Disability Insurance for Oncologists
As an oncologist, you have worked and studied hard for many years. You are now in a position to reap the rewards of those efforts with a job that will pay you handsomely for your efforts. You do not want anything- especially a disability- to interrupt your earnings stream. The most important part of a disability insurance contract is the definition of total disability. The definition of total disability is how the insurance company decides what qualifies as a total disability. For a medical doctor specializing in Oncology, this definition is paramount.
As an oncologist you need to obtain an individual disability insurance (IDI) policy with a true own occupation definition of total disability for the life of the contract, and if possible, you may want to consider a policy with an extended benefit. The advantage of this definition to an Oncologist is if they are able to work in another field that they can do so and still be considered totally disabled under the policy. A definition of total disability that contains medical specialty language is the most comprehensive choice for physicians in the oncology field. It states that if you have limited your occupation to the performance of the material and substantial duties of a single medical specialty, that specialty will be considered your occupation.
Another important feature of a strong IDI policy is the residual disability benefit rider.
Since a disability is not always total in nature or you may suffer a total disability and return to work but not at your pre-disability earnings, it is imperative that you consider purchasing a policy that also provides for benefits in the event of a residual or partial disability. In situations where the insured is residually or partially disabled, the insured could be eligible for a percentage of their benefit based on their loss of income.
Some carriers' residual or partial riders require at least a 20% loss of income requirement as well as a loss of time or duties requirement. In these situations, once these requirements are satisfied, the disability insurance policy should pay the insured a percentage of their benefit based on their loss of income. For example, if an Oncologist was only able to practice 40% of the time due to a disability, and therefore was only billing for 40% of the procedures that they had before the disability, they would most likely have a loss of income. If we assume that the loss is solely due to injury and sickness and is 60% of his/her prior income, they could receive a monthly benefit equivalent to 60% of the monthly benefit. Most carriers pay a minimum benefit of 50% during the first six months of a partial disability. After the first six months of residual benefits, most policies pay benefits strictly proportionate to the income loss for the particular month in which you claim a residual benefit.
ProVider Plus' Residual Disability Benefit Rider is designed a little differently than most other disability insurance companies. First, there is no requirement that the insured have a loss of time or duties in order to receive a residual benefit. ProVider Plus' Residual Disability Benefit Rider considers you residually disabled when, due to injury or sickness, you suffer a loss of income of 15% or more of your prior income. This rider also has a recovery provision built into it to help assist with your financial recovery following a disability. Even if you have recovered from the injury or sickness that caused your residual disability, you would continue to be considered Residually Disabled so long as, solely because of injury or sickness, you have a loss of income of at least 15%. For the first 12 months that residual disability benefits are payable, with the ProVider Plus Residual Disability Benefit Rider*, your lost income will be replaced dollar-for-dollar, up to the policy's monthly benefit. After the first 12 months of residual disability, benefits are paid in proportion to your income loss. If the loss of income is 75% or more, it's considered to be 100%.
For an Oncologist, the Residual Disability Benefit Rider can be a significant benefit. If a disability took this physician out of work for a year or two, it is likely that they would have a period of time upon their return to work, where their income was much lower than before they were disabled. With the Residual Disability Benefit Rider available with the ProViderPlus contract, an Oncologist who returns to work full time and still suffers a loss of income of at least 15% solely due to injury or sickness, will continue to be considered residually disabled, and therefore eligible to receive a monthly benefit.
True own-occupation coverage and residual disability benefits are two key factors that the ProVider Plus offers to oncologists- There are other features and riders to consider- such as presumptive total disability-benefit, the Future Increase Option Rider**, the Cost-of-Living Adjustment Riders*** and more. It is important to understand all features of the policy that you settle on, because you need it to be there for you if and when you suffer a disability.
* The Loss of Income Indemnity payable under the Residual Disability Benefit Rider will be reduced by benefits payable under disability insurance policies that were in force before this rider is issued should the sum of all disability benefits exceed actual lost income. Optional riders are available for additional premium.
