The importance of purchasing a quality product

When you purchase an insurance policy, you are really purchasing money which may be delivered at an unknown future date.  This policy will outline the terms under which these payments will be made.  This is why choosing a quality product will be a determinant factor at time of claim.

The disability insurance policy should have an “Own Occupation” definition of disabilty

The definition of total disability is the provision which the insurance company uses to determine whether or not you are eligible for disability benefits when you file a claim. 

As a dentist, we recommend that the total disability should be defined as:  Pays benefits if you are unable to perform the substantial duties of your regular occupation.  This is what’s called “Own occupation” definition of disability.  It will protect your occupation of dentist even if you are able to do some other kind of work.

Have the most liberal definition of residual/partial disability

Many residents may not be as aware of the nuances of how one's claim is paid by an insurance company when one is recovering and goes back to his work on a partial basis.

To simplify this part of a disability insurance policy: We recommend that you own an occupation disability insurance policy that provide you with the choice at time of claim between receiving the long-term partial disability benefit (for loss of time or duties) and the proportionate disability benefit (for loss of earnings).

Cost of living benefit

Inflation is a common problem for people who are working, and the problem is compounded for a disabled individual.  The Cost of living benefit helps to protect the disabled person from the ravages of inflation.  It is important to look for a cost of living rider that uses compound interest not simple interest.

Return of premium rider

For those who never use the policy, or use it to an extent less than the money invested, this rider provides a return of all or a portion of this money.  This rider is basically “insurance against never being disabled”.  They will get their money back when it’s over. 

Future income option

This allows you to obtain more disability insurance without having to show evidence of medical insurability, you just have to show that your income would justify more insurance. This rider is especially important when you are new in practice and you expect your income to increase

We can tell you more about riders and how these vary among insurance companies.