Disability Insurance Frequently Asked Questions

Read below to find the answers to the most commonly asked questions regarding Disability Insurance. If you don't find the answers to your questions below, please contact one of our TruSpecialty Income Protection Advisors.

What is the most important feature on a physician's individual disability policy?

The most important provision is the definition of disability. Although there are many terms that are important because they can impact your benefits, as a medical professional, you should look for a policy that defines disability in a way that’s relevant to your work. It’s important to purchase a policy that offers own-occupation / special-specific coverage. Otherwise, you might find yourself in a position where you can’t perform your specialty because of an injury or illness but you’re not considered disabled under your policy and therefore can’t receive benefits.

What does specialty-specific mean in the event of a claim?

Under a specialty-specific definition of disability, monthly benefits are payable if you are unable to perform your medical specialty, even if you can work in another occupation. Under other definitions of disability, you might not be eligible for disability benefits if you can work in another occupation or choose to do so. This in important because other occupations may pay significantly less. You’ve invested time and money into your specialty, so it makes sense to protect it.

My employer provides disability insurance. Do I still need individual coverage?

An employer-provided policy is better than nothing, but it may not provide sufficient coverage on its own. One issue is that the monthly caps are usually quite low, so high earners who qualify for benefits receive a smaller percentage of their income. Physicians across the country have realized the value of individual coverage since it usually has more comprehensive language than group coverage and layers on to any employer-provided benefit to provide the maximum protection possible. There are other reasons to consider individual coverage, as well, including the fact that the benefits are usually tax-free, further increasing the amount of replacement income that beneficiaries can receive. Additionally, individual disability benefits are portable.

What does it mean to have portable disability coverage and why is that important?

Because of the dynamic nature of health care markets these days, physicians will often move from one city to another and also from one employer to another in search of the best position. Some physicians will leave an employer in order to start their own practice. These career changes can be particularly common during the early part of a physician’s career. For this reason, physicians need a disability insurance option that can keep up with their movement. Portable coverage refers to an insurance policy that can move with a physician. Similar to group life insurance policies, group disability insurance policies that are provided by an employer often lack portability. If you change jobs, you lose coverage. Individual disability insurance is portable, so you don’t have to worry about qualifying for coverage again or losing your benefits if you decide to change jobs.

How long does an income protection policy pay benefits?

If you qualify for a disability, how long will you receive disability benefits? It depends on the benefit period covered under the terms of your policy. Under some policies, benefits may stop in just two years, even if your disability is still preventing you from working. Other policies may offer a much longer benefit period. With some policies, the benefit period doesn’t end until you reach retirement age. Additionally, some policies may impose different benefit periods on different types of disabilities. It’s therefore very important to consider the benefit period carefully when deciding on a policy.

What is the maximum benefit period?

In some cases, beneficiaries may recover from their disability and return to work, ending the need for disability benefits. However, some disabilities are permanent. If you experience a permanent or very long-lasting disability, how long you can continue to receive benefits depends on the maximum benefit period. Under some policies, this may be a set number of years, such as two years or ten years. Other policies continue pay benefits until the policyholder reaches a certain age, often age 67.

What is an elimination period?

The elimination period is another term for waiting period. It’s the amount of time that must pass before benefits are due. For example, if you choose a policy with a 90-day elimination period, you must be disabled for longer than 90 days to qualify for benefits. Some policies offer shorter elimination periods, but others have much longer elimination periods. This is a policy feature that can be used to compare different disability insurance options.