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Disability Insurance
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We assist Faculty Physicians,
Residents, Interns and Medical Students with obtaining
and managing their private disability insurance
programs. By starting a plan now, your policy and rate
(based on your age at the time you purchased your
policy) are guaranteed to age 65.
This means that the insurer can
not later increase your rates, modify your contract, or
cancel your policy for any reason, including your
disability. Additionally, as your income increases, you
will have the ability to increase your coverage
regardless if there has been any changes |
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“You are the gateway to financial security! You
personally made it very easy for me to obtain
that which makes me feel secure.”
-- Dr. Y, UCLA Dept. of Radiology
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in your health. |
We are familiar with the group long-term
disability (LTD) benefits provided to both faculty and
residents physicians at all Los Angeles based training
hospitals and we have designed a supplemental disability
program for those physicians.
What you should know about Disability Insurance
Contractual Provisions to be Included in a Quality
Policy:
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Non-Cancelable & Guaranteed Renewable
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Own Occupation (Specialty
Specific)
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Total and Partial/Residual
Benefits
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Lifetime Benefit Period
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Guaranteed Insurability
Rider (FIO)
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Inflation/Cost of Living
Rider (COLA/AIR)
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Financially Strong Insurer
- use S&P's, A.M. Best, Moody's, and Fitch's
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Limitations of Group (LTD) Disability Coverage:
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Coverage depends
upon remaining a member of the group - not
portable.
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The insurance company may have the option to
cancel, modify, and/or raise your
rates without your consent.
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Group plans can generally
not be tailored to meet your individual
needs.
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The Changing Market:
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Premium guarantees
(non-cancelable plans) are threatened
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Increase in rates for physicians
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Specialty coverage for
physicians is endangered
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Benefit periods are
reduced
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Certain conditions are
limited/excluded:
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Stress, Emotional, and Mental Claims
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Soft-tissue Injuries
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Pregnancy Claims
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Foreign Travel
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How Policies are Offered:
Disability insurance can be
purchased on either an individual or group basis. Group
insurance is usually provided by your employer or
purchased individually from an association. Although
initially low in cost, group policies have several
limitations. They can be canceled (by the association,
the insurance company, or by your employer with 30 days
notice) to save money, premiums increase significantly
as you get older, and premiums are subject to annual
increases by the insurer due to claims experience of the
group. Finally, group and association plans often
contain restrictive language that is usually not found
in an individual policy and they contain less generous
provisions.
How Disability Policies are
Priced:
The cost of coverage is
influenced by your age, gender, benefit amount, benefit
period, optional riders, and your medical history.
How to Determine the Amount
of Coverage:
In general, you should maintain
enough disability insurance coverage to replace at least
60% of your gross income. If you are a sole proprietor,
use net income from Schedule C of your Federal income
Tax Return instead of your gross income. Premiums paid
with post-tax dollars will result in tax-free benefits.
Premiums paid with pre-tax dollars will result in
taxable benefits. Please refer to the Income Ratio Guide
above to determine the maximum monthly benefit amount
that you may purchase based on your income.
Summary:
Purchasing a disability policy
is one of the most important steps in the financial
planning process. For this reason, it is important to
discuss your needs with a financial consultant who
understands the subject thoroughly and who represents
more than one company (broker).
Click here to receive a
Disability Income Proposal.
If you would like to discuss
your disability insurance needs, please
contact us.
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LPL Financial
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FINRA/SIPC
Member of Securities Investor
Protection Corporation (SIPC). For an explanatory brochure,
please visit www.sipc.org |
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