Disability Insurance for Pediatricians

Disability has become the fastest route to poverty in the U.S. The effect of disability on your finances can be devastating if you don’t plan ahead with a disability insurance policy. With Census Bureau Reports showing that 1 in 5 Americans are living with disabilities, and with around 21% of disabled people living in poverty, most people can no longer afford to make buying disability insurance as an afterthought.

A disability insurance policy is a personal finance plan that protects your income if you become disabled. It provides you with coverage benefits for your treatment and general wellbeing.

As a pediatrician, you need an affordable, portable, and flexible disability insurance policy that can be tailored to cater for your personal and family needs in the event of disability.

Disability Insurance for Pediatricians

Why Do Pediatricians Need Disability Insurance?

It Protects Your Income

You have spent several years and hundreds of thousands of dollars on medical school to become a pediatrician. This is a huge investment that must be protected. If you become disabled, disability insurance coverage helps protect your income by continually paying you a certain percentage of your income for a specific period.

The Possibility of Disability is Rising

Many medical professionals usually underestimate their chances of becoming disabled during their career. However, according to Medscape, the actual odds of becoming disabled either for a long or short period are about 25%. Because of this possibility, it is always better to prepare when you are still healthy and financially buoyant.

It Has No Substitutes

While there are other financial plans like emergency funds, personal savings, and health insurance, none of them can replace a disability insurance policy. An average plan will cover you and your family for several months—sometimes, for years or decades. Even if you have an emergency fund or personal savings, it may not be enough to last you and your family beyond a few weeks if you become disabled and lose your income.

It Helps You Meet Your Debt Obligations

According to a survey conducted by the International Journal of Health Services, 57% of respondent in the poll ascribed their home foreclosure to medical debt or another medical cause. The Mortgage Bankers Association also corroborated that by revealing that disability is among the top primary drivers of delinquencies and foreclosure in the country.

In addition to that, student loans have become the second highest consumer debt after mortgages. According to Forbes, 44 million U.S. students collectively owe a total of $1.5 trillion in student loans in 2019. These two important financial obligations usually put pediatricians in a difficult situation if they become disabled and can’t continue their payments. A disability insurance policy could be tailored to help you through the unexpected.

What Kind of Disability Insurance Policies are Available to Pediatricians?

There are two major types of disability insurance for pediatricians. They are short-term and long-term disability coverage. Any of these two types can be bought as an individually-purchased policy or group policy.

However, disability insurance coverage usually comes with add-ons called riders. Disability insurance riders allow you to customize your policy to suit both your personal and professional needs as a pediatrician.

The following are some of the riders that can be crucial for pediatricians:

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Own Occupation

With this rider, you will be entitled to disability benefits if you can no longer work as a pediatrician and have to settle for either another specialty in the medical field in another profession entirely. As long as you leave your pediatric practice because of a disability condition, you will continue to get your disability coverage for the period agreed in your contract.

Cost of Living Adjustment

The essence of the cost of living adjustment rider is to you get an increased coverage benefit payment if there is inflation. As the Consumer Price Index increases, so do your disability insurance benefits. This rider is especially important for pediatricians to ensure that the benefit payments received can meet your needs.

Student Loan

The student loan rider is to help pediatricians who are still paying their medical school loans. If you become disabled while still having medical school debt, this rider might be your only safety net in such circumstances.

Future Purchase Guarantee

This is especially important for pediatricians who are just starting out in their career. At this stage, your income can limit the type of policy you can get. However, with this rider, you get to increase the coverage in your contract later at the peak of your career without another medically underwritten policy.

What Should Pediatricians Look for When Buying Disability Insurance Policy?

The policy’s definition of disability

Each disability insurance policy has its own definition of ‘disability’ which will be used to determine if a policyholder’s disability condition is qualified for benefit payment.

The Possibility of Disability is Rising

Many medical professionals usually underestimate their chances of becoming disabled during their career. However, according to Medscape, the actual odds of becoming disabled either for a long or short period are about 25%. Because of this possibility, it is always better to prepare when you are still healthy and financially buoyant.

The credibility of the insurer

The history and reputation of an insurance company are very important. You need to ensure you buy your disability insurance plan from a reputable company.

Premium rate

This is the amount of money you are to pay for the disability insurance policy. Some of the factors that determine your premium rate include your age, medical history, and benefit period.

Benefit period

The benefit period is the length of time you are entitled to coverage by the policy. The benefit period is usually determined by the premium rate and other conditions in the policy. On the average, short-term disability insurance provides coverage for nine to fifty-two weeks while a long-term policy can be for several months, years and also until retirement age.

An insurance broker

To get the best quality for your money, you should work with a trusted and seasoned insurance broker who will advise you on the best policy for pediatricians and where and how you can get it.

How Gold Coast Life Insurance Can Help

We work with professionals in all medical specialties to help them get the best policy for their money. We will access your disability needs and get you a customized policy suitable for your personal lifestyle, pre-existing conditions (if any) and risks associated with your specialty as a pediatrician.  Becoming our member doesn’t require any medical examination. In addition, whether you are a high-risk applicant or you have pre-existing conditions, our inclusive services cover you. Get a free quote now for the best disability insurance policy for pediatricians.

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