Events of the past year have dramatically changed the insurance landscape. Many Americans after witnessing or hearing about the impacts of Covid-19 are reevaluating which benefits they really need in case of a disability caused by coronavirus.
Many broker advisors are suggesting to their clients that this is the right time to reassess if their income protection products are up to date.
Costs of disability insurance are based on various considerations, such as the insured’s age, gender, monthly income, and practice. The insurance company quotes the premium rates based on the occupational classification assigned to the medical specialty.
A broker agent advisor will suggest to you that the disability policy must cover around 60-65 percent of your after-tax income. The total coverage amount mentioned in a policy may not be the right guide to purchase the product. You must understand the tax implications of the benefits paid, so that the policy purchased by you will replace the income you might lose if disabled.
You will need a good broker advisor to make you fully understand disability insurance.
For example, some disabilities may enable you to do some work but not the type of practice you were once able to do.
Disability coverages provide payment if you become disabled, but the kind of coverage you should get must be researched on the internet or understood after speaking with an agent.
The internet has excellent resources to learn about physician disability insurance.
Typically, medical professionals choose from the following 2 basic types of disability insurance:
- Group long-term disability insurance – Usually provided by the employer or a large association of group practice.
- Individual disability insurance – Income protection insurance suitable for high-earning medical professionals.
Here are a few tips on how to choose the right broker:
The broker agent advisor must have several years of experience in selling physicians disability insurance specifically to medical professionals. They must have a good understanding of the various products available in the market and be aware of the needs of doctors. It will make sense to find a broker who has sold policies in the recent past.
A formally trained broker is an assurance that he or she has knowledge as well as commitment to the profession.
It would be better if the broker is not a dedicated agent for a particular carrier. An independent broker will offer unbiased advice whereas a captive agent will persuade you to buy a policy from his company.
You can make the process of selection smooth if you have researched your options beforehand on what kind of coverage you want. Commence by emailing your queries to the broker. Be frank about your disability concerns. You can then follow up with a phone call or an in-person appointment.