Disability insurance for Veterinarians-
What is disability insurance? Why is it important? What should I be looking for as a veterinarian? What do all of these words and numbers mean on my quote? If you find yourself asking some of these questions this blog post is for you! Disability insurance for veterinarians doesn’t need to be confusing!!!
Disability insurance is income protection- It provides you a monthly benefit for each month you are too sick or too hurt to work. A disability policy will consist of a few different pieces and parts. Let’s talk about a few of these different aspects of a policy and some key terms.
The definition of disability- These are the guidelines used by the insurance company to determine if you’re disabled and eligible to receive benefits.
Elimination period (waiting period)- The number of days you have to wait before receiving monthly benefits. You may have a choice of 30, 60, 90, 180, 365 days on your policy.
Benefit period- This is how long you will receive money from your disability insurance policy. You may have options of 2 years, 5 years, to the Age of 65 or to the Age of 70.
Benefit payment- The money you receive each month, “like a paycheck” to help replace your lost income while you are unable to work. Typically a disability insurance plan for veterinarians will cover about 60% of your annual income.
Premium- It’s what you pay each month for the coverage while you are healthy and working
Rider- A feature you can add to your policy to enhance benefits.
Some common riders you may see offered are:
Residual disability benefit- If you are residually disabled and have a reduction of earnings you will receive a disability payment that is proportionate to your loss of earnings
Regular occupation- If you are totally disabled in your currently occupation and choose to work in another occupation you receive full benefit payments (regardless of the income earned from the other occupation)
Cost-of-Living Adjustment (COLA)- while disabled and receiving benefits your payments are adjusted to keep up with inflation
Underwriting- Guidelines the insurance company follows to see if you qualify for income protection, how much you can buy and what it will cost
Claim- This is the process of communicating your disability with the insurance company
The next thing you may want to consider after you understand the terms are what are the questions I should be asking when looking at a policy. Here are some questions you can use to evaluate any disability insurance policy-
1. Can the insurance company cancel my policy?
2.Can the insurance company increase my premium?
3. Can the insurance company modify my policy after I purchase it?
4. Does the policy provide protection in my own occupation?
5. How long is my waiting period?
6. How long is my benefit period?
7. If I’m able to return to work on a part time basis, will the policy continue to provide me with partial benefits?
8. Can I increase my benefits in the future without medical underwriting?
Disability insurance for veterinarians is something that needs to be on your radar- Your income is one of your most important assets. After all, you rely on it every!
The blog post is for informational purposes only. This post offers general information that is NOT a substitute for professional advice regarding your insurance situation. Disability insurance has limitations and exclusions. Some features, provisions and riders may not be available in all states or with all occupation classes. This blog post was created and is owned by Total Planning Veterinary Services. Do not copy or use this post unless you have the written consent of Total Planning Veterinary Services.