It is often strongly recommended by experienced physicians that newly practicing physicians obtain a disability insurance policy as soon as possible. Establishing this coverage early in one's career is essential for safeguarding their income.
As years pass and your salary and income grow, your disability insurance coverage needs to keep pace or you could face risks to your financial stability. The policy you started your career with may not sufficiently protect your current income.
Maximize Your Coverage Affordably
One of the best strategies for increasing your income protection is not to replace your current disability policy but to supplement it by adding another policy. This is often the most affordable approach.
You likely secured your current disability coverage when you were younger and perhaps healthier. If you were to replace it now, it would cost you more. Utilizing an insurance policy strategy known as “stacking” or “laddering” - which refers to owning multiple policies - could help you get the most comprehensive disability coverage at the lowest possible cost.
Why “stacking” makes sense:
- Disability insurance carriers have a maximum monthly benefit they will pay.
- Carriers also stipulate in their policies a maximum monthly benefit amount that can be collected from all disability insurance policies the insured has.
- Multiple policies will allow the physician to get the maximum monthly benefit allowed should he/she become disabled.
For example, if a physician has a policy that will pay a monthly benefit of $10,000 a month, but the policy will allow them to receive a maximum monthly benefit of $30,000 or $35,000 between multiple policies, it gives the physician the flexibility to obtain another policy that can be coordinated with their existing policy.
Are you just beginning your career and purchasing disability insurance for the first time? This “stacking” strategy can be a way to secure more comprehensive coverage right from the start. Consider purchasing an individual policy with a longer waiting period that covers you through retirement; this will help drive down the cost of that policy. Then, “stack” the affordable TMA member plan with a shorter waiting period that would provide benefits before the individual policy begins paying benefits. This approach will help you receive coordinated, comprehensive benefits more affordably. For example, members can apply for up to $5,000 of coverage with the TMA Member Long Term Disability plan, issued by The Prudential Insurance Company of America. This coverage is available regardless of any other disability coverage they may have through another carrier and with no income verification required.
A Future Increase Option should be considered with this strategy. Up to a certain age, this option will allow you to increase your coverage as your income and financial responsibilities increase, without being subject to underwriting. Even if your health changes in the future, you can exercise your opportunity to secure more coverage, and not be saddled with significant cost increases due to changes in health or be denied coverage outright.
How Much of Your Income is Unprotected?
To know how much supplemental disability coverage to secure, first, you need to calculate how much of your current income is unprotected. TMA Insurance Trust makes this easy and convenient with our Unprotected Income Calculator. It can help you understand how much of your income is currently unprotected through retirement, and our knowledgeable advisors can then help you find the supplemental coverage that will maximize your benefits.
For decades, TMA Insurance Trust advisors have been offering their product knowledge, developing strategies, and offering assistance at no cost to Texas physicians so they can get the income protection they need and deserve. We work with leading disability insurance carriers to provide the best solutions for your insurance needs, some with discounts and savings.
Maximize your income protection by calling 800-880-8181, Monday through Friday from 8:00 am to 5:00 pm, CST.
For over 65 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.
