mean?
Being disabled means you are unable to work due to sickness or injury.

Should I have group or individual insurance?
Group insurance is owned and controlled by the insurer and your rates and policy provisions are not guaranteed. For example, a few years ago the insurer for OMA Group disability insurance had a significant rate increase. With individual insurance, you own and control your policy and your rates are guaranteed.

What options do we recommend on an individual owned policy?
We recommend that your policy include total, residual and partial disability coverage. We also recommend that you consider an own occupation definition of disability, a cost-of-living adjustment, a future income option, HIV and Hepatitis B&C and a conversion to long term care coverage.

• Own occupation is your definition for total disability. The own occupation definition of total disability states that if due to injury or sickness you are unable to perform the important duties of your own occupation and are under the care of a physician, you will receive full disability benefits.
• The cost-of-living adjustment, also referred to as a COLA option, protects you against inflation while on disability claim by ensuring that your disability benefit is adjusted annually by the change in the consumer price index.
• A future income option, also referred to as an FIO, allows you to boost your monthly disability benefit on the anniversary date of your policy with no medical and the full applicable discount.
• The conversion to long term care option which allows you to convert your disability insurance to long term care coverage. Long term care insurance provides you with up to $6,000 per month ($200/day) of lifetime coverage for care in your own home or in a facility and benefits are paid up to age 100.  Together these options protect your income throughout your medical career.

How much disability insurance are you eligible to have?
The amount of disability insurance you can get is based on your net income. In cases where you are incorporated, we may look at your corporate income. Below is a chart illustrating your net income before tax and the amount of monthly disability insurance for which you may be eligible.