Does disability insurance cover everything? Unfortunately not, and you may have heard of disability insurance exclusions and limitations. Let's break down the variables that contribute to a disability policy being issued at less than 100% of its potential: the insurance company, the agent, and the client/insured.
Why Do Disability Insurance Companies Add Exclusions and Limitations?
Insurance companies protect against risk, this is the nature of their business model. Insurance companies offer policyholders a means to protect themselves against a risk of loss they cannot otherwise pay for on their own (self-insure). However, insurance companies also have to protect themselves, as businesses, against risk as well – this is why they have underwriting. Each insurance company has slightly different criteria within their underwriting model; underwriting is the way the insurance company determines if the risk a potential policyholder presents is “worth” the policy premium it would receive. In the case of disability insurance; the insurance company evaluates the risk an applicant presents and may approve a policy, but, that policy has exclusions, limitations, or restrictions. The insurance company does this so it can still insure someone, but protect itself from what it sees as certain “high risk” conditions pertaining to that applicant.
What are Exclusions in Insurance?
An exclusion is where the insurance company says that they will insure a client, but will add language to say that they will not cover certain body parts, conditions, or activities. Some black and white examples would be:
- Multiple knee surgeries to repair damage from skiing or playing sports. Disability carriers are likely to exclude that knee, at a minimum.
- A pre-existing health issue like anxiety treated with medication. Carriers are likely to exclude “mental/nervous” conditions.
- Free-climbing (rock climbing). The insurance company is not going to cover a disability stemming from an activity they consider to be a hazardous.
Are Disability Insurance Exclusions Permanent?
Exclusions can be written into the final contract as permanent, or “reviewable” after a certain period of time. Using our examples above; the medically repaired knee might be a permanent exclusion (although it cannot hurt to have it reviewed). The anxiety may come with language from the insurance company saying the equivalent of, “In two years, if the client can demonstrate [backed up thoroughly by medical records] that the anxiety is resolved, and the medication has not been taken [per the advice of the prescribing physician], a review of this exclusion will be possible.” This is not a promise on the part of the insurance company, but there is the possibility of a review.
Dr Feinauer, leading the first pitch of the ever-classic Fin Arete, 5.10bR, Little Cottonwood Canyon, UT. He led this scary pitch because his disability insurance doesn't exclude climbing. 🙂
[Editor's Note: Don't count on ever getting a dangerous activity exclusion removed, it simply isn't logical. For example, consider my climbing exclusion. If I stop climbing, I don't need the exclusion removed. If I'm still climbing, why would they remove it? The only incentive for the insurance company to remove an exclusion is if you are taking your business elsewhere because someone else is offering you a policy without an exclusion.]
What are Disability Insurance Limitations?
A limitation may not be as pointed as an exclusion, but still limits the disability policy in some fashion. An example of a limitation would be:
An applicant has some health issue(s) and the insurance company issues a disability policy, without exclusion, but limits the policyholder’s benefit period to 10 years – instead of the “to age 67” they applied for originally. The insurance company is limiting their risk by limiting the duration they would potentially pay out benefits.
Pre Existing Condition Limitation
Any medical conditions you have at the time the policy is issued will likely be excluded, meaning if you have heart disease at the time of issuance, and it leads to you being disabled 5 years later, the policy isn't going to pay. Again, apply when you are young and healthy and/or when you haven't had medical problems for several years to minimize this.
Mental/Nervous Limitation
Many companies limit benefits to two years, where they might pay for “physical” disorders until you're 65 years old).
