MR Insurance - are you recommending to bypass the individual DI insurance while in residency (which has not been my 'take' on researching all this and from most of the post above)?
Absolutely NOT. Perhaps I did not explain myself properly but I would not typically suggest you bypass individual DI options while in residency.
Also, I read thru the link (NWM vs others) and there is a lot to try and piece out. It seems like the 2 most common carriers argued in the discussion, NW and Guardian, both have solid contracts, but it comes down to how the language is interpretted or what your disability is...then it's still a guessing game on how the contract will be applied to your given disability. I kept reading each post and I flip-flopped sides for the last 2 hours!
You touched on a very important point which is that it comes down to what your disability is. If you knew in advance how, when and for how long you will be disabled this would be really easy. The problem is that you do not, and hopefully will never be disabled anyway. This is the primary reason why purchasing a comprehensive policy that covers more situations is better.
Plus, what do you mean by defin of disability and residual disability benefits? Again, from the link...after reading all of it, I'm not sure I understand it any better? The NWM agents were very excited about the new language of their DI contract and their 'own occupation coverage' that was updated in 2009. They mentioned that they could sell me a Guardian policy, but it's not the best for me and that most of their clients have switched over to NWM since '09. Thoughts?
The definition of Total disability and description of Residual benefits are different between these two carriers. With Guardian, you are getting a Pure Own Occupation as that forum explained. It states that you will be considered totally disabled if an injury or illness prevents you from performing the material and substantial duties of your occupation, which may be deemed as your medical specialty. This means that if you become unable to practice Anesthesiology, you can move into a different specialty or occupation and still receive benefits for Total disability. With Northwestern this is not the case. In this type of scenario Northwesterns contract would reduce your benefit by any earned income you are receiving.
Now, does that mean Guardian is better. Not necessarily, but it does mean that you are purchasing a more liberal definition, which is likely to pay more benefits in more situations. Since we do not know what disability if any, you will experience, a more liberal definition is better. Wouldn't you agree?
Residual disability benefits pay benefits for partial disability claims. The structure that Guardian provides, although similar to many other contracts has a slightly more competetive edge. In the first 12 months of a residual claim, Guardian will pay you for your loss of income (must be greater than 15% loss), up to the maximum benefit or your original income. Most companies will only pay a proportionate benefit, meaning a 30% loss of income qualifies for 30% of monthly benefit.
Additionally, some companies will only pay partial claims when there is a loss of income and duties or time. Guardian pays solely on loss of income, which means less requirements and higher probability of being paid.
Do not get me wrong however. The key to purchasing Disability insurance is not necessarily the the product you buy but the agent you work with. Working with an experienced agent will work wonders.
For example if you are a resident Anesthesiologist, neither Guardian nor Northwestern may be the right choice. If you haven't been informed already, Northwestern limits their benefits for mental/nervous conditions to 24-months - meaning if you are disabled due to mental/nervous disorder, you will only qualify for a maximum benefit period of 24-months. Typically, you can look to other carriers in order to avoid this, but as an Anesthesiologist it becomes even more difficult. Guardian for example, does not usually have this limitation, but they do for Anesthesiologists. An experienced agent is likely to inform you of this, and perhaps recommend you consider purchasing two policies from two different insurers. One which provides excellent benefits overall, like Guardian and then another which may have slightly less quality provisions but will not limit the benefits for mental/nervous issues.
Again it comes back to the on thing you mentioned which is, it depends on the exact situation at time of disability. Since we cannot see into the future, the best we can do is cover as many avenues as possible.
Helpful?
