Own Specialty Disability Insurance for Physicians and Dentists

True Own Specialty disability insurance defined in the definition section of your policy under "Total Disability" or "Totally Disabled" and this is the language the carrier uses to determine when, or if, they consider you disabled and eligible to receive your benefit payments.

Being disabled should not be simply defined as a sickness or injury that prevents you from "working." Based on your education and experience in becoming a physician, it is going to take a lot to prevent you from "working" in some capacity.

Your disability insurance policy must define you as disabled if a sickness or injury makes it so you are no longer able, or you are no longer comfortable, working as a physician – and it should not penalize you if you engage in another occupation.

As with many important decisions; the devil is in the details… This is very true when it comes to disability insurance, and the carriers make the details and specifics of their policies a challenge to understand.

Does your policy say: "We will consider you disabled when you cannot perform the duties as a physician, and you prove to us that you cannot perform the duties of any other reasonable occupation?"

This definition is offered by some group policies and is not desirable.

Does your policy say: "We will consider you disabled when you cannot perform the duties as a physician, so long as you are not gainfully employed in any other occupation from now until the age of 65".

This definition is offered through some group policies, the AMA and other professional medical association plans, and is also not desirable.

Your policy should say: "You are considered totally disabled when you are unable to work as a physician, and we will still consider you totally disabled even if you work in another occupation".

This definition of disabled is the only one considered TRUE Own Specialty, and the type of coverage you should have. This means if you cannot continue working as a physician, you can do something else AND collect your tax-free disability benefit.

True Own Specialty Disability Insurance can only be purchased indivdiually.  It is not offered through Group Sponosored Long Term Disaiblity plans or professional Associaiton plans through associations like the AMA - ADA - ACOG - ACP - AAP - ACS, etc.

Currently the only six disability carriers that offer True Own Specialty Disability Insurance are Ameritas - Guardian - MassMutual - Ohio National - Principal - and The Standard.

Employer-sponsored group disability insurance does not offer the same level of coverage as Indivudal Own Specialty Disability Insurance.  With your employer plan:

• You could lose your benefit if you change jobs or if your employer switches the group benefits they offer.
• Your policy is subject to changes by the insurance carrier and your employer.
• The Definition for Total Disability prevents you from collecting your full disability benefit if you are working or earning an income in another occupation.
• Benefits are often taxable since your employer is paying the premium.

The best time to buy disability insurance is when you don't need disability insurance. In order to qualify for disability insurance, you must first apply for the benefit, so the earlier the better. We encourage that you start with a plan early during your residency when you are at your healthiest. Securing a plan during residency and adding a future purchase option protects your future insurability as your income increases regardless of your health.

The most important feature of your disability insurance policy is the definition of Total Disability. Total Disability defines when the insurance carrier considers you to be totally disabled and eligible for your full monthly disability benefit. Physicians are advised to obtain a policy with a definition of Total Disability that does not contain language that prohibits you from working in another occupation. Physicians refer to this plan as an Own Specialty Disability policy because the definition of Total Disability will consider you totally disabled even if you elect to work in another occupation. Currently, only six carriers offer such a policy to physicians: Ameritas - Guardian - MassMutual - Ohio National - Principal - The Standard.

If you pay for your own private disability policy, your benefits will be paid to you Tax-Free. During your residency, the maximum benefit you are eligible for is $5,000 per month. If you add a Future Purchase Rider you will be permitted to increase your benefit as your income increases regardless of your health. As your income increases so should your disability benefit and the amount you qualify for is based on your income at the time you apply for a new policy or an increase in coverage. The more income you earn, the more disability you should have. As a physician, the maximum combined individual own specialty benefit you can own is $30,000 per month.