Other Disability Insurance Policy Exclusions
- War or act of war (with our current War on Terror, this could probably be interpreted pretty broadly)
- Active Military Duty (having served, this is pretty stupid since 95%+ of our military folks are never in any kind of serious danger of being hurt by a combatant)
- Normal Pregnancy (don't want to work because you're 8 months pregnant? Don't bother trying to get disability benefits for that)
- Foreign Travel (varies by policy, but many don't cover you during that European vacation, must less that humanitarian trip to Sudan-read the fine print)
How to Work with a Disability Insurance Agent to Understand Limitations and Exclusions
The Agent
So, how does the agent factor in? The agent has a dual responsibility – they need to serve you as their applicant/client, and they also need to operate with integrity when dealing with the insurance companies. Your agent needs to do a lot of things to keep your insurance application process (or policy service) moving along smoothly. For the purposes of this article, we are going to limit our discussion to exclusions, limitations, and restrictions within a disability insurance policy. Buy your policy from one of our recommended independent insurance agents. Not only do they have access to many unique discounts and the policies of every one of the Big Six Companies (Ameritas, Berkshire/Guardian, Ohio National, MassMutual, Principle, and Standard Insurance Company) selling true own-occupation, specialty-specific policies for doctors, but they also sell hundreds of these a year to white coat investors. They really know the ins and outs. If they can't get you coverage at the best possible price, no one can.
What your agent should be doing:
- Help to clarify or expand your answers pertaining to medical history and questions.
- Work with the underwriter of an insurance company and fight (advocate) for the very best, and most robust offer that insurance company will write.
- Ensure that you are applying with the insurance company that is best for you; remembering that each company has their own matrix for underwriting, policy features & benefits, as well as their own pricing models. The agent should be going into the process with all options “on the table”. They should be willing to move to another carrier if underwriting is indicating a negative approval. This is not to say that the original carrier should be “off the table”, but rather, to say that they need to be fighting for the best possible coverage for you.
What your agent should not do:
- Hide things for you – no credible agent ever would, and there are ramifications to you as the policyholder, as well as to them and their career if they do.
- Only offer you one option, unless the marketplace (literally) only has one option for you. This is exceptionally rare. You, as a potential policyholder may not like all of the options, but you almost always have more than one option.
- Offer the insurance company that is best for them as agents.
The last “should not” bullet is where we need to spend some additional time. To understand whether or not you are getting an objective analysis of your disability insurance options, you need to understand –in brief – how an insurance agent gets paid. If you work with an agent and you put a policy in place, the insurance company pays that agent a percentage of your overall premium, generally called first year commission. If you continue your policy year after year the insurance company may pay that same agent a smaller percentage each year, for x number of years (each company is a little different), this is called a renewal. Getting paid is not inherently the problem; doctors, plumbers, architects, and insurance agents get up every morning and go to work to earn money to live their lives.
Where it becomes difficult for a consumer is in understanding if your agent is working for you as a client, or “for” an insurance company. Insurance agents, generally, fall into one of three categories – regardless of the title they have on their business card:
“Independent”
This is an insurance agent who represents a variety of companies and in all likelihood, places insurance business with multiple different carriers throughout the year and over the course of their career. This agent is appointed by these carriers to represent their insurance product portfolio, but they have very limited contractual obligations (read: production requirements) to those carriers. For you as the client, this can afford you an objective look at the entire marketplace without wondering if your agent is guided by a sales goal.
Full disclosure: some insurance companies pay more than others but agents should not be compromising their objectivity over +/- 5%.
Company “X” Representative/Advisor
This is an agent with a “home team” company and they have formally aligned with company “X” by virtue of a contract. Within this agent’s contract with company “X”, is some form of production requirement to place that company’s insurance product portfolio. This agent likely has the ability to represent additional companies to their clients, but it may be to their advantage to get as many clients as possible to buy the “home team products”.
Full disclosure: you are not necessarily disserved by a company representative. I know many phenomenal agents who look out for their clients, always deliver solutions and products that are the very best fit for the client needs/wants, and objectively represent multiple companies while maintaining their contract with the “home team”. For you as a client, you just need to mindful that you are receiving the best offer for you, not for your agent.
“Captive” or “Proprietary”
This is an agent, who by some contract of employment, only represents one company and the insurance products that company offers. They may not be allowed to represent any other companies at all, or may have a limited secondary offering only when the client is declined for the “home” company insurance product. This can be very restrictive for you as a client because “every peg just has to fit in the same hole”. The product, cost of insurance, and approval may not be the best for you – but ultimately, that is the only thing that agent can offer [i.e. sell to you-ed] you so they may try to persuade you to take it no matter what.
