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Can You Have Two Physician Disability Insurance Policies?

There are situations where you can get better and more affordable disability insurance coverage by having two policies. This arrangement is called a combination plan, or stacking.

Having Two Disability Insurance Policies Increases Your Maximum Benefit

When you buy physician disability insurance, the insurance company will detail the maximum benefit to be paid per month should an unexpected life event occur. However, the maximum benefits issued to physicians may not come close to what you are making on a monthly basis. For example, let's say you make $30,000 a month but the insurance policy allows a maximum benefit of only $15,000 a month. This wouldn't exactly work for you, would it?

That's where buying two disability insurance policies come in. If you read your policy very closely, you'll see a small provision regarding the allowance of owning more than one policy and collecting multiple "maximum benefits" from other insurance companies. For example, if you own a policy from The Standard and an individual policy from other carrier, The Standard will allow you a total maximum monthly benefit of $30,000 from all policies owned. If your second policy is with Principal and they have a maximum benefit of $15,000, The Standard will still pay you $15,000 a month. So when you talk to your insurance broker, be sure and ask about the maximum benefit provision in relation to other policies. Ohio National allows a maximum of $30,000 total monthly benefits and Principal allows a $35,000 maximum monthly benefit. That said, it could get complicated if your second policy is a group disability insurance policy for physicians so be sure and understand the nuance.

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Stacking Policies to Enhance Existing Policies

Besides increasing your maximum benefit, another reason to have two policies is to supplement your existing one. For example, let's say you purchased disability insurance as a resident and the policy has a monthly benefit of $5,000. When you make more money 10 years down the line, that original policy you purchased would not be appropriate. This is when you should call your insurance agent and decide together if you should cancel the original policy and buy a new one, or simply buy a second one with a larger maximum benefit. Making this decision will require a phone call, maybe even a few. There are insurance agents that dupe doctors into making bad decisions so triple check your agent is high quality and reputable.

One thing to keep in mind when stacking disability insurance policies is that the cost of your annual premium is bound to rise. The cost of disability insurance is based on your current salary, among other factors. When you purchased your first policy as a resident, you were likely only making a fraction of what you are making today, 10 years later.

Curious how much a second disability insurance policy will cost? Click here to schedule a free call today!

Two Disability Insurance Policies Buys You the Best Features & Riders

The ideal disability insurance policy may not exist for your situation or needs. However, you can build something close the perfect coverage when you combine two or more policies. For example, let's say one policy has a great residual disability rider while another policy has the better future increase option. When you purchase both policies, you are getting the best of both worlds. Disability insurance carriers have a range of features and riders so buying "the best of both world" can apply to a policy's catastrophic benefit or COLA rider or even their student loan rider.

For example, let's say you want a policy with a 90-day elimination period and guaranteed benefits until the age of 65. The only problem is that option is too pricey. So, you could save money by stacking policies. You could buy a second policy and choose the 90-day elimination period with only a 5-year benefit period. What that means is if you were to become disabled, the insurance company would pay you benefits for only 5 years, no matter what. You could then go back to the first policy, choose a benefit period to age 65 but opt for the longest elimination period offered. This will lower the cost of that policy and you’ll have the second policy to provide benefits until the elimination period on the first policy kicks in.

Should I Buy Two Disability Insurance Policies?

If stacking policies seem complicated and confusing, just remember there are only 6 major disability carriers for physicians. Talk to your insurance agent and they will show you how to compare physician disability insurance policies. The main idea of combining policies is to get the most comprehensive coverage for the lowest price. If you look into stacking and find that you would pay more for the same benefits, then it is not worth it. Stacking policies is a common strategy used by doctors. If your agent proposes a stacking strategy, ask for comparisons on the costs and benefits of a single policy to ensure you’re getting the best deal.

Who Offers Disability Insurance
for Physicians?

Compare rates, features, and more from the best disability insurance policies of 2022.
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CompanyA.M. Best RatingDefinition
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States AvailableAK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
About

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.

Read our full review of Ameritas's disability insurance policy.

States AvailableAK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
About

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.

Read our full review on Guardian's disability insurance policy.

States AvailableAK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
About

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.

Read our full review on MassMutual's disability insurance policy.

States AvailableAK, AL, AR, AZ, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NE, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WI, WV, WY
About

Ohio National’s disability insurance product is relatively new to the market. Still, it's among the best money can buy. ContinuON Income Solutions II allows you to customize your coverage without losing control of premium expenses.

Ohio National offers its true own-occupation provision as a rider. Regardless of occupation class, it does not come with your base policy. With Ohio National, total disability occurs when you're unable to perform the material and substantial duties of your specialty. To qualify, you must be under the care of a physician.

ContinuON Income Solutions II is guaranteed renewable on an annual basis. Coverage is non-cancelable as long as you consistently pay on time. Benefits periods include age 65, 67 and 70. Two-year, five-year and 10-year benefit periods are also available. Ohio National offers 60-day, 90-day, 180-day and one-year elimination periods.

Ohio National offers both a 3% and a 6% COLA rider. Policyholders may elect the basic or enhanced residual disability rider.

Pros

  • True own-occupation provision.
  • Excellent customer service.
  • Various add-ons such as a hospice benefit, survivor benefit and recurrent disability benefit.

Cons

  • Lowest physical and labs limit means simplified underwriting is only allowed for up to $3,000 per month.

Read our full review on Ohio National's disability insurance policy.

States AvailableAK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
About

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.

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.

Read our full review of Principal's disability insurance policy.

States AvailableAK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KT, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
About

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.

Read our full review on The Standard's disability insurance policy.

Colin Nabity - CEO & Co-founder

Colin is a former investment banker turned entrepreneur and the founder of LeverageRx. He has well over a decade of experience in the financial services industry and has written for Thrive Global, Chime, Breeze (another business Colin founded) and SmallBizClub.com. Colin was named Midlands Business Journal’s 2019 Entrepreneur of the Year and his work has been featured in Forbes, Council for Disability Awareness, Medical Economics, Dental Products Report, HCP Live, and more.

Disability InsurancePublished July 17, 2019
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