Mistakes Doctors Make When Buying Disability Insurance

Doctors make lots of mistakes when buying disability insurance, but the biggest mistake by far is not getting insurance at all. There are four other common mistakes. Number one Buying a policy through a captive agent. Captive agents are subsidized and incentivized by specific insurance companies. In return, agents are obligated to sell policies for that insurance company irrespective of the client's best interest. An independent agent or broker serves their client's best interests rather than the insurance companies. There are still conflicts of interest, but they are smaller. Even independent agents may receive higher commissions or other benefits for selling policies from one company over another. Number two Focusing too much on cost Many physicians shopping for coverage focus too much on low cost instead of attaining comprehensive coverage. Removing the own occupation rider or the partial residual disability rider is not worth the cheaper premium because the conditions to file a claim are so much more limited than they end up paying for coverage they'll never qualify for. Number three Waiting too long to apply don't wait until you graduate residency or fellowship to apply. In order to save money, many individual disability characters offer deep discounts for residents and fellows. These discounts often lock in for any increases in the future. In addition, residents and fellows may be offered coverage without a physical exam or blood testing. As an attending physician, even a small policy can trigger blood, urine, and paramedical examinations. Number four Waiting until something happens to buy a plan Policies are issued based on medical underwriting. Once you're issued a policy, it cannot be taken away or repriced even if your health changes. If you wait to buy a policy until you're symptomatic or have been diagnosed with a medical problem, chances are you'll end up with one or more exclusions and or modifications of benefits.

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