As a recognized leader in establishing innovative physician disability insurance solutions, DI 4 MDS is constantly negotiating with insurance carriers to accept a larger amount of risk for our physician clients. There are two major problems when it comes to adequately protecting physician income from the risk of disability:
1. Medical history restricting disability insurance coverage options.
-About 1 in 3 physicians applying for a disability insurance policy are either declined for coverage or receive a limited policy due to a pre-existing condition. Some examples of pre-existing conditions include diabetes, transient ischemic attacks (stroke), cancer, psychiatric medications/therapy, etc. Now, we have made it possible for physicians with pre-existing conditions to be guaranteed disability coverage on an individual basis. This is a momentous development which opens up coverage to a large number of physicians who are underinsured from a disability income planning standpoint.
2. Traditional insurance company issue and participation limits which cap income replacement at 25-60%.
The higher your income, the less of it you can replace with disability insurance. Unfortunately, this has meant that high earning physicians are penalized in the event they become unable to practice their medical specialty due to disability. Could you thrive, or even survive on 50% or less of your current income? Disability income should not only cover short term financial obligations, it should also provide for long term financial goals as well as provide extra income should a disability lead to increased expenses (caretakers, house modifications, etc). Now, we have made it possible for physicians to replace up to 80% of their income in the event of disability.
Case study –
Healthy and Working Vascular Surgeon:
Monthly earned income $60,000
Cervical degeneration leading to disability from Vascular Surgery:
$17,000/month benefit from individually purchased policy
$12,000/month benefit from employer paid taxable group policy
Total disability income benefit:
48% of earned income
This Vascular Surgeon requires $30,000/month to cover living expenses, and another $10,000/month to cover retirement and legacy planning. Now, we have negotiated with the insurance company marketplace to provide a guaranteed issue individual disability policy with a monthly benefit of $19,000 to bring his total disability coverage to 80% of his earned income. There are cases like this all over the country.
If you have either been declined disability coverage or are looking to increase your coverage to 80% of your earned income, contact us today!