Disability Insurance - Active Duty Military

[ActiveDuty]

Does anyone in the forum have any recommendations for disability insurance options for an active duty physician/surgeon?

The more that I look, the more I'm becoming frustrated.  There doesn't appear to be many options in the disability sector for military docs.

[LBKCLU]

You are correct, if you are physician/surgeon that is Active Duty Military (and not a Resident or Fellow) your options are very limited:

1. MassMutual - Depending upon your base pay and your incentive/bonus pay along with your number of service years remaining, up to $2,000 month of individual coverage may be available. You can also add an "Own-Occ" Rider, an Extended Partial Disability (Residual) Rider, a Cost Of Living Adjustment (COLA) Rider, an Automatic Additional Benefit Increase (AABI) Rider and a Future Increase Option (FIO) Rider.


2. Lloyd's of London - You can purchase a policy with a 60 month benefit period (pays 5 years per disability) and you can add an option lump sum payment if you are still disabled at the end of the benefit period. You can also include a Residual Disability Rider and a Cost Of Living Adjustment Rider. However, since you are Active Duty, any policy issued would include endorsement language for a coordination of benefits and military conversion.


3. A medical association that sponsors a disability insurance policy - the American College of Surgeons is a good example. It states that "All eligible ACS members (including full-time members of the armed forces), under age 60, who are actively performing all the duties of their profession, or other primary occupation at least 30 hours per week, may apply for coverage" While these plans are much less liberal in terms of contractual provisions, if you are not restricted due to your Active Duty status, they are potentially an option until you are discharged an qualify for a larger policy that is Non-Cancellable, Guaranteed Renewable and contains a true "Own-Occupation" definition of total disability.

 

[chrisg202]

What are the good disability insurance options for a fellow in Massachusetts?

Thank you

[LBKCLU]

It really all depends upon your medical specialty, discounts available and your individual needs, goals and budget. If you are in a high income earning specialty, you might also want to consider combining two carriers in order to potentially reach a higher total monthly benefit ($25,000-$30,000 month) than any one carrier would allow on their own ($15,000-$17,000 month).

You would most likely want to look at Berkshire (Guardian), MetLife, Standard, Ameritas (formerly Union Central), Principal and MassMutual's policies.

[ERdoc]

The only provider that would give me any disability insurance while I am on active duty was Northwestern Mutual and it was the max amount which is $1000.00 per month.  I got that info from one of my coworkers.  Bought it just before graduating residency. Everybody else politely declined me while I am on active duty.  Told me to come back as soon as I am out of the military. Slim pickings to be sure.

[LBKCLU]

Residents and Fellows are a different story. Currently, even if one is on Active Duty but is a Resident or Fellow, Standard Insurance Company would allow them to purchase a policy as long as if they are graduating, they do not yet have Call-Up orders.

[ActiveDuty]

Just a quick follow-up.  MassMutual and Lloyds are really the only players.  Lloyds is a 3-5yr term as previously mentioned by Mr. Keller.  A no go in my book.

MassMutual is offering a guaranteed, non-cancelable with own occ, future increase and extended partial disability riders for 164/month.  4K monthly benefit w/ future increase of 8K until age 67.

While the civilian sector can get better, that's the best I've found for military physicians.  Your monthly premium will vary depending on your "state of residence".

[DMFA]

LBKCLU wrote:

Residents and Fellows are a different story. Currently, even if one is on Active Duty but is a Resident or Fellow, Standard Insurance Company would allow them to purchase a policy as long as if they are graduating, they do not yet have Call-Up orders.

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Can you tell me what you mean by "call-up orders?"  Do you mean like a deployment, or just an assignment?  I meant to inquire about that in a previous thread.

[LBKCLU]

That means that you don't have your official papers telling you where you are going to be stationed as part of your payback time to the military.

Larry

[DMFA]

LBKCLU wrote:

That means that you don’t have your official papers telling you where you are going to be stationed as part of your payback time to the military.

Larry

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K gotcha, that means I have another year and a half then, good stuff.  Thanks.

I find that a bit strange and arbitrary on their part, like I don't understand how my risk to become disabled changes in that period of time (outside of deployments, obv), but I'm not the one insuring people.