Five Key Components of Disability Insurance for Doctors
There are many aspects of disability insurance for doctors, but most plans have certain elements in common. An individual plan should reflect both your current career and your vision of the future. A firm grasp of the basics may help you choose a plan that best meets your needs and values. Here are five key components to consider.
The base benefit is generally described as the maximum monthly dollar amount paid out. This number is determined by the physicians monthly income at the time of the policy application.
This is the period of time between the initial date of the disability and when benefits begin. Disability insurance for doctors typically offers periods of 30, 60, 90, 180 and 365 days for the elimination period. Most doctors choose the 90 day option. Raising it from 90 to 180 days usually reduces the premium by less than 5%, while lowering it from 90 to 60 days more than doubles the premium.
The length of time a benefit will be paid to the doctor is the benefit period. Increments of two, five or 10 years to age 65, 67 or 70 are common.
The other term for this is a partial benefit, which pays out for a partial disability resulting in a 20% or more loss of income.
Future Insurability Option
If you are purchasing a policy when starting out, and expect a large increase in your future income, this may be an important option.