We touched briefly on types disablity insurance for practicing ODs. But I was hoping some of the good Doctors could shed some light on their practical experience on what to look for in disability insurance such as "own occupation". Seems to be a pretty important issue, it would be devastating to an OD to have some type of heath issue that would prevent practicing !
Disability insurance is one of those things that varies widely for different people given their own specific needs so professional financial advice is curcial but IN GENERAL:
1) Get it as SOON AS YOU GRADUATE. It will be much cheaper the earlier you get it and you will be much less likely to have any exclusions. For example, say 5 years after you graduate you hurt your back but not enough to be disabled. Then if you go to apply for disability, they may exclude any disability related to back injuries. So get it as soon as you can while you're young and healthy.
2) Own occupation is critical as well. Let's say you get your hand chopped off and you can't work as an OD but you could still work as say....a receoptionist or a teacher or a taxi driver. Your policy may provide no benefits, or very minimal benefits as they may claim that you're only 10% disabled.
3) You should try to find a policy in which the benefit INCREASES every year. You may take out a policy that gives you say $3000 a month in benefits which may be fine but unless you have a benefit increase rider, you may find yourself with a policy that pays $3000 a month twenty years from now which is going to be much less helpful.
4) Another HUGE thing to consider is a "future insurability" option. What that means is that you can INCREASE the amount of your benefit at some point in the future WITHOUT the need for another exam or underwriting. So say you start out making $70000 a year and you get a policy. They are ONLY going to insure you on what you make NOW. But say 10 years down the road, you are making $100000. Having the option to increase the benefit to the $100000 salary level without requiring another physical is a tremendous asset because God forbid something happens to you in the next 10 years you may find yourself paying a monster premium in the future to adequately insure yourself.
But again....needs vary widely. Consult a professional. All of my policies have been through Mass Mutual and I have found them to be helpful and not excessively expensive.
