Posted by Amy Carbone on Oct 10, 2023 10:59:00 AM
In the event that an injury or illness prevents you from being able to practice, disability income insurance benefits may help to supplement your lost income while you’re unable to work.
Generally, disability income insurance policies will pay a specified monthly benefit in the event of a disability. The amount of coverage that you may purchase is typically based on your income. You should work with your agent to determine how much coverage is necessary, at a minimum, to cover your monthly expenses in the event you are unable to work. Although disability income insurance benefits typically do not replace 100% of your regular income, they may provide important financial security when you need it.
How Disability Income Insurance Benefits Work
Beginning a Claim
When you experience an illness or injury that prevents you from working you may begin the process of filing for benefits by contacting your insurance agent or company. They may help you to understand how to proceed, what paperwork you’ll need to provide, and answer any questions that you have about the claims process. In addition to benefits for total disabilities, many policies may also provide benefits for partial/residual disabilities. For example, a back injury may not completely eliminate your ability to practice but may result in a reduction of hours worked resulting in a loss of income
Disability Claims Process
Most disability income insurance policies include an elimination period or waiting period. This is the time period during which you must be disabled before any benefits are payable.
Once benefits are payable, they are typically paid in monthly installments while you continue to be disabled for a predetermined amount of time. This is referred to as the "maximum benefit period" and is oftentimes to age 65, to age 67, or to age 70.
If your disability lasts longer than one year, your benefits may be increased if your policy includes a cost-of-living adjustment rider.
What You’ll Need To Provide To Begin Receiving Benefits
Along with the insurance company’s paperwork you may need to complete and return, the insurance company may also request copies of your personal identification as well as income verification information such as your most recent tax returns. The medical verification information you may be asked to provide could include test results, scans, lab work, doctor reports, and other medical records.
Considerations for Obtaining Disability Income Insurance
Be sure you understand the details of a disability income insurance policy before you need to collect benefits. Policy parameters, coverages, and benefit amounts may vary or be customized for your specific needs or situation. Educate yourself on the options available, then work with a trusted insurance advisor who has experience working with dentists to obtain the policy you want. Since age and health may both be factors in premium rates, the earlier that you purchase disability income insurance coverage, the better.
Know Your Disability Income Insurance Benefits & Policy Terms
Options and terms of your disability income insurance policy may include:
- Non-cancelable and guaranteed renewable
- Level premiums
- Graded premiums
- Future insurability options
- Partial disability coverage
- Cost of living adjustments
Your Strategy for Disability Income Insurance
A comprehensive risk management strategy may include fully understanding the details of your disability income insurance policy, as well as how to collect benefits when you need them. Explore and understand the options available to you, from providers to policies, before an illness or injury prevents you from practicing.
For more information, download our Disability Income Insurance Guide.
About Treloar & Heisel
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.
