Dedication and hard work are two requirements for becoming a doctor and building a practice. An illness or mishap that prevents a physician from working may not only lead to a significant loss of income, but increased debt as well. Not surprisingly, nearly 100% of physicians in the United States are covered by some level of doctor disability insurance. Many of these plans, however, are group policies which may not go far enough to maintain the income level you have worked to achieve in the event you must miss work due to a disability.
Why Choose an Individual Plan?
There are several good reasons to investigate whether or not an individual doctor disability insurance plan is right for you. Some ways in which an individual policy differs from a group plan include:
- Coverage in your own specialty
- Benefit can increase with inflation
- Rate guaranteed to age 65
- Ownership of policy – may transfer to a new job or practice
- Benefits are tax-free if you yourself pay the premium from post-tax income
Avoid Comparing by Price Alone
Group plans typically come with lower monthly premiums than single-owner policies, but the cost and benefits of a given plan may be measured by more than just the monthly expense. It is important when shopping to research the financial strength of the issuing insurance company, as well as understand how the company defines disability. Be certain the policy you buy is sufficient to protect the practice you have built.