Young Professional

In the unfortunate case when you can't work at all, your policy will include a provision that provides a monthly stipend until you can recuperate, until you reach the max benefit offered by the policy, or until the point when you no longer fit into the policy's definition of "total disability." This provision is called the "definition of total disability." How this provision is written can vary greatly between policies, so it's important to review them carefully - some of them may write the provision in such a way that they can stop providing the stipend if you can return to any occupation - not necessarily your specific specialty. A comprehensive policy will provide you benefits until the time you can begin performing your current specialty again – which, depending on the injury or disability, could be a long time.

Be sure to carefully review the policies you’re considering – some of them include a provision that is equivalent to an “all or nothing” style of coverage. What this means is that they won’t pay you if you’re working in a reduced capacity (whether you have evidence of it or not) and therefore suffering a loss of income. The best policies typically contain benefits that provide for you and your family in this situation, and they’re usually identified as “residual disability” or “extended partial.”

Oftentimes, this kind of scenario is identified when a physician has recuperated, but they’re working to rebuild their practice, they’re in a specialty that provides performance-based compensation, or their compensation is determined based on the number of patients seen. A disability policy that makes sense for this kind of person will typically include a “recovery benefit” that would allow you to continue to receive a stipend until your finances are back to normal.

As you review policies, look for a provision for “guaranteed increase.” This provision will allow you to increase your benefit in alignment with your increase in income, and at prescribed periods in the future. It also allows you to know that you have coverage that will continue to provide for your income and lifestyle as you gain experience. Pay close attention to the frequency of the future increase opportunities (sometimes referred to as “FIO”), and what the requirements are surrounding them.

While the rising costs of goods and services may not have an impact on the benefits of someone with a claim who is also upwards of 45 years old, younger physicians should consider adding an optional provision to protect the purchasing power of their benefits, regardless of the length of the claim.