Table of Contents
- Why is Disability Insurance Important for Healthcare Professionals?
- Understanding Disability Insurance
- 2 types of Disability Insurance
- Key Terms in Disability Insurance
- Disability Insurance for Physician Assistants
- Disability Insurance for Nurse Practitioners
- Disability Insurance for Nurse Anesthetists
- 8 things to consider when choosing the right Disability Insurance
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As healthcare professionals, your careers are dedicated to helping and healing others.
But have you thought about what happens if you become unable to perform your professional duties due to an illness or an injury?
Enter disability insurance.
Why is Disability Insurance Important for Healthcare Professionals?
Healthcare professions demand a high level of skill, expertise, and physical ability. An accident or illness that impedes your ability to work can pose a significant financial risk. As high-income earners, a lot remains at stake. Disability insurance for healthcare professionals is not just a safety net - it's a financial lifesaver. Physicians are often targeted during their residency years. This proves quite different for Physician Assistants, Nurse Practitioners, and Nurses.
Let’s get into it.
Understanding Disability Insurance
2 types of Disability Insurance
Disability insurance can be classified into two main types:
- Short-term Disability Insurance: This covers temporary disabilities, providing benefits for a few months or up to a year.
- For example, coverage may kick in after 14 days and end after 90 days, providing immediate cash flow to compensate for your loss of earnings.
- Long-term Disability Insurance: This activates after the short-term coverage ends. It provides benefits until retirement age or recovery.
- For example, coverage may start after 90 days and can last for a finite period, either for 5 years or until age 67
Key Terms in Disability Insurance
Understanding disability insurance means being able to decode disability broker language.
You need to know these terms as they define when your disability policy will pay you benefits:
- Any Occupation: A term used when despite their disability, an individual can work in any profession. In this case, no disability benefits are payable.
- Own-occupation: If you're unable to perform the duties of your specific profession due to sickness or injury, you will receive your disability benefit.
- Partial Disability: With certain policies, if you’re working in a limited capacity or are earning less (often 20%) than you were before the disability, you receive a portion of your disability benefits.
- Total Disability: If you are unable to work at all due to physical or mental injury or sickness, you will receive your entire monthly benefit amount.
Disability Insurance for Physician Assistants
Physician Assistants are a crucial part of the healthcare system. They need to ensure their coverage provides sufficient benefits to cover their income.
Disability Insurance for Nurse Practitioners
Nurse Practitioners, like other medical professionals, need disability insurance to protect their income. ] Their policy should have an "own-occupation" definition of disability. This means if unable to do the job as a nurse practitioner, the practitioner can rightfully claim their disability insurance policy.
Disability Insurance for Nurse Anesthetists
Nurse Anesthetists are one of the highest-earning nursing specialties, making it imperative to protect their earnings from a sickness or injury that prevents them from working. Similar to nurse practitioners, they will benefit from the “own occupation” coverage. Disability Insurance for Registered Nurses
Registered Nurses (RNs) make up the backbone of the healthcare industry, and like others, protecting their income with disability insurance is crucial. Their coverage should be comprehensive, taking into account the physical demands of the job and the financial implications of a potential inability to work.
8 things to consider when choosing the right Disability Insurance
- Existing Coverage: Determine whether you qualify for automatic coverage by any Group Disability Plan through your employer. Remember: when the group covers your premium, the benefit amount is taxable. Definition of Disability: Look for policies that provide coverage if you are unable to perform your ‘own occupation’, not just ‘any occupation’.
- Benefit Amount: How much of your income do you want to cover?
- Benefit Period: Choose a policy that provides benefits at least up until retirement age.
- Coverage for Both Accidents and Illness: Ensure your policy covers disabilities caused by both accidents and illnesses.
- Flexibility: An individual policy provides the flexibility to change jobs without losing coverage.
- Premium: What you pay in premium costs, will be a factor of what decisions you have made in regards to the definition of disability and benefit period.
- Carrier: Make sure you trust the insurance company you’re working with as well as ensure their reputability.
Steps to filing a Disability Insurance Claim
Filing a disability insurance claim involves several steps:
- Notify Your Insurance Company: Contact your insurance company as soon as possible. Offering details of the incident to ensure the clock is ticking on the elimination period.
- Complete the Required Forms: You will need to fill out several forms, providing information about your disability and its impact on your work.
- Submit Medical Documentation: Submit all relevant medical records and an Attending Physician’s Statement.
- Wait for Evaluation: Your insurance provider will evaluate your claim and determine your benefits.
Remember, disability insurance is a significant part of your financial plan as a healthcare professional. Make sure you have the right protection in place to ensure your income, lifestyle, and future remain secure.
Written by
Georgetown. Former Wall Street. Now disability insurance expert for Physicians.
