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Disability insurance for employed doc

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  • Disability insurance for employed doc

    Hi,

    Was wondering what other employed docs do for disability insurance. I have a group policy through work and an individual policy purchased while in training. The individual policy had the option to increase coverage, but I’m told I cannot because of the group policy. Is this typical? Would appreciate any advice from including others in similar situations

  • #2
    "Own Occ" seems to the gold standard.  I have mine through Guardian. Though from my understanding, Berkshire (Guardian), Standard, MetLife, Ameritas, MassMutual, Principal and Ohio National offer them too.  Not cheap but you get what you pay for I guess.

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    • #3
      That is typical. You are generally only allowed to replace a certain percentage of your income via disability (~2/3rds) because companies don't want to incentivize getting disabled and just riding out your policies. Having your own individual policy is a great idea during training and to hold on to even with coverage through your employer since employer coverage can change, employers can change, and maybe you strike out on your own at some point. Coverage obtained while younger and presumably healthier will be cheaper.

      Unfortunately, coverage through your employer factors into that overall limit on what your benefit can be (even if it has a weaker definition of disability, etc). This will limit how much of your future increase/purchase options you can exercise on your individual policy. However, any coverage you already have in force on your individual policy can never be reneged upon or reduced as long as you pay your premiums. You may have a New In Practice option on your indiv policy to increase to a set level (if this is your first gig out of training) regardless of your income. I just did this to get

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      • #4
        Keep your individual policy as has been advised.  Also, be aware that group policies often have limitations such as 2 yrs of coverage for mental/nervous disabilities and weaker definitions of disability and continuing disability.

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        • #5
          Group policies may also have weaker durations of coverage, longer elimination periods (how long you have to be disabled to file a claim) etc. On the flip side, an individual policy may exclude pre-existing conditions that a group policy may not. I think it's a good idea to keep a strong, own occ individual policy unless your group policy is truly adequate for your needs.

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