Physician disability insurance is a specific type of health insurance coverage for physicians. Most health insurance plans focus on coverage for catastrophic medical expenses and accidents. However, there are also policies that target particular groups of professionals. For example, there are disability insurance policies that are designed for nurses, therapists, and others who assist patients in hospitals and clinics. These professionals must often have specialized training, which could make obtaining coverage through traditional health insurance plans difficult or impossible.
Physician disability insurance policies also include language that defines what would trigger a benefit from the policy in the case of a disability. In most cases, this terminology, called the definition of long-term disability, is what most physicians are purchasing when they purchase insurance policies. The long-term benefit would provide a monthly benefit to the insured in case of a disability which lasted more than six months.
It is important for people to know what these benefits would be in detail. These policies generally offer a long-term benefit in the case of disability, which would last until the physician is able to resume normal work duties. In short, the longer the time period during which a person is unable to work, the higher the monthly premiums would become. Most physician disability insurance policies start out at ten percent of a physician’s usual monthly income and gradually increase to around fifty percent of the physician’s usual income. In some cases, these premiums can be deducted from gross income and completely offset any monthly cash flow healthcare professionals disability insurance.
A second piece of information that most doctors are required to provide when applying for a physician disability insurance plan is their own occupation. Most insurance companies base their eligibility criteria on information provided by the physician itself. This includes information about the number of times the physician has worked in the same specialty and/or location over the last three years. Also, the insurer will ask about the length of time spent working in such locations. Many doctors choose to omit this information, but those who do will likely receive lower premiums by choosing to disclose this information instead of not mentioning it. If this type of physician self-employed classification is available, doctors should make sure to note it on application papers.
A third, but definitely not the least important piece of information that every physician is asked to supply when applying for physician disability insurance is information about their total lifetime earnings. Some insurers require physicians to indicate whether they have ever been married or widowed, if they have had any partial disability or other type of financial security, and whether they have experienced any layoff within the past five years. Many plans also want to know if the applicant has had any bankruptcies within the last two years. Insurers will look at the health history of the applicant as a whole, including both his or her primary physician and any secondary physicians.
While these are some of the biggest questions that insurance companies ask applicants when applying for physician disability insurance, there are many other ones that most people never even think to ask. For example, many people fail to disclose their age or other information that could affect the plan’s eligibility. By using an independent agent or broker, people can avoid the questions that often catch them by surprise and focus their attention on the types of coverage that best suit their individual needs.