** Optional riders are available for additional premium.
***This benefit is not necessarily protection against increases in the cost of living.
Optional riders are available for additional premium
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 1355 Piccard Drive #380 Rockville, Maryland 20850. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (240) 683-9700. James Fegan, Financial Representative. The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian.
Financial Balance Group is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.
As an oncologist you need to obtain an individual disability insurance (IDI) policy with a true own occupation definition of total disability for the life of the contract, and if possible, you may want to consider a policy with an extended benefit. The advantage of this definition to an Oncologist is if they are able to work in another field that they can do so and still be considered totally disabled under the policy. A definition of total disability that contains medical specialty language is the most comprehensive choice for physicians in the oncology field. It states that if you have limited your occupation to the performance of the material and substantial duties of a single medical specialty, that specialty will be considered your occupation.
Another important feature of a strong IDI policy is the residual disability benefit rider.
Since a disability is not always total in nature or you may suffer a total disability and return to work but not at your pre-disability earnings, it is imperative that you consider purchasing a policy that also provides for benefits in the event of a residual or partial disability. In situations where the insured is residually or partially disabled, the insured could be eligible for a percentage of their benefit based on their loss of income.
Some carriers' residual or partial riders require at least a 20% loss of income requirement as well as a loss of time or duties requirement. In these situations, once these requirements are satisfied, the disability insurance policy should pay the insured a percentage of their benefit based on their loss of income. For example, if an Oncologist was only able to practice 40% of the time due to a disability, and therefore was only billing for 40% of the procedures that they had before the disability, they would most likely have a loss of income. If we assume that the loss is solely due to injury and sickness and is 60% of his/her prior income, they could receive a monthly benefit equivalent to 60% of the monthly benefit. Most carriers pay a minimum benefit of 50% during the first six months of a partial disability. After the first six months of residual benefits, most policies pay benefits strictly proportionate to the income loss for the particular month in which you claim a residual benefit.
ProVider Plus' Residual Disability Benefit Rider is designed a little differently than most other disability insurance companies. First, there is no requirement that the insured have a loss of time or duties in order to receive a residual benefit. ProVider Plus' Residual Disability Benefit Rider considers you residually disabled when, due to injury or sickness, you suffer a loss of income of 15% or more of your prior income. This rider also has a recovery provision built into it to help assist with your financial recovery following a disability. Even if you have recovered from the injury or sickness that caused your residual disability, you would continue to be considered Residually Disabled so long as, solely because of injury or sickness, you have a loss of income of at least 15%. For the first 12 months that residual disability benefits are payable, with the ProVider Plus Residual Disability Benefit Rider*, your lost income will be replaced dollar-for-dollar, up to the policy's monthly benefit. After the first 12 months of residual disability, benefits are paid in proportion to your income loss. If the loss of income is 75% or more, it's considered to be 100%.
For an Oncologist, the Residual Disability Benefit Rider can be a significant benefit. If a disability took this physician out of work for a year or two, it is likely that they would have a period of time upon their return to work, where their income was much lower than before they were disabled. With the Residual Disability Benefit Rider available with the ProViderPlus contract, an Oncologist who returns to work full time and still suffers a loss of income of at least 15% solely due to injury or sickness, will continue to be considered residually disabled, and therefore eligible to receive a monthly benefit.
True own-occupation coverage and residual disability benefits are two key factors that the ProVider Plus offers to oncologists- There are other features and riders to consider- such as presumptive total disability-benefit, the Future Increase Option Rider**, the Cost-of-Living Adjustment Riders*** and more. It is important to understand all features of the policy that you settle on, because you need it to be there for you if and when you suffer a disability.
* The Loss of Income Indemnity payable under the Residual Disability Benefit Rider will be reduced by benefits payable under disability insurance policies that were in force before this rider is issued should the sum of all disability benefits exceed actual lost income. Optional riders are available for additional premium.
** Optional riders are available for additional premium.
***This benefit is not necessarily protection against increases in the cost of living.
Optional riders are available for additional premium
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 1355 Piccard Drive #380 Rockville, Maryland 20850. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (240) 683-9700. James Fegan, Financial Representative. The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian.
Financial Balance Group is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.
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