Should You Buy Disability Insurance from a Professional Association?

Professional associations like ASAP offer benefits such as insurance policies to their members for various reasons. First, they understand these are important financial products for their members to purchase. When physicians become disabled without disability insurance, especially early in their careers, a financial catastrophe often occurs. Second, some doctors have a difficult time obtaining disability insurance on the open market due to health problems or dangerous habits. Association group disability insurance policies are good supplemental plans. They generally have limitations compared to fully underwritten policies. They're not non cancelable and guaranteed renewable. The premium rates are not guaranteed. Sometimes they do not include an own occupation. Definition of Disability There could be a requirement where you must be totally disabled before you can collect residual disability benefits. Generally, there is no recovery benefit. Limitations exist for claims related to mental or nervous disorders and self reported symptoms. There's a cap on the insurance on the inflation protection option or COLA rider. The guaranteed future purchase option is limited as well. There are advantages to association policies and they often ask fewer health questions, do not generally require a physical, and rarely ask about dangerous hobbies such as rock climbing, scuba diving, flying or skydiving. For these doctors, the association policy may be their only opportunity to get the coverage they need or want at a reasonable price.

The hosts of the White Coat Investor are not licensed accountants, attorneys or financial advisors. This podcast is for your entertainment and information only. It should not be considered professional or personalized financial advice. You should consult the appropriate professional for specific advice relating to your situation.