There are a few variations to this.
We recommend True Own Occupation or Modified Own Occupation policies.
True Own Occupation is a must if you do any sort of surgeries or in office procedures. This ensures that if you become disabled and can’t perform your duties in their current form, you will be entitled to benefits EVEN if you can continue to work in a non-procedural fashion. i.e. if you cannot perform procedures but can still work in clinic, for instance, you will still receive disability benefits.
A Modified Own Occupation policy pays out if you're unable to work in your specialty, however, if you work in any other format, you will be ineligible for benefits. I.e. if a surgeon went back to work at the urgent care, he/she would not be eligible for benefits.
Make sure your occupation / specialty is defined as your specific specialty.
From a practical standpoint, this type of policy may not be necessary for physicians who perform no procedures at all. e.g. many internists, psychiatrists, etc.
Of note, this is sometimes offered as a rider i.e. an option.
A must. It is what it sounds like. The insurance company cannot cancel your policy and has to renew at the same initial agreed upon premium, year over year.
In a graded policy, your policy premium starts out cheaper but gets more expensive as you get older. i.e. your monthly payments increase with time. With a level policy, premiums start out higher, but remain the same throughout the lifetime of the policy. Meaning, your payment never changes.
You can change from a graded policy to a level policy at a later time. This can be a smart financial strategy, particularly when you are trying to lock in the best policy when you are younger and healthier, but you are still in training and money is tight.
This is the length of time during which you are eligible for disability payouts. Therefore, the age until which you want the policy to be active. Typical options include to age 65, 67, or 70.
A lengthier benefit period typically raises the cost of your policy.
Again, picking a benefit period ties closely in with your financial goals. For instance, if you plan to be financially independent by 65 or earlier, you may not need a benefit period that extends beyond age 65.
This is basically the wait time between initial injury and your first benefit payment. Typical options include an elimination period of 30, 60, 90, 180, or 360 days.
A shorter elimination period typically raises the cost of your policy.
Again financial considerations are important here. If, for instance, you have a 180 day emergency fund in your savings, a 180 day elimination period may make the most sense for you. On the contrary, if you are having a difficult time saving up an emergency fund, a shorter elimination period may be more appropriate.
Finally, if you have a short-term disability plan through your group or that you have purchased, you may also adjust your elimination period accordingly.
