Group insurance coverage for disability is provided by employers to their employees as a benefit. Such coverage can be both short-term or long-term and not be valid if you quit or lose the job because it cannot be ported to a different carrier. It is generally understood that a group disability insurance coverage cannot provide adequate income replacement either in terms of the benefit amount or the benefit period. Therefore, most people choose individual disability insurance (IDI) policy to supplement the inadequacies of a group policy. Despite that, there are some clear advantages of a group disability policy that can supplement some inadequacies of a long-term disability policy. Industry professionals like a broker advisor can guide you best on such matters.
Short elimination period of two weeks
The most noteworthy advantage offered by a group short-term disability insurance policy is a very short elimination period of 7-15 days. If your claim is approved, the benefits start rolling in within a fortnight of claim submission. This is undoubtedly a very effective way to address your disability concerns especially if you need a quick turnaround on your claim.
There could be several reasons for you to expect a quick turnaround on your claim. There are enough disability stories to show that people with just a long-term disability policy had very tough times especially when their elimination period had stretched to the maximum duration of 3 months. In emergency situations, a period of 3 months would seem to be 3 years.
A low-cost option with clear advantages
Another major advantage of a group short-term disability policy is that it is paid fully or partially by your employer. If you read disability articles, you would learn that you are liable to pay the taxes due at claim time. However, if you decide to pay the premium from your pocket, you would be exempted from any such tax at claim time.
Some doctors refuse to buy a disability insurance policy, saying they are already covered by a group short-term policy. Disability cannot extend beyond a few months they say. There is still a lot to be appreciated and understood about disability insurance although the carriers are doing all they can to educate the market through disability insurance awareness month every May.
Should be used for optimum overall benefits
As much as it is indispensable for all wage earners, it is also important for you to understand the basics of doctors disability insurance. Reading the fine print on a policy document and comprehending it fully is time-consuming and hence you ought to hire a reliable broker agent advisor to guide you. Ask your family and friends to recommend a broker they may know to be trustworthy.
As a doctor, it is likely that you also regularly read disability news stories and you may even have patients who are disabled and getting the benefits of their disability insurance. It doesn’t take long to know that any kind of insurance is laden with layers and layers of terms and conditions to determine limitations as well as riders to optimize the policy.