The Best Companies For Own-Occupation Physician Disability Insurance
Expert reviewed by: If you’re a physician, you know that your earning potential is tied to your ability to practice medicine. If you become disabled and can’t work in your own occupation, you stand to lose a significant amount of income. Own-occupation physician disability insurance provides you with financial protection if you’re unable to work due to a disability.
Let’s discuss the benefits of own-occupation disability insurance for physicians, what to look for in a policy, and the best companies to buy this type of policy from.
How Does Own-Occupation Physician Disability Insurance Differ from other Disability Policies?
As a physician, your ability to earn a living is directly tied to your ability to practice medicine. If you were to become disabled and unable to work in your chosen specialty, those years of hard work and study would vanish. Fortunately, own-occupation physician disability insurance can provide you with financial protection for the specialty you’ve chosen.
Unlike other disability insurance policies that only provide coverage if you are unable to work in any occupation for which you are qualified, own-occupation disability insurance is designed specifically for physicians and other highly specialized professionals. This means that it provides coverage even if you are able to work in another occupation, as long as you are unable to perform the duties of your own occupation.
Given the physically and mentally demanding nature of healthcare, having own-occupation disability insurance gives you peace of mind knowing that you and your family will be financially secure if you are unable to practice medicine because of a disability.
Why do Physicians Need Own-Occupation Disability Insurance?
Physicians face a higher risk of disability than many other professions due to the demanding nature of their work. Even a minor injury or illness could prevent a physician from performing their specific duties, which could have significant financial consequences.
Unlike traditional disability insurance, which only provides benefits if you are unable to work in any occupation, own-occupation disability insurance provides benefits even if you are able to work in another occupation, as long as you cannot perform the duties of your own occupation. This ensures that physicians are financially protected if they are unable to practice medicine due to a disability.
In addition to providing financial protection, own-occupation disability insurance also offers several other benefits for physicians. It can help them maintain their standard of living and pay for medical expenses, which are often high for physicians. It can also provide peace of mind, knowing that they have a financial safety net in place if they become disabled.
If you are a physician, it is essential to consider purchasing own-occupation disability insurance. It is a valuable investment that can protect your financial future and ensure that you are able to continue providing for yourself and your family in the event of a disability.
When shopping for own-occupation disability insurance, it is important to compare different policies and choose the one that best meets your individual needs. Some factors to consider include the benefit amount, the definition of disability, the waiting period, and the premium cost. It is also advisable to work with an insurance agent who specializes in disability insurance for physicians.
What to Look for in an Own-Occupation Disability Insurance Policy
When choosing an own-occupation disability insurance policy, there are several key factors to consider to ensure that you have the right coverage in place.
Definition of disability:
The definition of disability is the most important factor to consider when choosing an own-occupation disability insurance policy. The definition of disability should be clear and specific, and it should state that you are considered disabled if you are unable to perform the material and substantial duties of your own occupation. Some policies may also include a “total disability” definition, which requires you to be unable to work in any occupation for which you are reasonably qualified.
Length of coverage:
The length of coverage is another important factor to consider. Most own-occupation disability insurance policies offer coverage until you reach a certain age, such as 65 or 70. However, some policies may offer coverage for a shorter or longer period of time. You should choose a policy that provides coverage for the period of time that you need it.
Benefit amount:
The benefit amount is the amount of money that you will receive each month if you become disabled. The benefit amount should be enough to cover your living expenses and other financial obligations. You should consider your current income, your expected future income, and your family’s needs when choosing a benefit amount.
Premium:
The premium is the amount of money that you pay for your own-occupation disability insurance policy. Premiums can vary depending on your age, your health, your occupation, and the amount of coverage that you choose. You should compare premiums from multiple insurance companies before choosing a policy.
Insurance company:
The insurance company that you choose is an important factor to consider. You should choose an insurance company that is financially stable and has a good reputation for customer service. You should also make sure that the insurance company is licensed to do business in your state.
Who Offers Disability Insurance for Physicians?
Ameritas
Ameritas Life is as reputable as any name in the insurance industry. However, it’s actually a newcomer to the disability insurance space in comparison to its competitors. DInamic Foundation is its best disability insurance product for doctors. Policies are underwritten and issued by Union Central Life, its wholly-owned subsidiary.
Ameritas features a true own-occupation definition of disability. This provision benefits you if an accident or illness prevents you from practicing your specialty.
DInamic Foundation requires you to choose between non-cancelable coverage and guaranteed renewal. The maximum benefit period available is to age 70. Ameritas offers basic and enhanced residual disability riders. It also offers two different COLA riders.
-
Pros
- True own-occupation provision.
- Lowest premium amount.
- Two COLA rider and residual disability options.
- Various add-ons such a good health benefit, presumptive total disability benefit, COBRA premium benefit, partial disability benefit, and non-disabling injury benefit.
-
Cons
- Slower customer service.