Full disclosure: there are great agents who have found the right “profile” or “target market” of potential clients where their offerings fit well and serve the best interest of the client.
Type of Agent and Exclusions, Limitations, and Restrictions
If your agent is trying to get you to accept a policy with one or more exclusions, limitations, and restrictions, you need to wonder – would other quality carriers have the same modifications? Your agent should be able to provide you objective feedback on that question. If you are the person with multiple reconstructive-level knee surgeries, you should know that it is likely that all carriers would operate the same way when it comes to that knee.
What if the modification to your policy is more of a gray area than a black and white example? Is your agent looking to get you the best possible policy (perhaps without the same modification) or are you just discussing the “home team” insurance policy? Remember, while they all operate in the same industry, different insurance companies may view variables differently. “Looking” for better options means that you should have correspondence direct from the other carriers. If the agent lightly mentions the other companies, it could mean that it is time to “dig deeper”.
What if you already purchased a policy that has exclusions, limitations, or restrictions? Is your agent actively looking to get an exclusion reviewed on the predetermined timeline to see if removal is warranted? As the dynamic of the disability insurance marketplace, not just their company, continues to change is your agent staying abreast of opportunities for you as a client? If your exclusion was reviewed and the insurance company kept it in force, would another carrier possibly issue an equivalent policy without the same modification?
The Client/Insured
So, what is the bottom line for you as the policyholder of, or applicant for, disability insurance? (A similar approach should be taken when applying for term life insurance)
Sometimes, an exclusion is an exclusion and the modification to the policy is just going to be there. Insurance agents can research, advocate, and scour the marketplace, but in the end, certain exclusions are warranted. As the policyholder, you now know that options were explored for you, and can make the informed decision of whether to place that modified policy or not.
Does that really look dangerous? Look at all those attachments to the mountain! Look how thick that rope is! Why is this excluded while backcountry skiing and swimming with sharks is not? /rant
If you are dealing with an objective agent:
- They will be professionally firm and help you navigate if a slightly modified offer from Company A truly is better than an offer from Company B that is not modified. Would you take a disability insurance policy that did not protect your own occupation as a surgeon because it excluded a hazardous activity like free climbing? (By the way, all high quality carriers will likely exclude free climbing.)
- They will help you compare carriers, their respective pricing, the contract features & language, and advise you of what best fits you as a client, not them as a person with a sales goal.
- If you flip over their business card and read the fine print, they should be able to cogently explain which company or companies they represent and how they intend to serve you as a client.
In the end, your insurance agent should be sitting on the same side of the table as you – their client, not an insurance company.
[Editor's Note: One other option not mentioned by Mr. Warren is to purposely choose a less than ideal group policy for part or all of your insurance coverage. Group policies available through your employer or professional association may not be portable and may offer less comprehensive coverage, but what they often don't do is ask pesky questions about your health and recreational activities. You may find it less important to have true own-occ coverage, portability, or a high-quality inflation rider than to have your SCUBA diving, anxiety, or knee injury covered. Be sure to discuss ALL your options, even if you have a truly independent agent (who won't get a commission at all if you go with a group policy.) One additional benefit of that group policy is it is likely MUCH cheaper, at least while you are young, allowing you to buy more coverage.]
Have more questions about disability insurance and what kind of policies would be the best for you? Hire a WCI-vetted professional to help you sort it out.
What do you think? Do you have an exclusion, limitation or restricted rider on your policy? Have you been able to get one removed? What did you choose to do with regards to health issues or dangerous activities? Why do insurance companies always ask about climbing but never about asphyxiation games? Comment below!
Thanks. Nice overview.
Yet another option is a Guaranteed Standard Issue (GSI) plan. These policies are issued without medical underwriting and are typically available to graduating residents and fellows in certain academic institutions (and in some cases even those that are not graduating).
Carriers such as Ameritas (formerly Union Central), Berkshire (Guardian), MassMutual and Standard make them available at specific institutions. Some of which simply use a conversion program that allows an insured to convert to an individual policy from an underlying employer provided group LTD plan.
