Disability insurance?

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onchopeful1

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New attending. How much disability insurance should I get? I know it’s a personal amount but in general, given our overall high earning salary and likelihood for increase lifestyle over time, what would be a good amount?
 
onchopeful1 said:
New attending. How much disability insurance should I get? I know it’s a personal amount but in general, given our overall high earning salary and likelihood for increase lifestyle over time, what would be a good amount?
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What are your monthly expenses?

Typically, if you became disabled, it should cover at least your monthly expenses so there is minimal change to your lifestyle.

There are riders you can purchase to allow for future increases to the amount depending on your income.
 
As much as they will give you. Make sure you have own occupation disability
 
a partner in my future private practice has 80k/month of disability insurance (960k/year). Disability insurance income is not taxed.

They have a 8000 sqft mansion, 2 kids who've attending private school ever since they were still in diapers, and a non-working spouse. But even then...
 
osprey099 said:
a partner in my future private practice has 80k/month of disability insurance (960k/year). Disability insurance income is not taxed.

They have a 8000 sqft mansion, 2 kids who've attending private school ever since they were still in diapers, and a non-working spouse. But even then...
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That would be very odd to have $80k of monthly benefit, most companies will only issue $30-$35k and participate with other carriers coverage to $35-$40k, it takes about $1.5 million of income to qualify for the $35k. One could go to a Lloyds product but then most of the time that product is only a 3 years contract with a 5 year benefit period.

You should figure out the benefit capacity you have with the income you earn and then look at your expenses to determine how much you need on a monthly basis.
 
MD Financial Services Scott said:
That would be very odd to have $80k of monthly benefit, most companies will only issue $30-$35k and participate with other carriers coverage to $35-$40k, it takes about $1.5 million of income to qualify for the $35k. One could go to a Lloyds product but then most of the time that product is only a 3 years contract with a 5 year benefit period.

You should figure out the benefit capacity you have with the income you earn and then look at your expenses to determine how much you need on a monthly basis.
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Is 80k/monthly disability benefit impossible then? Maybe they are lying to me to entice me to sign with their practice...
 
osprey099 said:
Is 80k/monthly disability benefit impossible then? Maybe they are lying to me to entice me to sign with their practice...
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Scott definitely knows his stuff. If he says it I would believe him.

It could be they maxed out their disability insurance and the other docs just don’t know what they’re talking about, or they think they have an 80k policy when they don’t, or maybe they have some weird alternative product like the Lloyd’s thing… but yeah they might just be talking a big talk because they’re weirdos
 
osprey099 said:
Is 80k/monthly disability benefit impossible then? Maybe they are lying to me to entice me to sign with their practice...
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People get mistaken on what they have all of the time so that could be it. They may also be adding business overhead benefits, which can be as much as $50k, plus $30k of personal/group disability. I never want to say that someone is not being truthful, but I would guess that they are adding things together wrong, or their 'bravado' has gotten the better of them.
 
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