by Guest » Mon May 03, 2010 10:44 am
I'm studying medicine and came across an interesting article that highlights the importance of disability insurance. I'd just wish to know if it's true that even the doctors should find some disability insurance for themselves. Do you think the doctors are really into a risky profession?
Posted: Sat May 08, 2010 12:20 am Post Subject:
Max, I did misread your post. I apologize.
However, I still don't know a single carrier who markets individual coverage to white collar employees who limit it to 50% or the percentage whichever is less for partial.
Many will do 50% or the percentage, whichever is greater for a period of time, but none limit it they way you are describing. If you know of an exception, please let me know so that I can apologize and learn.
Posted: Sat May 08, 2010 10:28 am Post Subject:
Guys, whenever any of you are applying for the group physician disability insurance you'd better be a bit careful.
I'd advise you to go through the definition of 'disability' when it comes to group plans. I guess you'd receive any benefit under these plans only when you're completely disabled.
Posted: Sat May 08, 2010 01:57 pm Post Subject:
falruwaof . . .
We could be discussing apples and oranges, too.
An agency I used to work for a few years ago administered a group DI policy in conjunction with a non-qual deferred comp plan for one of our clients. Carrier, I believe, was Unum. The max benefit was $12,000 per month. If one of the executives was disabled (own occ), they would receive 60% of their pay up to the limit. Pretty standard. But there were several execs who earned well in excess of $20,000/month.
The policy had a provision that if the exec was able to return to work with a continuing, but temporary disability, half time or more, their benefit would be 50% of their regular benefit or 60% of the difference between their full time pay, which ever was less (prevents morale hazard). In other words, a 20% disability would not result in a 50% benefit if 20% of their full time pay meant a payment of more than $6000 per month.
If determined to be a "residual disability" (one that would permanently affect their ability to work), then the benefit was a straight 50% of the standard benefit, as compensation for a permanent disability. Contract did not revert to "any occ" definition after 2 years.
Posted: Sat May 08, 2010 06:58 pm Post Subject:
Max, we are talking apples and oranges. I was talking about individual policies. You are talking about group policies. In general, group policies stink. They are designed to be as inexpensive as possible.
Add your comment