Typically, there is an “endorsed agent” that has the ability to provide the plan to the residents and fellows, but agents that work in and/or specialize in the medical marketplace should know of them and be able to point insureds in need of this program to the endorsed agent(s) – even if they cannot provide them to the client directly.
Keep in mind, that at least one of the carriers will take this program “off the table” if an insured has been declined in the past few years by their company or another individual carrier.
Therefore, if you suspect that you have a condition that might cause your application to be declined, it makes sense to investigate the availability of a GSI program prior to going through medical underwriting.
I should also mention that those Attending Physicians in larger practices can also look into the possibility if establishing a GSI program on either an employer paid or voluntary (employee paid) basis.
I have an exclusion on my policy due to a minor health condition with the option to have it removed after 2 years. I am looking into the documentation required to remove it. Luckily, it is minor enough to not be a big deal.
I wasn’t participating in high-risk activities at the time of underwriting, so there are no exclusions in my policy for any of those. Does this mean I can now take up free climbing if I want, since my policy is already in place? And I won’t be denied disability if I injure myself doing it?
Yes, that is correct. With a Non-Cancellable, Guaranteed Renewable policy, the underwriting is done at the time of application. Any avocations that you take up after the policy issued would be covered in the event of a disability.
This is awesome! I am officially taking up rock climbing, sky diving, base jumping, bull fighting, and motocross racing…..
Or maybe I will just stick with golf.
Good info to know though!
It can’t hurt to have that exclusion reviewed.
Since climbing is not specifically excluded from your policy, you would be able to go climbing and if you did become disabled, the policy would pay under the terms of the contract. Keep in mind that every claim is reviewed individually.
Due to a documented history of joint laxity all the disability insurers proved to be very wary of me (for implied cardiac history despite now 3 normal echoes, the last at their request during underwriting!). As a result I’m stuck with a very limited $5,000/month, 5 year maximum duration limited policy.
In my circumstance the group policy that I become eligible for in half a year is much more attractive: 60% of pre-disability gross income (albeit pre-tax), no underwriting, and the premium is entirely covered by my employer. Needless to say, I won’t be holding my individual disability policy a moment longer than I need to.
Are you still a resident or fellow? If you are, depending upon your hospital affiliation, a GSI plan may be available. In any case, it is worth exploring. If you email me, I can probably tell you if one exists and if you qualify to purchase it or you can post it here but I figure you prefer privacy.
As an aside, don’t be so quick to drop your individual policy when you enter practice as, generally, unless the group adds the premium that they pay on your behalf back to your taxable income, any benefits received would be taxable income to you.
Your individual policy would fill in the taxes and make up (to some extent) for any shortfall in the event that you earnings exceed the monthly cap on the group LTD plan.
The price isn’t good. I could certainly live in perpetuity on 60% gross income–taxes would be less, and I wouldn’t worry about retirement savings since that’d be essentially my own annuity.
I’m too old for a GSI plan–finished fellowship last year, started practice July 2014.
If the price isn’t bad on that individual policy it might be worth keeping. At least it’s portable. Be sure to also look into anything your specialty society offers.
I wanted to chime in on the expanses of our editor and my respected colleague Larry.
Great discussion – if you are out there and you have a restriction/limitation/rating/exclusion on your existing policy, you should be looking into all your options. Looking and talking is always free. At worst, you will walk away with the confidence that you have turned over every stone.
Group policies:
These should also be considered as “on the table” options, whenever they are available. In some cases, the employee is required to have the group insurance (read: has to jump through a tremendous number of hoops to get out of it). Generally priced (to the insured) at somewhere between next-to-nothing and very inexpensive, and with zero-to-little underwriting (maybe a couple of checkboxes), this group benefit should always be weighed in the greater analysis. I have personally seen VERY robust group disability coverage: own occupation, age 65, $15,000+ cap on monthly benefit. I have also seen others that are age 65, but the cap on benefits is $7500, and the contract language is the equivalent of a (very) modified own occupation – protecting the insured for only two years within their specialty.
