4. Ignoring the Impacts of Financial Changes
As a physician, your income rises as you progress further in your career. The cost of living also goes up consistently, and the monthly benefit you choose now will buy even less in a few short years. That means you need to know how to get disability insurance coverage that keeps pace with the changes.
Future increase policy endorsements are an effective way to plan for wage growth and ensure your monthly benefits can meet your needs. These riders allow you to apply at specified times to increase your monthly benefits without additional medical underwriting or testing.
Most policies also offer Cost of Living Adjustment (COLA) riders that help offset the impacts of inflation. These policy endorsements are available in several different types, with options varying between carriers.
5. Focusing Only on Premium Costs
Among the leading pitfalls awaiting doctors when buying disability insurance is not buying enough. That mistake often happens because they remain laser-focused on premium costs, which multiple factors influence. It’s best to remember that the value of your coverage is the income protection and peace of mind it provides. Maximizing that value comes from creating a custom plan that balances benefits and affordability.
It’s vital to have an accurate idea of how much disability insurance coverage to get. Too little, and maintaining your lifestyle becomes challenging — especially when you factor in the costs of care for a disabling illness or injury. Too much, and you’re spending money that you could be investing elsewhere. The right amount will vary based on your current income, earnings potential and expenses. An experienced broker can help you determine what amount to apply for and how to cost-effectively customize your coverage for your needs.
6. Working With a Captive Insurance Agent
A captive insurance agent works specifically for one insurance company, typically for a combination of salary, benefits and sales commissions. They may be actual carrier employees or independent contractors for the company. As a result of this exclusive relationship, the agent will only present coverage options for that single company. They may even show you options from one or two other carriers but discuss why their company is the best for you. These policies may meet your needs, yet no single carrier has the best solution for every doctor.
That’s where an independent agent can help. These professionals work with a trusted network of insurance companies, giving you access to the market’s leading insurers and coverage. They’ll assist you with determining how much disability insurance you need as a physician and comparing the different discounts, benefits and riders. Since the agent isn’t tied to a single company, you also benefit from objective advice.
Get Unbiased Disability Insurance Advice From DrDisabilityQuotes.com
DrDiabilityQuotes.com is a truly independent insurance partner working with the industry’s most well-known companies. We specialize in helping medical professionals find and buy the right coverage for their needs. Our team gathers the quotes on your behalf, saving you the time of contacting each insurer independently. Once we have the numbers, we will thoroughly review your options with you so you can make the most informed decision possible.
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