If you’re like many physicians, you probably purchased your disability insurance policy earlier in your career. At the time, you might have opted for a smaller benefit – because your income was lower, your family was smaller and the premiums were less expensive.
For that reason, your agent or broker might have recommended that you purchase a Future Increase Option (FIO).
This rider lets you start with a smaller policy, but provides the guaranteed option to add disability benefits to your plan in the future. So as your career and income grow, your benefit can be more in line with your family’s current living expenses and lifestyle.
Whether or not you have taken advantage of that provision, every time you pay your premium you are paying the cost of having that option in your plan.
What Should You Do Now?
You may have forgotten that your plan includes an FIO. But it’s important to be aware of it today for many reasons.
The FIO guarantees that you can add more coverage – without having to re-apply or take a medical exam. That’s an advantage, since you are older now and have a higher risk of health issues, especially during this time of COVID-19.
Also, the FIO comes with an expiration date – usually when you reach 40 or 45 years of age. So you’ll want to act before your option expires.
A Review Can Result in Savings
Typically, the agent who sold you the policy would reach out to remind you about the FIO that you are continuing to pay for. (If you obtained your policy through TMA Insurance Trust, it is our standard practice to reach out with reminders about your FIO.)
If you’ve lost touch with your agent, feel free to contact a TMA Insurance Trust advisor for a no-cost policy review.
You’ll want to know if you are paying for provisions in your policy that you don’t plan to use. We can point those out to you. We may also be able to suggest cost-saving adjustments – like changing your waiting period, or the amount of your benefit.
What if You Have an FIO?
It’s possible you may have already explored your FIO, in which case you might have learned that while an FIO guarantees your option to purchase additional coverage, you do have to pay an additional premium – and that will be at a higher rate for your current age.
If you feel it is too expensive to add more coverage with your FIO, our advisors can suggest a cost-effective alternative. You may be able to increase your coverage with a supplemental disability plan.
Save With Supplemental Coverage
If your income has increased – and you feel you need more disability coverage – you can find affordable, supplemental coverage with the TMA Member Long Term Disability Plan issued by The Prudential Insurance Company of America. It is available exclusively to TMA members and now comes with up to 25% savings off our regular rates.*
Even if your plan does not include an FIO, if you want more disability coverage, this could be a cost-saving option to consider.
Schedule Your No-Cost Review Now
Whether or not you have an FIO – it’s a good idea to review your disability plan periodically. Your life is different today than it was when you originally obtained your policy.
Call us now to be sure you are properly protected and getting the full value out of what you are paying for. Our advisors do not work for sales-based commissions so you will always get an unbiased, no-obligation review. Call us now at 1-800-881-8080.
For over 60 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.