Though most group plans for doctors have true own occupation language wording, there are often a number of limiting factors within these policies: residual triggers at 20% with additional requirements, 24 month maximums on mental/nervous conditions, limited-to-zero recovery benefits, may or may not be portable (and at what price?), and they are not non-cancellable. Basically, it means it can change while you are participating; generally not to your advantage. Only by reviewing your LTD summary and supporting documentation (read: the fine print), and having your agent translate insurance-speak into English, can you really decide what you have in front of you. It could be terrific, it could be weak, most likely it will be somewhere on the spectrum between them.
Guaranteed Standard Issue policies:
Larry did a great job of discussing this option.
Association policies:
Association policies also should be discussed & considered in the decision-making process. These policies typically still come with underwriting and have a pricing model that can be less than what the stand-along marketplace may be offering. Association policy intricacies and comparison could probably support an article on its own, so the most accurate and pithy summary I can deliver is, all insurance contracts come with fine print – they should always be thoroughly reviewed.
Instead of recreating the wheel. Here are two guest posts that I did on association disability plans:
https://www.whitecoatinvestor.com/association-disability-plans-all-that-glitters-is-not-gold/
https://www.whitecoatinvestor.com/association-disability-plans-all-that-glitters-is-not-gold-part-2/
I have a policy that has an exclusion, I have other policies from the same insurer without the exclusion as they were purchased at different times. The policy with the exclusion has a future purchase option that I won’t use due the exclusion and I will drop the policy as my insurance needs decrease with time. Now with a new employer I have a group policy as well, but plan to keep my individual policies as the portability is important to me. Previously my group would reimburse me for my individual policies which worked out well.
Last year I replaced 2 of my policies because of exclusions. Actually, I replaced my Mass Mutual policy and decreased my Met Life policy. Both had mental nervous disorders limited to 24 months. I replaced with a Standard policy that didn’t have that exclusion. I also saved another $1000+ by getting the policy non-cancelable, but they can increase the price for everyone in my class if they choose. That was a risk worth taking for me as it saved just over 20% on the new policy.
My old policy with Met life still has an increase option if my income goes up and I want the increase or if Standard ups their prices a bunch and I couldn’t reapply due to something happening with my health.
My original agent tried to get me not to switch by telling me that mental nervous is only a super small percentage of claims. I told him if that was true, why do they exclude it on my policy?
Overall, better policies and paying about $4000 less each year. The only thing I wish I would have looked into more is the graded premiums where they go up over time. I don’t see myself needing these policies after 50.
It’s not recreating the wheel. Who said that what you wrote is the wheel? Maybe Rick’s idea of a wheel is different…just saying. Cheers to all. Nice addition Rick!
I’m a current EM intern applying for DI now. My insurance agent initially just applied me through Guardian (I could only assume he gets the biggest kickback for them) and they gave me a 5 year policy due to an active anxiety issue I am currently working through. I went back to him and asked to apply to several other companies which he obliged and I am currently awaiting decisions on. This whole DI is a cluster – to anyone thinking about applying I would highly recommend waiting to see that shrink until after you get your policy – I was and still am shocked about how much my policy was limited just due to being on an SSRI.
Dear EM,
I recently worked through an anxiety issue and took an SSRI but stopped awhile ago. Specifically how did the insurance company shape your policy after you told them about the anxiety issue? Thanks.
How long ago is a “while” ago?
I can tell you that, generally, if it was within the last 2-3 years and you took an SSRI, any policy issued will have an exclusion rider (will not pay benefits) for claims related to mental/nervous and/or substance abuse disorders, a 5-Year benefit period (not to age 65 or longer) and no increase options will be available.
However, if it was over three years ago, the anxiety was situational, the dosage of the medication remained the same (and you only used one medication) and you didn’t have multiple diagnoses such as ADHD and/or anxiety and/or depression) or suicidal ideations or Dysthymia, then you could potentially have a policy issued with benefits to age 65. There may or may not be a mental/nervous exclusion rider and the increase options may or may not be available.
