It is not just important for every adult individual to earn an income but a basic necessity. It is no different for a doctor and if you look closely at his/her finances, you will find that s/he starts his/her career with a huge debt accrued from his/her student loan, which averages $200,000 for a medical graduate in America. Repaying this debt takes the average doctor at least a decade if not more, of uninterrupted debt servicing. Considering the uncertainties of life, you can fall ill or meet with an accident, become disabled for a few years, and are not able to earn an income. You will need individual disability insurance (IDI) to deal with this kind of situation.
Most if not all young doctors take the risk of disability a little too casually and point out to their group healthcare professionals insurance policy if asked about their cover against the risk of disability. Youthful exuberance can cloud opinion at times because most people are vigorous and in good health at this age. Any talk of a more comprehensive coverage against disability cannot make much impact on young and restless minds. Yet, it is a young doctor who needs such insurance more than others because studies show that one out every four millennials in the United States is likely to face some kind of disability in his/her lifetime.
Why exactly do you need to cover against disability?
The most important reason for any doctor to invest in a doctor’s disability insurance is to ensure that his/her income stream doesn’t dry up if and when s/he suffers disability for a long time. The average tenure of disability in the United States is 31 months and 90% of disabilities are caused by medical conditions and illnesses.
Illnesses that cause disability are not age-related and can affect people of all ages including young people. If you were to catch any such illness and are disabled for 2 and half years wherein you are not able to work and earn an income, only a long-term IDI physician’s disability insurance policy can help you.
Optimize your disability cover for adequate benefits
Group long-term disability insurance services won’t provide adequate income replacement compensation during claim time and will fall way short of your needs. You will need enough income replacement to pay your bills, especially the student loan repayment.
Depending solely only on a group of healthcare professionals, disability insurance for adequate income replacement can leave you with a considerable cash shortage to pay your bills. You will need a long-term IDI policy as your main cover against disability with your group’s long-term policy to complement and fill the gap in coverage.
Get professional advice and guidance to invest in the right policy
Getting adequate coverage against disability is not possible with a single long-term policy because there are coverage gaps that can only be filled up by optimizing your insurance. The best way to optimize your cover is to stack your long-term IDI policy with a group long-term policy.
Insurance optimization is not easy for folks who are not familiar with insurance products. If you are not an industry professional, it is unlikely that you would take interest in this subject. Hence, you should hire the services of a reliable disability insurance broker partner to invest in the right policy.
For more information regarding group long term disability insurance: https://www.mgis.com/solutions/group/group-long-term-disability