The most important thing to remember when investing in disability insurance is that you should always choose a long term policy. That’s because the tenure of disability is around 31 months on average, which equals more than two and a half years. Long term policies are designed to provide you claim benefits for as long as it is required, in relation to your disability. There are instances of very long spells of disability that people have suffered but survived only because they had long term cover against disability.
In the early part of your career, you would most likely be employed and your employer would surely provide you with a group short term or long term doctors disability insurance policy. You must, however, remember that it is not advisable to solely depend on a group policy for disability coverage. That’s because there are several limitations in a group policy that will result in large gaps in risk coverage during claim time. Many people tend to be happy about just having a group cover against disability from their employers.
A group long term cover against disability cannot be your primary policy
A group long term physicians disability insurance policy has obvious limitations that make it inadequate as a cover against long term disability. The whole purpose of investing in a disability cover is to get adequate coverage both in terms of tenure as well as the compensation amount.
All the disability insurance services maintain a ceiling on how much compensation they are going to provide to a claimant. Some may even have limitations on the duration for which they will provide the benefits irrespective of whether you have recovered from disability or not.This is why it is important to do a wise research on policies and see if they can justify the amount you spend on insurance each month.
Compliment your individual disability cover with a group policy
Any meaningful healthcare professionals disability insurance must have an individual long term cover as the main or primary policy because it is designed precisely for that. However, this policy also has a ceiling on coverage in terms of the compensation amount you will get.
In the early part of your career as a doctor, when your income is much lower it is not difficult to get adequate benefits for your long term individual healthcare professionals insurance policy. The gap in getting adequate benefit arises when your income is in 7-8 figures. In this situation, if you have a group policy to complement your disability cover, you can bridge the gap.
Consolidate your disability cover by stacking your insurance
Depending on how high above average your income goes, you could plan your disability coverage accordingly. For instance, if you are a dentist, you must consider the higher than the average income of dentists and choose a group long term policy to stack your individual dentists disability insurance policy.
Finding the right policies to optimize your overall coverage against disability requires in-depth knowledge and understanding of insurance products. A disability insurance broker, who is an industry professional, would obviously have that kind of knowledge and understanding in addition to experience. You must, however, select a reliable broker if you want to hire such services.
For more information about long term disability insurance: https://www.mgis.com/solutions/group/group-long-term-disability
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