4 minute read
A common question we hear is “If I am covered by my group policy, do I really need an independent disability insurance policy?”
To put it simply, the answer is YES.
There is a lot of confusion and misunderstanding about what an employer group policy provides coverage-wise.
Let’s break it down to answer the question of if you should get your own policy, or is your employer policy good enough.
In short, most employers will offer a form of short and long-term disability insurance as a benefit to their employees. This can be seen as a form of protection and security.
However, there are major disadvantages to an employer policy that make it less comprehensive and unreliable.
The main disadvantage of the employer policy is they are not true own occupation.
Most employer policies are classified as any occupation. With any occupation definition, this means you if you are able to work in any other position you will not be qualified as disabled.
For example, if you break your hand and are unable to perform your duties you would not be considered disabled because you could still work as a librarian or receptionist.
This is a major downfall when it comes to physician disability insurance.
Another disadvantage is your employer benefit is taxable!
This means that if you should have to use your employer policy, the money you’d receive would be taxed, leaving you with way less than your current take-home pay.
This would impact your current lifestyle as you’d have to adjust to a much lower take-home pay if relying only on employer disability coverage.
This is a disadvantage that you do not see with an independent policy because the benefit is not taxed.
Another unfortunate downfall of your employer policy is they are not portable. This means if you leave or change your employer you can not take your policy with you.
Since each employer is different there is no guarantee your next employer would offer coverage. This could leave you in a vulnerable position.
The last downside is that your employer owns the policy, not you.
This aspect is often overlooked, however, it is extremely important.
Your employer obtains the right to change, cancel, or modify this policy at any time and you have no say in this matter.
If in the future your employer cancels the physician group policy, and you were relying on that policy, it could leave you in a bad situation for getting your own policy if your health has changed.
This is why medical professionals should consider their own personal policy as their base policy, and whatever any employer is given them as a supplemental.
If you have coverage from your employer and you have been holding off looking at your own options, thinking that it covers you well enough, trust us it's not going to.
Getting your own individual policy will better protect yourself and your finances as well as save you from the grief of being caught in a situation unprepared.
Get started by filling out your quote request here!