This article is sponsored by Pattern. We simplify disability and life insurance for busy doctors so they feel confident they have the right policy and that their income is protected.
Are you a doctor relying solely on your employer’s group disability insurance policy? Think again! Here are four major downsides to relying on employer policies and why you should consider getting your own individual policy:
1. Employer policies are not typically “own-occupation” policies. This is a must for physician disability insurance, but most employer policies are “any-occupation” policies, which are unreliable and restrictive for doctors. If you can work in any other position, you won’t meet the definition of disabled and won’t receive your benefit.
2. Employer policies are non-transferable, meaning you can’t take them with you if you decide to leave your employer. This could leave you in a bad position if you switch jobs and your new employer doesn’t offer disability insurance.
3. Employer policies are taxable, meaning if you have to use them, the money you receive will be taxed, leaving you with less than your current take-home pay.
4. Your employer can cancel or change the policy at any time, leaving you without coverage if you rely on it.
Don’t leave your financial stability in the hands of your employer. Get your own individual policy to protect yourself and your finances better. It’s a small price to pay for peace of mind and security.
While group policies have some downsides, there can also be some benefits in certain situations.
Here are three common situations where it can be beneficial to take advantage of your employer’s policy:
1. If your employer is offering group disability insurance free of charge, it’s a great option to take advantage of in addition to your own individual policy.
2. If your employer coverage has no medical underwriting. Suppose you have a serious medical condition and can’t qualify for individual disability insurance. In that case, an employer plan can at least give you an option for coverage, even if it’s not as comprehensive.
3. If your employer policy has no exclusions. Occasionally, employer policies don’t come with exclusions for pre-existing conditions or extreme sports/activities. If you’re having trouble getting an individual policy from the insurance companies due to health conditions or hobbies, the group policy could be a great option.
While there are occasions where group policies can assist in your financial stability, for the most part, they’re unreliable. They can leave you in a bad position if you become disabled in the future. It’s important to weigh the pros and cons and consider getting your own individual policy for peace of mind and security.
Why every physician needs disability insurance
The doctor’s guide to disability insurance: short-term vs. long-term
Why own-occupation disability insurance is a must for doctors
Group vs. individual disability insurance for doctors: pros and cons
Pattern simplifies disability and life insurance for busy doctors so they feel confident they have the right policy and that their income is protected. Request your quotes today.