Key clauses that should be found in a disability insurance policy

When you purchase an insurance policy, you are really purchasing money that you will receive in the future based on the terms of the policy.  This is why it is essential that the policy contain the best possible terms when it comes time to make a claim.

Your disability insurance policy should contain an “Own Occupation” definition

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

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

Ensure that you have the broadest possible definition of residual/partial disability

Many physicians may not be fully aware of the nuances of how a claim is paid by an insurance company when a person is recovering and goes back to work on a part-time basis.
To simplify this part of a disability insurance policy, we recommend that you obtain an occupation disability insurance policy that gives you the choice when making a claim between receiving partial benefits (for loss of time)  or residual benefit (for loss of earnings). Make sure that the partial/residual definition in your policy provides for coverage until the age of 65.

Cost-of-living benefit

Inflation is a common problem for people who are working, and the problem is compounded for disabled individuals.  The cost-of-living benefit helps protect you against the ravages of inflation.  It is important to choose a cost-of-living option that uses compound interest rather simple interest.

Return of premium option

For those who never submit a claim against their policy, or whose claims are for an amount that is less than their policy premiums, can benefit from this premium return option.  It is basically “insurance against never being disabled” that provides for the reimbursement of a portion of your premiums at a date stipulated in the policy.  This option is highly recommended and can help to substantially reduce your insurance costs over time. 

Future income option

This option allows you to obtain additional disability insurance at a later date without having to provide medical evidence; you simply have to prove that your income justifies the requested increase and your coverage will be increased without any hassles. This option is especially important when you are new to the profession and you expect your income to increase in the future.
                                                                                                                                
We can provide you with more information about the options available for the different insurance policies riders and how they vary among insurance companies.

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We will prepare a plan for you that is suitable for physicians.