Disability Insurance

[Lex81]

Hey guys,

I'm thinking I might be getting fleeced for my disability and was wondering what everyone else is doing. I put in a policy with Guardian a few years ago at the end of residency. I pay ~$300/month. I'm early 30's and completely healthy, strong FHx of minimal disease/longevity. It comes to this for LTD:

-Premium is ~$300/month
~Benefit is $9k/mo after 90 days till age 65
-Residual Risability Rider
-Future Increase Rider

I absolutely abhor trying to understand this stuff, but I get the sense I might be overpaying when talking to some other colleagues, but it also seems like very good LTD. What are you guys paying?

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[VA Hopeful Dr]

I think that's fine. I pay $120/month for $4,300/month. Biggest thing is in the details. Is it own-specialty (more specific than just own-occupation)? Are you allowed to make a certain amount of money once you're disabled and the policy not stop paying out? Stuff like that.

 

[Rendar5]

Hey guys,

I'm thinking I might be getting fleeced for my disability and was wondering what everyone else is doing. I put in a policy with Guardian a few years ago at the end of residency. I pay ~$300/month. I'm early 30's and completely healthy, strong FHx of minimal disease/longevity. It comes to this for LTD:

-Premium is ~$300/month
~Benefit is $9k/mo after 90 days till age 65
-Residual Risability Rider
-Future Increase Rider

I absolutely abhor trying to understand this stuff, but I get the sense I might be overpaying when talking to some other colleagues, but it also seems like very good LTD. What are you guys paying?

I pay more for more. Other people who pay less end up with less. yours sounds good long term but not short term. Break your arm and need surgery? You won't see a touch of your disability ifyoureback at work within 12.5 weeks. Break your back and you'll get half salary til retirement

 

[VA Hopeful Dr]

I pay more for more. Other people who pay less end up with less. yours sounds good long term but not short term. Break your arm and need surgery? You won't see a touch of your disability ifyoureback at work within 12.5 weeks. Break your back and you'll get half salary til retirement

Every job I've ever had did 100% short term and 60% long term, so that long term in the OP could be his 40% remaining long term and the rest could be taken care of by the employer.

 

[The White Coat Investor]

Hey guys,

I'm thinking I might be getting fleeced for my disability and was wondering what everyone else is doing. I put in a policy with Guardian a few years ago at the end of residency. I pay ~$300/month. I'm early 30's and completely healthy, strong FHx of minimal disease/longevity. It comes to this for LTD:

-Premium is ~$300/month
~Benefit is $9k/mo after 90 days till age 65
-Residual Risability Rider
-Future Increase Rider

I absolutely abhor trying to understand this stuff, but I get the sense I might be overpaying when talking to some other colleagues, but it also seems like very good LTD. What are you guys paying?

$300/$9000= 3.3%. That's about the going rate. Doesn't mean you can't get something slightly better for you from Principal or Standard or whoever. But you're not being ripped off. That's what this stuff costs.

 

[future_dr_house]

Mine is 440 per month for 15k or 2.94%. This is through mass mutual, own occupation, 3% cola, residual disability rider, non cancellable. It's expensive but you get what you pay for.


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[Groove]

That's a reasonable rate. I have a 10K policy and will likely be upping it to 15K in the next few months depending on the premium.

 

[MarkFinancialAdvisor]

Hey guys,

I'm thinking I might be getting fleeced for my disability and was wondering what everyone else is doing. I put in a policy with Guardian a few years ago at the end of residency. I pay ~$300/month. I'm early 30's and completely healthy, strong FHx of minimal disease/longevity. It comes to this for LTD:

-Premium is ~$300/month
~Benefit is $9k/mo after 90 days till age 65
-Residual Risability Rider
-Future Increase Rider

I absolutely abhor trying to understand this stuff, but I get the sense I might be overpaying when talking to some other colleagues, but it also seems like very good LTD. What are you guys paying?

You have an excellent policy. Guardian/Berkshire is one of the top disability carriers for doctors. If you qualify for certain discounts, Principal, Standard or MetLife may have a lower monthly premium.

 

[MD Financial Services Scott]

Disability insurance, from a cost per dollar of coverage, is all priced on age, gender, medical specialty, and state of residency. Once those basics are populated into the systems then it is a matter of your personal health and any discounts that can be applied to your particular case. Most contracts for $9k as a resident (late 20's early 30's) would be around $200-$250 per month. You might be paying $500-$1000 per year to much so look around there are ways to put that cash back in your pocket.

 

[DrFamily7]

What's so great about guardian compared to other carriers? Their rates seem to be much higher than the others.

And how do we obtain discounts? Does Guardian offer any discounts?

 

[Birdstrike]

I have two policies that together, cover me for 120% of my current salary, if disabled.

Please somebody, chop my pinky finger off. Please? Pretty please!?

 

[Hamhock]

I am currently less interested in which company or offer to take (as that seems to me to be something tangible and legible that I can analyze)...I am more interested in how one finds an agent who will offer proposals from multiple companies.

