How Much Disability Insurance for Physicians do I Need – What Should I be Paying?

If you are a doctor or dentist, then you certainly must be looking for answers to the question “how much disability insurance for physicians do I need?” However, the question cannot be answered easily unless one knows how to go about it. Hence, in this article, we will try and learn more about this subject matter.

How Much Disability Insurance for Physicians do I Need

There are quite a few things you must keep in mind for you to have an idea on the amount of disability insurance that you may need. It is not just about a few odd things, but it must be looked at holistically.

Why You Need It?

When you are working as a resident doctor, you may not think about coverage because you are young and less likely to have health complications. In most cases you will be covered for the monthly pay or allowance you are paid or something more may be added to it. However, as you become a practicing doctor, such as plastic surgeons and physical therapists, your income will increase and your expenses will also increased accordingly. In such cases you need to go in for a higher quantum of disability insurance policy. Here are a few questions that you must ask yourself before you go in for disability insurance.

What Happens When Claims are Raised?

You have to understand that not all policies are the same, and therefore before picking up a disability insurance policy, it is important to find out how the policy will work for you. Before you sign up for a policy, please ensure that you do your homework well. Look into what/how your policy defines a disability. There are many policies that are based on your profession, and these policy types can determine whether you only get disability if you aren’t working completely, or if you can get disability while working a different job type. You also should check on the number of pathways that are available for being eligible for disability. While some policies have one, there are others that offer it for partial or total disability.

Look at the Cost of the Policy

You should also have a reasonably good idea about the cost of the policy. The policy costs are different and vary depending on various factors. For example if you have own occupation riders, you will have different rules as far as waiting period and the various types of benefits are concerned. When you have graded premiums, you will be paying more and this could also impact the overall cost of your policy. These graded premiums start with lower amounts initially and then they move up with time. The break period usually are around 10 years and could be less or more.

What About Tax Benefits

While understanding the definition of disability is important, you also should know whether the benefits that you get are taxable. In case it is taxable, you must choose a policy with higher benefits so that you get more money in your hand, in case you have to use the benefits.

Conclusion

To sum up, there are quite a few things that one must bear in mind when it comes to answering the question: “How much disability insurance for physicians do I need?” It takes quite a bit of research and only then should you move forward. Keep in mind that if you are using Medicare after the disability, in addition to your disability insurance for physicians, the wait period typically two years.