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Disability Insurance 

Protecting Your Income

If you were unable to practice Dentistry due to an accident or illness, your income would probably stop.  If you are in a group practice, your income may continue if you have an agreement defining your income payout.

Otherwise, you will need to invade savings to pay for rent, mortgage, food etc.

Disability Income Insurance will protect your income in the event of a covered disability

What Features Should I Look For?

These are five sound ways to judge the quality of a disability policy

  1. Renewability Provisions: These are the terms under which you can maintain your coverage.

  2. Definition of Total Disability: In the best policies, "total disability" will mean that because of sickness or injury you are unable to work at your regular occupation.

  3. Residual Disability Benefits: This provision will define the benefits you may receive if you are able to work, but your earnings are reduced as a result of disability.

  4. Other Policy Benefits: The best policies contain additional provisions designed to protect your interests.

  5. Optional Benefits: You may choose among these benefits to enhance your coverage, allowing you to tailor your coverage to suit your specific situation.

Renewability Provision

The renewability provision is one of the key features of any individual disability income policy. The reason? This provision defines your rights when it comes to keeping your disability income protection in force.

In general, a disability contract may be guaranteed renewable only or both non-cancellable and guaranteed renewable.

If a policy is guaranteed renewable only, the insurance company agrees to keep renewing the contract for as long as premiums continue to be paidon a timely basis. While the insurer cannot change the provisions of the policy, it can increase premiums by state, occupation class, policy form or other categories with prior notification.

When the term "non-cancellable" is added to guaranteed renewable, the insurance company cannot change any policy provisions and it cannot increase the premiums. As long as premiums are paid on a timely basis-and assuming that all underwriting information is truthful and accurate-the insurer cannot cancel the contract.

A non-cancellable, guaranteed renewable policy provides the greatest degree of protection; and therefore, is the best for you to own. ProVider Plus is both non -cancellable and guaranteed renewable.*
 

Definition of Disability

Own Occupation Definition. This definition can vary among insurance companies. The best definition is because of sickness or injury you are not able to perform the "material and substantial duties"* of your occupation.

Your occupation means the regular occupation (or occupations, if you have more than one) in which you are engaged at the time you become disabled. The policy should also say "You will be totally disabled, even if you are at work in some other capacity, so long as you are not able to work in your occupation:

Dental specialists should have "specialty language” which takes the own-occupation concept a step further to protect professional specialties: If your occupation is limited to a single Dental specialty recognized by the American Dental Association, that should be considered the specialty to be your occupation.
 

Residual Disability

Disability isn't always "total." You may suffer a partial (or residual) disability that limits your ability to work and results in decreased income-or an initial total disability may be followed by an extended period of residual disability.
 

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Other Policy Benefits

 

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Interrupted Elimination Period

 

 

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Waiver of Premium

 

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Waiver of Elimination Period

 

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Presumptive Total Disability Benefit

 

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Capital Sum Benefit

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Optional Policy Benefits

 

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Graded Lifetime Extension Benefit Premium

 

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Cost of Living Adjustment Rider

 

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COLA Increases Remain upon Recovery

 

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Future Increase Option Rider

 

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Future Increase Option Rider (CA and FL only)

 

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Automatic Increase Rider

 

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Social Insurance Substitute Rider (Offset)

 

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Group Disability Insurance Replacement Rider

 

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Unemployment Premium Waiver Option Rider

 

 

Tax Considerations

Premium payments are NOT tax-deductible in most cases.

Benefits received are NOT subject to income tax.

Therefore that coverage limits that may be offered will be designed to replace after tax income.

The tax treatment for employer paid plans is different, please contact us for further information.
 

This is intended to provide general information. For a complete description of coverage including policy provisions, limitations and exclusions, please consult the actual insurance policy.
Copyright Bryan Lau 2007 - 2013