Today I went to a guy who "offers" nearly all big name insurances, but he only discussed Guardian and deflected even my most direct requests for information from other companies.

In a different thread someone even posted https://www.doctordisability.com/...I can't find the thread to see if they were serious in their recommendation. However, online seems less sketchy to me than some of the other salesman I have encountered recently!

Please advise.

And, is there somewhere that lists the percent of claims that resulted in benefits for each company? (maybe I am dreaming here)

Thanks,
HH

Also: how are we supposed to assess the financial stability of these companies? Who says they are going to be around to pay out for 15 years after I have paid 10 years of premiums?

 

[ccfccp]

I might have been the one who posted the doctordisability site. I had a very good experience with them. Made if very easy. Gave me several options with companies. Pre filled out a lot of the paperwork. I double checked some of the prices and they were the same or better than I could get by going direct to the companies. They weren't particularly pushy and didn't really try to sell me anything I didn't need. They also check with me every year to see if I need anything else or want to change anything. And, other than maybe one or two emails per year (around the time I could exercise my future option) to make sure I'm okay, they don't spam up my email.

 

[The White Coat Investor]

Emergency docs should generally include Principal on their short list. Every quote I've seen for an emergency doc had Principal as the near cheapest/cheapest.

If you're in the military, be sure to include Standard.

The only way to know if you're paying too much is to shop all over again. Do it right this time.

http://www.acepnow.com/article/buy-disability-insurance/

 

[Hercules]

I'll second the doctorsdisability.com recommendation

 

[TooMuchResearch]

I have two policies that together, cover me for 120% of my current salary, if disabled.

Please somebody, chop my pinky finger off. Please? Pretty please!?

I got you, buddy.

 

[TooMuchResearch]

White Coat's site was useful - he has enough DI guest posters that one of them will probably provide reasonable info by email.

@ColoradoScott on SDN may be a source too.

 

[MD Financial Services Scott]

There are a number of people who post on this site and WCI that are good at their craft, we certainly will shop the market for anyone that needs or wants to look at disability insurance. I was disabled from 1990 to 1993 so have been through the process myself, not fun and once my rehabilitation was complete that is when I started in the disability insurance business. A little late to do myself good but I have unique insight! There are a number of great producers out there, a few I think highly of are Larry Keller, Gary Baird, Davey Castleberry they are some of the more knowledgeable individuals in the country on this topic for design, implementation, product integration and pricing, at least that is my opinion.

When you look at a producer they really should visit with you about all coverage contracts as it does come down to what one is....(age, gender, med specialty, and the state you live in). As for ER most of them (depending upon the state) will be looked on favorably by Principal, just the same as OBGYN are looked at favorably by Ameritas, most surgeons by MetLife, Urology by Guardian. I find Standard, where it is a great company and run by a friend of mine by the name of Doug Waters, is a priced a bit high as of the moment for most medical practitioners. Don't over look Mass Mutual and Ohio National as they too are both in the market and are starting to find their niche as well.

 

[MD Financial Services Scott]

I have two policies that together, cover me for 120% of my current salary, if disabled.

Please somebody, chop my pinky finger off. Please? Pretty please!?

Double check the contracts to make sure they don't have an offset provision where you are paying for something that you won't qualify to receive do to the amount of coverage you have purchased. Most contracts (group, employer, or association plans will have an offset section in their policy) will state that "we will not provide coverage in excess of 66%/70% or collectively between all plans 80% of your income". Really review to make sure you are not writing a check which an insurance company is cashing but yet they don't have liability for risk you thought you were placing with them. When a carrier does not ask you for disclosure of what your current policies are upon applying for their policy YOU are the one responsible for understanding any coordination of benefits!

 

[Birdstrike]

Double check the contracts to make sure they don't have an offset provision where you are paying for something that you won't qualify to receive do to the amount of coverage you have purchased. Most contracts (group, employer, or association plans will have an offset section in their policy) will state that "we will not provide coverage in excess of 66%/70% or collectively between all plans 80% of your income". Really review to make sure you are not writing a check which an insurance company is cashing but yet they don't have liability for risk you thought you were placing with them. When a carrier does not ask you for disclosure of what your current policies are upon applying for their policy YOU are the one responsible for understanding any coordination of benefits!

Both agents on each side have assured me they don't offset, but I think I will review the contracts again, in more detail myself based on what you're saying. Good info. Thanks.

 

[MD Financial Services Scott]

If they are individual contracts then they probably won't offset but then all of the carriers would have had a disclosure on the application of "all coverage in place, applied for, or will be eligible for in the next 12 months"....just make sure the last policy your purchased appropriately disclosed to the carrier all coverage already in place and you should be in good shape. To be Very certain just get the agent to put in writing on their letterhead that the policy will pay to you regardless of other coverage's! Might as well get them committed to the process as well. Finally the area this could be is if you have a Catastrophic benefit the agent is including in the total % of income covered, the carriers know that benefit almost never pays out and thus they don't count it as a potential conflict of coverage quantity.