Make sure your income is protected if you're too sick or injured to earn a paycheck. Protect your financial future and your lifestyle.
Disability Income Insurance gives you the opportunity to customize coverage to fit your career stage. Whether you’re a young physician looking for solid income protection that fits your budget, or an established physician interested in more disability coverage options, Disability Insurance offers options, benefits and features designed to meet your income protection goals throughout your career.
Choose Your Definition Of Disability
Every insurance carrier has a specific definition of disability that you must meet to receive benefits. And generally speaking, these definitions fall into two main categories:
- Own occupation: a person is considered disabled if they are no longer able to perform their own occupation as performed in the national economy.
- Any occupation: a person is considered disabled if they are unable to perform any occupation for which the person is suited by education, training, or experience.
The distinction can be critical, especially for highly paid professionals receiving disability benefits. An "own occupation” definition will be important for these professionals to protect the occupation they have achieved, versus the "any occupation” definition, which will use a broader set of occupations to determine continued disability.
Most Common Questions About Disability Insurance
The cost of a disability policy – especially an individual policy – can vary greatly based on benefit length and amount, age, gender, occupation, and riders, but expect to pay between 1 to 3 percent of your annual salary. That means a person making $100,000 can expect to pay between $83 - $250 per month.
The two main types of disability insurance are short-term disability insurance and long-term disability insurance.
- Short-term policies provide benefits for a limited period, such as a few weeks or a few months. Payments start after a short waiting period — often one or two weeks. This type of insurance, usually available through an employer, is designed to cover temporary medical conditions or injuries that prevent you from working.
- Long-term disability insurance pays for a longer period. Policies differ, but benefits can last several years — even until the disabled person reaches retirement age, or is able to return to work. This type of plan can help you maintain your lifestyle if a more serious or even permanent disability prevents you from earning income for years.
Anyone who relies on their income to support themselves or their family should consider disability insurance. It can help provide financial support if you are unable to work due to an illness or injury that leaves you disabled and unable to earn an income.
While many people get coverage from their employer, self-employed individuals and business owners should also look into getting a policy, as a disability could not only threaten their income but the viability of their business. In addition to protecting your personal income, disability insurance for business owners can help protect the key areas your absence would impact, including:
- Coverage for business expenses.
- Help protect your ability to pay business loans.
- Protect your firm if your business partner becomes too sick or injured to work.
The answer will depend on who pays the premium, and at what point the premium is deducted. If you pay the premium with post-tax dollars, the disability payments will be tax-free, which helps payments go farther. Conversely, if your employer pays the insurance premium, or the premium is paid on a pre-tax basis, the disability benefit may be subject to tax, reducing the benefit amount you receive.
Individual disability insurance can be an excellent option for anyone who doesn’t receive disability coverage through work, including the self-employed.