- Lowest maximum policy benefit: $20,000 per month.
- Must choose between non-cancelable coverage and guaranteed renewal.
- For certain occupation classes, the own-occupation provision is only available for five years.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Guardian
As one of the largest, most trusted mutual insurance companies in America, Guardian Life is the Cadillac of its industry. Its disability insurance product, ProVider Choice, is a great fit for doctors. Policies are underwritten and issued by Berkshire Life, a wholly-owned stock subsidiary.
According to Guardian, total disability occurs when injury or illness prevents you from performing your occupation. For doctors, more than half of your income must come from hands-on patient care or surgical procedures to qualify.
Guardian’s true own-occupation definition of disability guarantees full benefits. It still applies if you’re able to maintain gainful employment in another occupation. In fact, you may be able to benefit if you can still practice your specialty with major limitations.
Coverage is non-cancelable and guaranteed renewable to age 70. You may elect 10-year, five-year and two-year benefit periods. Guardian offers 30-day, 60-day, 90-day, 180-day, 360-day and 720-day elimination periods.
Unlike other providers, Guardian features three cost-of-living adjustment (COLA) rider options. As for residual disability, Guardian offers both basic and enhanced partial riders.
-
Pros
- True own-occupation provision.
- Highest COMDEX score: 99.
- Highest maximum policy benefit: $20,000 per month.
- Simplified underwriting for up to $7,500.
- Various options for benefit and elimination periods.
- Various options for COLA and residual disability riders.
- Various add-ons such as an automatic benefit enhancement, benefit purchase option, catastrophic disability rider, hospice care benefit, serious illness supplemental benefit and student loan protection.
-
Cons
- Highest premium amount.
- No presumptive total disability benefit.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
MassMutual
MassMutual has been a mainstay in the insurance game since 1851. MassMutual offers two disability insurance products, Radius and Radius Choice. Both feature provisions and add-ons that allow you to customize your coverage to meet specific needs. MassMutual helps you protect your income and retirement without relinquishing payment control.
MassMutual features a true own-occupation definition of disability. However, the provision is not part of your base policy. You must purchase it as an additional rider. With this provision in place, ‘total disability’ occurs when you cannot perform the main duties of your occupation. This requires you to be under a physician’s care.
Both Radius and Radius Choice are non-cancelable and guaranteed renewable to age 65. Radius is conditionally renewable for life, while Radius Choice is only until age 74. Both policies have benefit periods available to ages 65 and 67, as well as two years, five years and 10 years. Radius Choice also offers a maximum benefit period to age 70. Both policies offer elimination periods of 60 days, 90 days, 180 days, one year and two years.
MassMutual offers one cost-of-living adjustment (COLA) rider. After your first year of disability, your monthly benefit increases by a set percentage each year. MassMutual offers one option with basic criteria that increases your chance of qualifying.
-
Pros
- True own-occupation provision.
- Various add-ons such as an automatic benefit enhancement, catastrophic disability rider, future increase option, presumptive total disability benefit and student loan protection.
-
Cons
- Own-occupation provision sold separately.
- Only one COLA rider and residual disability rider option.
- No benefit purchase option, hospice care benefit or serious illness supplemental benefit.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Principal
Principal Life is among the most competitive providers in the disability insurance market. HH750 is an excellent option for doctors seeking a top-shelf disability insurance product. It features a wide variety of options that afford you maximum flexibility.
Principal Life is among the most competitive providers in the disability insurance market. HH750 is an excellent option for doctors seeking a top-shelf disability insurance product. It features a wide variety of options that afford you maximum flexibility.
Principal offers both a true own-occupation and a modified own-occupation provision. A true own-occupation provision is the best bet for highly-skilled individuals like doctors. You benefit if you become unable to perform the material and substantial duties of your specialty. It still applies if you can maintain gainful employment in a different occupation.
Modified own-occupation is a watered-down version of the former. Frankly, it’s only feasible if you’re cost is a concern. The definition of disability is the same, but you will not benefit if you can fulfill another occupation. Either way, both provisions are available as part of your base policy. You do not have to purchase an additional rider.
HH750 is non-cancelable and guaranteed renewable to age 65. Benefit periods are available to ages 65, 67 and 70, and for two years and five years. Principal features 30-day, 60-day, 90-day, 180-day and one year elimination periods.
Principal offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases on a compound basis. Principal also offers one partial residual disability rider.
Modified own-occupation is a watered-down version of the former. Frankly, it’s only feasible if you’re cost is a concern. The definition of disability is the same, but you will not benefit if you can fulfill another occupation. Either way, both provisions are available as part of your base policy. You do not have to purchase an additional rider.
HH750 is non-cancelable and guaranteed renewable to age 65. Benefit periods are available to ages 65, 67 and 70, and for two years and five years. Principal features 30-day, 60-day, 90-day, 180-day and one year elimination periods.
Principal offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases on a compound basis. Principal also offers one partial residual disability rider.
