If you are working in the medical field as a physician or a healthcare professional, you may be familiar with disability insurance. Thinking about the years of hard work you went through to get to your present position, it is understandable that disability insurance is a must for physicians. You may be asking yourself, “how much disability insurance for physicians do I need?” Your profession is your main source of income, and disability insurance helps protect your income and financial responsibilities.
How Much Disability Insurance for Physicians Do I Need?
Let’s say you suffered from an injury or illness and now cannot work? How much of your pay do you want to protect? Keep reading below to find out how this type of insurance works, and how much of it you need.
How Much Disability Insurance for Physicians can I Get?
As a physician, it is likely that you’ll want enough coverage. Physicians are able to get disability insurance when they become residents and sometimes in their intern year. Because it is likely that your pay will increase, being in residency can help you get a policy with a monthly payout amount that will replace a little more than your income today, but will also let you increase the benefits once you are an attending.
As your income increases, it is likely that you will want a higher insurance benefit. So, before you get a policy, make sure it offers an additional purchase benefit, which permits you to get more disability insurance without the need for another health examination.
How Will my Policy Work for Benefit Claims?
Since not all policies are the same, this is why it is important to know how your policy works if you need to make a claim. Prior to signing the policy, check if it defines a disability based on your profession, as some insurance providers only pay benefits if you are unable to work in any field or profession. It is also recommended to check the number of pathways to be eligible for total disability. Many policies only have one, while others offer two (total disability and residual/partial disability), providing you options for when you cannot perform some of your job responsibilities and your income drops but you aren’t fully disabled.
How Much Will My Policy Cost?
Another deciding factor for many physicians is the cost of a disability insurance policy. Policy costs usually vary depending on these main factors: if you have Own Occupations riders, your waiting period and the amount of monthly benefits you signed up for. Several options also affect the amount you pay, such as having graded premiums that increase as time goes by; allowing you to pay a lesser initial fee and more in the years to come. The break even periods are close to year 10 so if you plan to keep your plan after that period of time, this may not be the best strategy for you.
Are My Disability Insurance Benefits Taxable?
Aside from checking your policy’s definition of disability, you also want to ask whether or not your benefits will be taxed. If taxable, such as having a policy as a part of your work benefits, it is obvious you would want a higher benefit to cover both the taxes and your take-home money. Private disability insurance, on the other hand, offers non-taxable benefits as long as these benefit are not written off on tax returns.
What is Disability Insurance for Physicians?
In case you can no longer perform your specialty due to the injury or disability, physician disability insurance acts as a safety net, replacing your earnings and securing your finances. Physician disability insurance, also called income protection, usually offers a true own occupation disability insurance for physicians.
How does Disability Insurance Work?
Disability insurance helps protect your income by giving you wage replacement benefits when you get disabled from an illness or an injury. Depending on your policy, coverage can go up to 60% of your earnings and typically have a cap or maximum monthly payment.
So, how much disability insurance for physicians do I need? As a physician thinking of purchasing disability insurance, you might have asked this question a few times. Of course, you’ll want to receive enough benefits to replace your income in case you cannot work in your profession anymore. There are some considerations you need to make before getting a policy. These include an additional purchase benefit, the definition of a disability, waiting periods, and the amount to pay for the policy itself. If you are looking into disability insurance for physicians, the professionals here at Crisp Physician Solutions are prepared to help you get started.