It is best to speak with an agent/broker that you can provide the specifics of your situation to and have them discuss things in advance of you ever applying with the underwriters at several carriers. This can easily be done informally so you don’t go through the time and effort of applying only to find out that you don’t qualify for the benefits that you want.
If you can have your PCP or the psychiatrist that treated you at the time put a summary letter together with the diagnosis, length of treatment, medication and dosage and the date that treatment was no longer required, that would be even better.
Hope this helps.
Hello EM Intern, drop me a line at [email protected]
I would be curious to learn more about what is going on with your approval process for DI.
Hello everyone,
I am currently in final stages of applying for a policy with Standard. I do have a “cost next to nothing” group policy and can not get out of it since I am employed. I have also decided to take a chance (after carefully reading all sections on this issue here on this website) and exclude a NC rider from my policy. Is this a good idea? I am still struggling if this is a good decision…
Forgive me but I can’t seem to remember what NC stands for. Non-cancelable? A post on that here: https://www.whitecoatinvestor.com/is-noncancelable-really-worth-it/
Is it a good idea to buy a Guaranteed Renewable policy that is not Non-Cancelable? Got a crystal ball? The only time it would matter is if Standard obtained an approval from the state insurance commissioner to change the rates for existing policies, all in the same occ class. Will it happen? Who knows? Nobody knows……If rates change, then maybe it was a bad idea. If they do not, then maybe a great idea.
Have you looked at quotes from all carriers? Standard is definitely priced higher in most cases for physicians with their Protector Platinum policy.
Have you compared rates for what you can obtain for a similar price for a Non-Can policy from another carrier?
I believe that there is less unknown risk in leaving off the COLA rider (as an example) than there is with leaving off the NC rider.
Most carriers do not give the option to buy without it being NC.
If you are considering leaving off NC from Standard as a physician, then my guess is that the broker that you are working with did not do a great job with showing you other options.
It could also be the case that your health history has led to all carriers except for Standard saying that they will not approve favorably. Is that the case?
You could reduce the benefit period to age 65….you can leave off or reduce COLA. You can reduce the monthly benefit. You can reduce future purchase options. You can move to a 180 day EP.
Not buying a NC policy could lead to a wider swing in the “unknown”.
If you are young, then you are relying on them not changing their policies for decades.
[email protected]
Thank you for your comments.
I love in CA and I am an ophthalmologist.
I trust my agent (he is a actually a guy who occasionally posts on here).
I have looked at Guardian, Ameritas, Standard and Met Life.
The only 2 that do not limit mental/nervous conditions in my state are Guardian and Standard.
Standard was much more reasonable, especially is I leave off NC. Guardian was ~15% more expensive.
No health problems at this moment (knock on wood) and I had (or still have) an option to go with any above mentioned company.
My agent actually recommends against leaving off COLA since I have 25-28 year career ahead of me.
I know there is no crystal ball but having read WCI section in NC, I am leaning towards leaving it off. Granted they don’t change specialty specific language, of course.
I left it off my policy. I had my agent look to see when one had actually been changed and it has happened once with standard. The problem with them changing it is healthy people will leave if they up the rates, leaving all the unhealthy ones who can’t get another policy. What they do more often it seems is change or add another class so they can change the premium on one’s going forward, but not mess with the ones from before. (That’s what the 2 agents who gave me quotes for 4 companies told me, and I belive them in this case because they knew I could afford the rider, and it would make them more commission if I bought it, so why lie in that case?)
Leaving the rider off saved me almost 20%, so for me I was totally fine with it. I don’t plan on keeping the policy until I’m 65, probably just 20 years actually.
Anyways, I would look at what the rider costs and see if it’s worth the risk. For me, I went with Standard, best mental nervous, and left off the rider. Your situation may be different.
Sorry for errors “…live in CA…”. I do love in CA too 🙂
One quick clarification:
In California, Standard is the only policy that does not limit claims for mental/nervous and/or substance abuse disorders.
All Guardian policies issued in California do contain a 24 month limitation for those types of claims.
