How To Find The Best Policy
Over the last couple of decades, the disability insurance for physicians industry has become so highly specialized that it has consolidated itself among a relatively few number of companies that offer a competitive product. This makes choosing a top company to work with much less complicated. However, you still need to be able to navigate between each so to determine which company has the best policy available for your specific needs.
Currently, the major players with the high quality disability insurance products for physicians are, Guardian, Mass Mutual, The Standard, Ameritas, Metlife, and Principal. At any given time, any one of these top quality companies may offer the best disability insurance for physicians at their current place in life, from medical school, to residency to fellowship and beyond. The specialty that a physician is trained in also comes into play with determining the strength of the policies that are available. For instance, Guardian might be the best right now for covering an male radiologist from Utah, and Mass Mutual might have the best offering for a female anesthesiologist from California. Next year it could be Union Central (Ameritas Life) and Principal as the best in terms of price for those situations. So, where does a physician start in identifying the company that best matches his or her needs, priorities and preferences when looking to purchase disability insurance for physicians? The best place to start is by understanding how to differentiate between disability insurance carriers.
Financial Ratings
A disability could strike at any time – now, or 20 years from now – so it is important that your disability insurer have the financial strength and stability to weather the worst of economic storms. A good way to do this is to see how various rating agencies rate a particular company. Using A.M. Best Company for example, a company rated ‘A=’ or better demonstrate the greatest financial strength to withstand bad economic conditions.
Occupational Definition
You need a disability insurance for physicians policy that will not only replace your income, but also protect your specialty. At a minimum you need an “own occupation” policy that will pay benefits in the event you are unable to perform all of the specific duties of your occupation. The devil is in the details of these definitions, so make sure your disability insurance for physicians policy has the broadest definition available .
Occupational Classification
Each company weighs the same set of factors when pricing their policies – gender, specialty, geographic location, age, income, health, and employment status. But each has its own set of criteria and formulas. The variance is most apparent when it comes to pricing or rating the different medical specialties some of which are considered to be higher risks than others. One company can be very competitive generally, but not so for a certain specialty, such as an emergency medicine physician. Be sure to check each company for their pricing in your specialty.
Guaranteed Renewable and Non-Cancelable
Look for insurers that offer policies that are guaranteed renewable and non-cancelable.
Partial Disability
Statistically, you are more likely to become partially disabled than totally disabled. Most of the top insurers offer a residual or partial disability benefit. For high earning physicians, a benefit payable on the dollar amount of lost income is better than a policy that pays based on a percentage of income loss.
Finally, it is advisable to work with a disability insurance specialist who is knowledgeable and who has access to most of the top-rated insurers in the disability insurance for physicians marketplace.
SPONSORS
Though the views expressed above are solely the writer’s, University of Maryland Medical System supports “The Dose with Dr. Goodhook” and is partnering with Adventures in Medicine to create an open, inspiring and insightful community for residents and physicians. Click here to learn more about ways that University of Maryland Medical System is making practice purposeful.
About the Authors:
Joe Capone and OmniMed Financial & Insurance provide comprehensive insurance and financial services to physicians, dentists, other healthcare professionals.
I help individuals, families, and small businesses to increase their level of financial organization, minimize risk in their financial world, and develop strategies so that they may achieve their wants and goals.
