Three Advantages of Individual Disability Insurance for Physicians

Today, most physicians have access to group long term disability insurance for physicians. Choosing this employer-based coverage can easily seem like the most reasonable and convenient option. However, physicians who choose group disability insurance lose out on various benefits associated with individual plans. To ensure adequate coverage, physicians should strongly consider the following advantages that individual plans offer.

  1. Stability – Group plans do not always guarantee the stability that most people expect from a disability insurance policy. A group plan may not be transferrable if a physician changes jobs, and securing new coverage later may be problematic. Group plans can also be vulnerable to rate changes or cancellation.
  2. Flexibility – In addition to transferability, individual plans allow more customizable coverage amounts. An individual plan can address a greater proportion of lost income, including bonuses. An individual plan may also feature a less strict or more occupation-specific definition of disability, resulting in greater coverage.
  3. Cost-Effectiveness – Due to the factors mentioned above, individual long term disability insurance for physicians typically offers greater or more readily available coverage. This ensures that physicians see a better return on their investment. The coverage amounts that individual plans offer can also adjust for inflation, leading to even greater returns.

Understanding the Options

Before committing to a group long term disability insurance policy, physicians should at least compare a few equivalent individual policies. Individual plans can often provide a more tailored fit and more comprehensive coverage, and these features should not be undervalued. Both of these characteristics can pay off significantly in the event of a claim.