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Review of the Principal Disability Plan for Physicians
What is Own Specialty Disability Insurance
Own Specialty Disability Insurance is a type of disability plan designed specifically for physicians. It protects you from any sickness or injury that may prevent you from working in your medical specialty by providing you with a tax-free income replacement. A True Own Specialty Disability policy will continue to pay your full tax-free benefit even if you work in another occupation, regardless of the income you may earn working in another occupation.
Does Principal offer True Own Specialty Disability Insurance to Physicians?
Principal offers True Own Specialty Disability Insurance to Physicians. According to Principal, if you include their Regular Occupation Rider, your disability policy will pay your full tax-free benefit if a sickness or injury prevents you from performing the main duties of your medical specialty even if you are working in another occupation.
Principal Optional Riders
Adding riders to your disability plan enhance your coverage by providing you with added protection to protect you during your time of need. Here is a list of the typical riders offered through a Principal disability policy:
- Cost of Living Adjustment (COLA)
- Partial Disability Rider (Residual)
- Benefit Update Rider
- Catastrophic Disability Rider (CAT)
What’s Unique About the Principal Policy?
- Principal Offers Extended Total Disability Rider. With this feature, if your Total Disability begins before your age of 55 and you remain continuously disabled to the age of 65, you may qualify to receive up to 100 times your regular monthly disability benefit beyond the age of 65.
- Principal Provides you with a Capital Sum Rider. This feature pays you a 1-time lump sum benefit worth 12 months of your regular monthly benefit if your disability involves a permanent loss of sight in at least one eye, or the permanent loss of use of at least one hand or one foot.
Conclusion
Principal is considered one of the “Big 7” carriers that offer physicians a True Own Specialty Disability policy. The other 6 carriers are Ameritas, Guardian, Mutual of Omaha, MassMutual, Ohio National and The Standard.
Principal offers a preferred definition of Total Disability through their Regular Occupation Rider that pays your full benefit if you are disabled from working in your medical specialty even if you elect to work in another occupation.
Principal offers a wide variety of riders to enhance your coverage.
In general we find that Principal offers physicians a great product and they are very competitively priced. Qualifying for an Own Specialty disability policy through Principal may save you thousands a year when compared to some of the other BIG 7 carriers.
To conclude, If you are a physician or dentist and you purchase a Principal policy along with adding their Regular Occupation Rider, then you have a solid True Own Specialty Disability Insurance plan.