Two disability insurance policies ?

[AIdoc]

I have a DI policy with Standard ( I pay 61$ monthly, 2000$ benefit). I got it in my 3rd year of residency. Now I'm in my 3rd year of fellowship and shopping for a new policy before I start working. I was offered one from Ohio National ( 115$ monthly for 5000 $ benefit). Both policies are pure/true own occupation with residual disability riders. Both limit coverage of mental disease for 2 years. My question, should I cancel the first one, or should I keep both policies? Hopefully no one would need it, but isn't having two policies with 2 different companies increase your chance that one of them at least will compensate you?

Thanks

[DK Unger]

The main advantage of establishing two individual disability policies is to have the option to increase the total monthly benefit in the future without medical qualification up to the maximum income replacement that all disability insurance companies will participate in. Given the high income limits required to qualify for the maximum monthly benefit with all companies combined, this is typically only applicable to a few medical specialties or to others in unique circumstances. There are some other reasons to establish two policies (to become eligible for unique benefits available with each company's particular disability policy) but this should be weighed against the potential extra hassle associated with having 2 or more policies at claim time.

[G]

I have three (four if you count SS).  As I reach certain financial milestones, I am sequentially dropping them.

[Scott at MD Financial Services]

Sounds to me like you are paying $30.50 per month per $1,000 of benefit on that Standard and the Ohio is going to cost you $23 per month per $1,000 of monthly benefit.  I know which way I would recommend to my disability insurance clients based on cost since the definition of disability is the same in both contracts.  If you also need life there is a combo purchase discount you can get too with that Ohio contract.

Let me know if we can help further.

[FIREshrink]

Tell me more... I have a unum policy from residency that costs $100 per month for $4000 in benefit. Are you saying I can increase that?

[Scott at MD Financial Services]

All coverage is based on age, gender, medical specialty, state of residency, and discounts.  FIREshrink, if you want to PM me your details or email / call me (see contacts below in my signature)  I will see what can be done for you.  One does not hear about UNUM much anymore since they kind of left the IDI market for physicians about 15-20 years ago so not sure if you bought that recently or if it is 20+ years old.