Individual Disability Income
Disability Income insurance provides a source of replacement income if you are unable to work due to an illness or accident. No one knows when or how a disability may occur. So, just as you would insure your car, your home and other valuable assets, you need to insure your income in case you are no longer able to work.
Lindsey asks, “If you became ill or injured and could no longer practice dentistry, how would you supplement the loss of income you had been accustomed to?” If you don’t already have it, you probably need disability income protection.
Getting disability insurance as early as your third year in dental school is advised, as the cost of individual coverage is based mainly on your age and health. Putting a policy in place early will lock in the rate you will pay as long as you keep the policy active.
Be sure that an “Own Occupation” rider is included in your policy to ensure you are paid benefits when you are not able to work in your trained occupation. For example, if you are sick or disabled but still able to work delivering pizzas, you would not qualify for disability payments without the “Own Occupation” rider.
Also, adding a Future Benefit Increase or Benefit Update rider may help you keep your policy benefits up to date without going through additional medical underwriting at a later date. For individual quotes, click links below:
Group Disability Income
Group disability is an option that will give you cost savings early on, but will limit the amount of benefit you may elect over time. Typically, group disability policies max benefits payable to $15,000 per month. The rates for group coverage will increase at regular age intervals, i.e. 25 years old, 30 years old, 35 years old and so on. To participate in the group disability program, you must be a member of the MDA.
Don’t wait too long. As noted above, this coverage is rated based on your age at the time of application and your overall health.