Mr. Keller, thank you for that. I believe you are correct.
Even more reason to go with Standard. Now just need to decide NC or not.
Yes, especially with a lower premium rate.
Does your Standard policy include the 10% Preferred Producer Multi-Life Discount?
If not, that would provide you with an additional 10% savings.
Yep, getting 10% discount.
Thank you for the great article! I unfortunately made an admittedly stupid mistake of not buying disability insurance prior to residency and was later diagnosed with psoriatic arthritis (very mild, no limitations on my activity, and not taking any medications currently) . Now that I am looking for jobs, I learned that not all jobs offer a group policy. Any advice on what would be the best options for me? Will I be able to get a long-term individual policy excluding my arthritis, or are the only options available policies with limitations on the payout period? Or should I limit my search to jobs that offer a group plan? I would very much appreciate any advice on how to make the best of things moving forward. Thank you for your help!
Stan,
It’s been mentioned a few times in the comments above, but you should get informed on whether there is a Guaranteed Standard Issue policy available through your GME program. Most of the agents/advisors on this site should be able to help you locate one if it exists. This would be your best option because it will avoid exclusions outright.
If a GSI option is not available, you should reach out to an agent and review the details of your history with him/her so they can help you understand the most likely outcome before ever submitting an application. An exclusion would be the best case scenario for a fully underwritten plan, but any approval will ultimately depend on your original diagnosis, symptoms and treatment.
Stan,
Can you send the specific details to me at [email protected]? (Rick wrote this article, he is my business partner and you can email both of us – [email protected])
From your question: Will I be able to get a long-term individual policy excluding my arthritis, or are the only options available policies with limitations on the payout period? – It is too early to tell what you might be able to get.
If you email me with a basic introduction, I can send you an encrypted email that you can use to reply with specific information.
It is easy to shop it to the key players in the market. You will know what each company would do and then could make a decision about applying.
Hope to hear from you soon.
Stan-
I agree with Michael that you best option would be a GSI plan. However, another option might be converting your employer provided group LTD coverage to an individual policy toward the end of your residency (it seems like this might be your situation).
If you email Michael or me there is a very good chance that we can tell you if a GSI plan or conversion plan would be available to you.
Keep in mind that if you apply for an individual policy with medical underwriting, you will likely be declined or heavily rated (50-100% extra premium charge), receive a policy with a very limited benefit period (2 or 5 years and not age 65 or longer), no increase options and an exclusion rider for arthritis.
If there is no GSI Plan or Group Conversion Plans available, I would suggest that you stick with jobs that will provide you with some level of disability insurance coverage.
Just you or Michael, Larry. Come on now. Stan, Feel free to message Rick, the author of the article.
Happy holidays.
As you can see Stan, there is a lot of competition out there for selling disability insurance. Take advantage and make sure you get some good advice and service for the significant commission you pay as part of the initial premiums. I have full confidence in all of the agents who advertise on the site to do the right thing for you. Obviously, they’d all love to have your business, even if it means they recommend against buying an individual policy (the only kind they would get a commission on) at this time for you.
Thanks everyone for the advice! I will definitely look into these options. In the meantime, was curious to hear what advice anyone might have for worst case scenario- that I am unable to get any form of long-term disability insurance (i.e. no GSI, no group plan available w employer, denied individual policy)? If this has happened to anyone on here, how did the lack of insurance affect your overall financial picture- buying a house, savings, etc?
Any thoughts?
I can’t speak to anything else but assuming the worst case scenario, I would try to focus on jobs that provide you with some level of protection.
This would likely mean a hospital employed position or larger practice as a sole practitioner or small practice likely will not provide any coverage to you.
The first thing to do is to check for a GSI plan or guaranteed conversion plan that you might be able to take advantage of via your hospital. I would look to avoid medical underwriters.
If you can’t get the standard disability policies you might want to look at quotes from Fidelity Security for their graded benefit plan.
It’s more expensive and not as strong but it still can pay a benefit.
As far as having no DI – maybe look for an employer that offers a group plan that you can have in the future.