Even with some employees, small business owners can still be seen as single person operations. This is so because no matter how much you pay someone to help you manage, market, or produce items for your small business, no one is as invested in its success and revenue generation as you are. If you should become ill, injured or otherwise unable to work for medical reasons, you may no longer be able to contribute to the success of your business. This is why all small business owners must invest in both short- and long-term disability insurance KY policies.
As a medical resident or fellow, you are likely to be in practice for over 30+ years, and likely will also maintain your dis-ability income coverage that long as well. It is therefore critical to be certain that the policy you purchase provides high quality income protection. Below are three questions that young physicians should ask before purchasing a Disability insurance policy.
The factor of age is simple - every year you delay purchasing Dis-ability insurance will cost you about a 4% increase in premiums. In other words, the cost of coverage will increase by about 3-4% each year you wait. If a Dis-ability policy will cost $1,000 per year today, in three years your premium will likely be about $1,125. Since Dis-ability insurance can be designed to maintain a level premium for the duration of the policy life, it is beneficial to purchase coverage at a young age in order to secure a lower premium, for your entire professional career.
How is total disability defined in my policy? The definition of total dis-ability is one of the most important provisions for young physicians to review when purchasing dis-ability insurance. This is the provision that dictates the circumstances in which an insurer will consider a person as totally disabled at the time of claim. In today's market, there are two primary versions of this provision that young physicians should focus on.
Exclusions are used by insurers to remove a specific pre-existing medical condition from the disability contract. This means that you will not be covered in the case of a disability caused by the pre-existing condition or any complications that are a result of the pre-existing condition either. Although having a Dis-ability income policy with exclusions is still better than not having a dis-ability policy at all, most people prefer a policy without exclusions if at all possible.
Inflation can work against the value of your disability insurance payment. A cost-of-living adjustment, or COLA, added to your disability cover policy will adjust your benefits annually in order to keep pace with inflation.
You also get to determine your own limits when buying a D/I policy. You may not be able to get full income replacement from insurers but you may be able to replace up to 80 percent of your income. The closer you want your benefit to be in terms of your actual income, the higher your premium will be.
Although this may not seem important since you will still have D/I in either circumstance, the quality of each contract is significantly different. By this point you have spent nearly a decade, if not longer, training to become an attending in your specialty.
As a medical resident or fellow, you are likely to be in practice for over 30+ years, and likely will also maintain your dis-ability income coverage that long as well. It is therefore critical to be certain that the policy you purchase provides high quality income protection. Below are three questions that young physicians should ask before purchasing a Disability insurance policy.
The factor of age is simple - every year you delay purchasing Dis-ability insurance will cost you about a 4% increase in premiums. In other words, the cost of coverage will increase by about 3-4% each year you wait. If a Dis-ability policy will cost $1,000 per year today, in three years your premium will likely be about $1,125. Since Dis-ability insurance can be designed to maintain a level premium for the duration of the policy life, it is beneficial to purchase coverage at a young age in order to secure a lower premium, for your entire professional career.
How is total disability defined in my policy? The definition of total dis-ability is one of the most important provisions for young physicians to review when purchasing dis-ability insurance. This is the provision that dictates the circumstances in which an insurer will consider a person as totally disabled at the time of claim. In today's market, there are two primary versions of this provision that young physicians should focus on.
Exclusions are used by insurers to remove a specific pre-existing medical condition from the disability contract. This means that you will not be covered in the case of a disability caused by the pre-existing condition or any complications that are a result of the pre-existing condition either. Although having a Dis-ability income policy with exclusions is still better than not having a dis-ability policy at all, most people prefer a policy without exclusions if at all possible.
Inflation can work against the value of your disability insurance payment. A cost-of-living adjustment, or COLA, added to your disability cover policy will adjust your benefits annually in order to keep pace with inflation.
You also get to determine your own limits when buying a D/I policy. You may not be able to get full income replacement from insurers but you may be able to replace up to 80 percent of your income. The closer you want your benefit to be in terms of your actual income, the higher your premium will be.
Although this may not seem important since you will still have D/I in either circumstance, the quality of each contract is significantly different. By this point you have spent nearly a decade, if not longer, training to become an attending in your specialty.
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