Disability Insurance

[drroberto]

Hi everyone!
I am just wondering what your thoughts are for someone like myself who only has disability insurance through employment. I am 29yo physician, earning less than $200K, healthy, in great shape, but the disability insurance offered through my employers only covers me for 2 1/2 times of my annual salary and I am on my own!!
I would like to know if you guys actually buy extra disability insurance, which company, at what rate, different types and generally any good advice on disability insurance for someone in my situation.
Thanks a million!!
Roberto Carlos the great

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[southerndoc]

You cannot get more coverage than 60% of your usual income (does not include bonuses). I believe this is even federally regulated, and I've been advised that if you exceed it, you can face fines and cancellation of your disability insurance.

Maybe I am confused what you are asking. If you are stating that your monthly benefit is 2.5 times your current monthly salary, then that is exceeding the 60% rule. If you are stating that your total benefits payable to you are limited to 2.5 times your salary, then I would say you need supplemental disability insurance. Most policies pay until you are 65, but some go to 70.

 

[drroberto]

Thanks for the reply!
The disability insurance offered by my employers is 2 1/2 times my annual salary. For eg, if I had a stroke and my annual salary is 160K, I will be given a lump sum of 380K and nothing else.
Do physicians actually purchase additional disability insurance? Which company, types?
Thanks again!
Roberto Carlos

 

[southerndoc]

Yes, physicians do purchase disability insurance. We go through our member societies or other brokers. You can Google for brokers or you can ask your hospital who you deal with.

Please do not post any links to disability insurance brokers as they will be removed.

 

[Tenesma]

get own-occupation disability insurance - you can usually get your after tax amount back... so if your salary is 200k then your after tax is probably 120k which is about 10k/month..... it will cost you... but is worth it for so many different reasons

the problem with having pre-existing group insurance coverage is that your individual coverage will always take that amount into consideration...

for the other readers - ALWAYS get individual coverage FIRST before getting group coverage so that they become ADDITIVE instead of SYNERGISTIC..

 

[m3unsure]

Are there good disability insurances for residents?

Like when you can't do medicine, you still are covered.

What are the best ones in Chicago?

 

[The White Coat Investor]

Thanks for the reply!
The disability insurance offered by my employers is 2 1/2 times my annual salary. For eg, if I had a stroke and my annual salary is 160K, I will be given a lump sum of 380K and nothing else.
Do physicians actually purchase additional disability insurance? Which company, types?
Thanks again!
Roberto Carlos

That's a weird policy. Most disability pays you a certain amount per month. For instance, the policy I have pays $3500/month tax-free beginning 3 months after I'm disabled. It is own occupation, specialty specific with a couple of other riders I felt were worth the money including residual disability and an inflation rider. I pay $115/month in after-tax money, or about 3.4% of the benefit.

The main companies out there for my specialty are Standard and Berkshire.

 

[southerndoc]

The main companies out there for my specialty are Standard and Berkshire.

Met and Hartford Life also offer policies. I think ACEP partners with Hartford Life.

I have the Protector through Berkshire.