We all have had our shared stress in paying our bills and yet we earn a paycheck, now imagine trying to balance the sheet with zero income.
Why?
Because of a disability.
Statistics indicate that physicians are 7times more likely to incur a disability throughout the course of their career than dying. And while most of us would like to think that disability is only prevalent in some risky activity or occurrence of a gruesome accident, research indicates the contrary with normal medical ailment accounting for 90% of disabilities.
To shield your family from the financial turmoil in case of a disability that may render your services redundant, opt for occupational disability insurance. In this article, we’ll explain what occupation disability insurance entails and the critical things you need to know.
What should you know about Occupation Disability Insurance?
Categorized as either Any Occupation or Own Occupation, choosing either can either ensure you enjoy the perks associated with disability insurance or curse the day you bought the policy cover.
So which should you pick and what riders you should consider before staking your funds on a policy?
- Any Occupation
With this policy cover, you’ll be able to be compensated if you are completely unable to work in any occupation. This cover is mostly provided by employers and the benefits can’t be transferred to another.
- Own Occupation
Own occupation is centered specifically on a certain job description or qualification. If you’re a surgeon and can do other tasks in the hospital, you’ll still get benefits even though you may perform other functions within your specialty but not necessarily the actual surgical work.
- Transitional Own-Occupation
This policy is detrimental to the policyholder, given that you’ll only receive benefits if, in case, you get a new occupation your earnings do not surpass what you originally earned at your previous occupation.
The only way to enjoy these benefits is if you either do not have a new occupation or your earnings in a new occupation are equal to or less than what you previously earned.
- Riders
Choosing the right riders will offer you additional benefits as a policyholder so take a keen eye to scrutinize the policies.
- Speciality-specific
Choosing the specific specialty with it broadly watered down is key in determining how much you’ll be charged. Having this rider ensures that you still get benefits even if you are able to work in another occupation.
- Partial/residual disability
This rider offers a reprieve to physicians who may be partially disabled and can’t optimally conduct their duties which may dent their income. The partial income loss will be covered during the period they are disabled.
- High guaranteed increase limit
While having insurance early on while training is cheaper the coverage is also less, but with this rider, you’ll be able to increase your policy in the future without being subjected to any health checkups.
- Non-cancelable, guaranteed renewable
This rider ensures that the insurance company does not increase the premium rates or change the contract. Without having this rider inked out the insurance company is at liberty to alter the rates.
- Purchasing time
The best time to buy an insurance policy is during your fellow and resident years taking advantage of the training program discounts. Buying at this juncture ensures that you’ll be covered when you get your first attending position or if you change employers.
Besides getting lower rates before graduation, your policy will also stack on top of whatever group coverage your eventual employer provides, making fellowship and residency the best time to buy your cover.