-
Pros
- True and modified own-occupation provisions.
- Advisor’s Choice Award for advisor support.
- Available to those who only work 20 hours a week.
- Simplified underwriting for up to $6,000 per month.
- Various add-ons such as a benefit update rider, catastrophic disability rider, future benefit increase rider, presumptive total disability benefit, and serious illness benefit.
-
Cons
- The modified own-occupation provision can be misleading. It can save you money now, but you will not receive as strong of benefits as true own-occupation.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The Standard
The Standard is among the largest, most trusted providers in the disability insurance space. The company has several options, but Platinum Advantage is the most beneficial for doctors. It features built-in provisions and additional riders that maximize income protection.
The Standard’s true own-occupation definition of disability is available as an additional rider. With this provision in place, ‘total disability’ occurs when you are unable to perform the substantial and material duties of your specialty. You must also be under the care of a physician to qualify.
Platinum Advantage is guaranteed renewable to age 67. To make your policy non-cancelable, you must purchase an additional rider. Benefit periods are available to ages 65 and 67, as well as two years, five years and 10 years. Elimination periods of 60 days, 90 days, 180 days and one year are available.
The Standard offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases annually on a compound basis according to the Consumer Price Index. The Standard offers a basic residual disability rider.
-
Pros
- True own-occupation provision.
- Wide variety of options and strong coverage guarantee.
- No-cost riders and benefits, such as the family care benefit.
- Various add-ons such as an automatic increase benefit rider, benefit increase rider, catastrophic disability rider, family care benefit, premium waiver benefit, presumptive total disability benefit, student loan rider and survivor benefit.
-
Cons
- Own-occupation and non-cancelable riders sold separately.
- Only one COLA rider and residual disability rider option.
- Lowest COMDEX score: 79.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The Best Own-Occupation Disability Insurance Companies
The best disability insurance companies are those that are financially stable, have a good reputation, offer a variety of policies with different features and benefits, have a good claims-paying record, and are easy to work with. However, there are only 6 companies that offer true own-occupation disability insurance for physicians:
Guardian: Guardian offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 60% of your pre-disability income. Guardian Life is also known for its innovative product offerings and its commitment to customer satisfaction.
MassMutual: MassMutual offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 66 2/3% of your pre-disability income. MassMutual is also known for its strong financial stability and its excellent customer service.
Ameritas: Ameritas offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 60% of your pre-disability income. Ameritas is also known for its affordable premiums and its commitment to providing quality customer service.
Principal: Principal Financial Group offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 60% of your pre-disability income. Principal Financial Group is also known for its strong financial stability and its commitment to providing innovative products and services.
The Standard: The Standard Insurance Company offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 60% of your pre-disability income. The Standard is well-regarded for its extensive range of policy options and its dedication to customer satisfaction. They are also known for their flexible policy features and strong commitment to providing reliable and supportive services to their clients.
The Mutual of Omaha: This company offers a variety of own-occupation disability insurance plans, including plans that provide benefits for up to 65% of your pre-disability income. Mutual of Omaha is also known for its excellent customer service and its strong financial stability.
How to Apply for Own-Occupation Disability Insurance
Compare quotes from multiple insurance companies: Obtain quotes from several insurance companies to compare coverage options and premiums.
Work with an insurance agent who specializes in disability insurance for physicians: Partner with an experienced insurance broker who understands the unique needs of physicians and can guide you through the application process. They can quote multiple companies, show you all of your options, assist you in selecting the right policy, and ensure accurate completion of the application.
Provide detailed information about your income, medical history, and occupation: Accurately provide information about your income, medical history, and occupation. Disclose any pre-existing medical conditions or disabilities, as they may impact your coverage and premium. Be honest and transparent in your responses to ensure a smooth application process.
Be honest and accurate when answering questions on the insurance application: Provide accurate and honest information on the insurance application. Misrepresentation or omission of material facts can lead to policy denial or cancellation. Disclose any relevant medical information that may affect your eligibility for coverage.
Make sure you understand the terms and conditions of the policy before you sign it: Carefully review the policy terms and conditions before signing the contract. Understand the coverage details, including the definition of disability, benefit amount, premium, waiting period, and exclusions. Ask questions and seek clarification from your insurance expert if there are any unclear terms or provisions.
Key Takeaways
Own-occupation physician disability insurance is an essential safeguard for physicians, providing a unique form of income protection that is specifically designed to accommodate the risks and demands of the medical profession. This insurance differs from standard disability policies by offering coverage even if a physician is able to work in a different field, yet cannot practice in their own specialty due to disability.
When selecting a policy, physicians should focus on key aspects such as the specific definition of disability, the length and amount of coverage, and the cost of premiums, while ensuring they choose from reputable companies. Working with an unbiased insurance expert, like the ones at LeverageRx, can greatly streamline this process. Request your free quotes today to get started.
Authors
Expert reviewer
