About the Author
Theodore "Ted" Jenkins
I am Ted. I write, therefore I am.
Disability insurance or the Health and Accident Coverage Policy is taken to protect the policyholder in case he cannot perform his job due to various causes such as accidents or ill health. If the policyholder can prove that he/she cannot perform the majority of work that he/she used to do otherwise, he/she would be paid a percentage {45% to 65%} of the wage he/she used to get.
Doctor disability insurance is structured to provide own occupation insurance coverage to practicing doctors and dentists. The doctors have to be very careful that they get paid a percentage of their wages while recovering and they have to make sure that the policy includes residual benefits. While choosing the policy, make sure that the residual benefits are not time and duties bound but income bound. In a time and duties bound residual benefit policy, the company stops paying the doctor after a certain period of him/her getting back to work, despite the fact that his/her practice is not well established after the break due to illness or unprecedented accidents. In an income bound residual insurance policy, the doctor is paid until he/she has recovered 80% of his/her pre disability income.
Desired Features Of A Long Term Disability Insurance:
1. A guaranteed renewable and non-cancelable policy.
2. Study the definition of disability, as the more specific the policy the higher the premium.
3. Make sure residual benefits are included, i.e., the insurance company pays the holder a percentage of his income until he/she is working to the same level before the accident or the sickness.
4. Benefits of the insurance starts after 90 days of waiting period and offer 2 to 5 years benefit as well as coverage till 65 years or life.
5. Make sure that inflation protection or the Cost Of Living Adjustment (COLA) is included in the policy.
6. The Future Increase Option is a necessary feature too, whereby the insurance can be increased as the salary increases.
7. Check to see if premium waiver is included till the person is no longer disabled.
It is better to go for a Doctor Disability Insurance Policy, as it will be easier to pay the monthly bills in case of a sudden disability. It will not be that easy to get insurance after the disability. The own occupation coverage policy is popular as the policy holder can earn from other jobs still get paid by the insurance company.
After considering various policies go for the Doctor disability insurance that suits you the most, check out the terms of eligibility and the monthly payouts and make sure that all the desired features like residual benefits are included.
Published by Theodore "Ted" Jenkins on May 4, 2006 12:13 AM
