- Email: info@yourclinic.com
- Phone Number: +123-456-7890
What is disability insurance? It’s insurance for your paycheck — your most important asset. Here’s what you should know about disability insurance coverage.
What do you consider your most valuable asset? Is it your house? Or maybe your car? It’s actually your ability to earn a paycheck, and you should insure your income as you insure your other assets.
What are Guaranteed Disability Insurance policies?
Guaranteed Disability Insurance (GSI) disability insurance policies are simply individual disability policies available to you without having to answer an extensive medical history questionnaire. This is your own personal disability insurance policy you can take with you from training to attending.
Key Features and Benefits
1. Guaranteed Coverage: One of the most significant advantages of Guaranteed Disability Insurance is that it offers guaranteed coverage regardless of changes in your health status. Once your policy is in place, you will not lose coverage even if your health deteriorates.
2. Income Replacement: This insurance provides a predetermined monthly benefit that replaces a portion of your lost income, helping you manage daily expenses, medical bills, and other financial obligations during your period of disability.
3. Non-Cancellable and Guaranteed Renewable: Policies are typically non-cancellable and guaranteed renewable, meaning the insurer cannot cancel your policy or increase your premiums as long as you pay the premiums on time.
4. Tax-Free Benefits: In many cases, the benefits received from a Guaranteed Disability Insurance policy are tax-free, providing you with the full amount of the benefit to use for your needs.
5. Customizable Plans: These policies often allow for customization to fit your specific needs, including the option to choose the benefit amount, waiting period before benefits begin, and the duration of benefit payments.
6. Portable Coverage: Guaranteed Disability Insurance policies are generally portable, which means you can keep your coverage even if you change jobs or career paths.
This offer is available only for Residents and Fellows only at Indiana University and the University of Cincinnati.
As a resident or fellow at IU or UC, you have access to an own occupational disability policy through Ameritas. They offer one of the few policies recommended to physicians by The Bold White Coat Investor. The policy is available on a Guaranteed Standard Issue (GSI) basis.
How can I increase my coverage?
You can increase your coverage amount to as high as $15,000 per month as your income grows. Your policy will be issued without any exclusions from coverage or surcharge, regardless of your medical history.
How can I qualify for this policy?
You can obtain this policy with a simple online application that takes only a few minutes to complete.
You will not qualify for this policy if you have applied for disability insurance in the last five years and been declined for coverage or had your policy issued on a modified basis. That means your policy was issued with an exclusion rider, premium surcharge, or policy limitation or change due to your medical history.
If you were to do your own research online, you will find that it is recommended you inquire about GSI policies available at your academic institution.
GSI policies allow you to obtain disability insurance without having to complete an extensive underwriting questionnaire or complete lab work or provide your build.
f your employer offers disability insurance coverage, you will automatically qualify. Many employers offer group disability insurance, which covers their entire workforce. And as a result, factors like pre-existing health conditions or age shouldn’t stop you from getting this coverage.
If you are considering purchasing individual disability insurance coverage through a private insurer, factors like your health and profession are taken into consideration when the policy provider determines your eligibility. Depending on the level of coverage, you will likely have to take a health screening.
If you’re a part-time employee or a stay-at-home parent, it’s possible you may also qualify for a disability insurance policy.
See below for an attachment that describes the issues/problems with obtaining disability insurance on a non-GSI or fully underwritten basis.
How much Disability Insurance do I need?
If a disability affects your ability to earn money, you’ll want disability benefits that replace the lost income. How much disability insurance coverage do you need? The answer is likely to be “as much as possible.”
Generally speaking, short-term disability coverage through work replaces up to 80 percent of your income. That’s typically the best you’ll get when it comes to a short-term policy. Such benefits, however, are only payable for a limited period of time.
With long-term disability insurance you can usually cover most of your current annual income. But you may only be able to get this level of coverage by getting more than one policy, especially if what you’re offered through work covers only 50 to 60 percent.
When is the best time to purchase the policy?
It is less expensive to purchase your policy as a resident or fellow as opposed to waiting until you are an attending. This is due to the discount of 20% available to you while in training. The discount follows you into practice—you don’t lose it when you finish your training.
Premium rates are in part based on age and the younger you are when you purchase your policy, the lower your premium will be.
Premium rates vary from state to state. Indiana and Ohio are both in the lowest cost tier for disability insurance. If you purchase your policy while in Indiana or Ohio, you permanently “lock-in” the lower premium rate on your coverage. Moving to a higher cost state in the future will not result in a premium increase. See below for an attachment that provides state pricing details.
You will see that the highest cost states are California, Florida, Nevada, and Texas.
