No physician likes to think that a serious illness or tragedy could happen to them at any moment. But if it does, a greater tragedy would be not being prepared. Your livelihood may be affected if you are too sick or injured to practice and your income stops.
We have made it easy for you to get started by debunking five of the most common myths physicians have about disability insurance.
Myth #1: I am careful and will not need disability insurance coverage.
Truth: As we saw in the recent pandemic, even the most cautious of individuals can fall victim to an unforeseen occurrence. In fact, 88% of all long-term disabilities are caused by illness - not injury or catastrophic accidents.¹
Myth #2: Disability Insurance is too expensive.
Truth What are you willing to risk? If you consider what would happen if you are unable to practice and earn an income due to a serious illness or injury, the cost of a policy could pale in comparison to your income exposure risk.
To assess your financial exposure, the first step is to calculate your earning potential over your career. Physicians can use our Unprotected Income Calculator so that you may help protect as much of your income as possible.
Myth #3: The disability insurance I have through my employer is enough.
Truth: Disability coverage provided by your employer replaces only about 60% of your salary².
- That means for every $100,000 of salary, $40,000 will not be replaced. And no benefits will be paid for any salary over $200,000.
- Your employer imposes a cap on how much of a benefit you can receive every month – typically $10,000.
- You will not receive any income benefits for the uncovered portion of your salary.
- If your employer pays the premiums, your benefits may be taxed as income, further reducing your income.
- Your employer may also limit the length of time you are able to collect a benefit.
- Bonuses are not covered.
When you secure your own coverage, you have more control over your plan, and benefits. And if you pay the premiums out of personal income and not as a business expense of your practice, your benefits will not be taxed as income.
Myth #4: I am young and healthy, I’m not going to worry about this right now.
- The best time to secure a plan is when you are young and healthy. You will get the lowest possible rate in your lifetime and the savings you lock in will allow you to buy more years of income protection.
- Diseases don't discriminate. They strike young and old alike. Rheumatoid arthritis, severe depression, Huntington’s Disease and MS tend to occur before age 45.
- Starting a family? Women are more likely to become disabled due to complications during pregnancy.
We recommend all physicians secure disability and life insurance coverage as part of their plan to protect themselves and their growing family. Yes, getting this coverage while you are young has many benefits:
- You will pay less over your career than if you wait and buy your policy when you are older and potentially less healthy.
- You will get more years of income protection.
Myth #5: I have personal savings, I don’t need disability insurance.
Truth: Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months' worth of living expenses. In comparison, did you know that the average long term individual disability claim is 31.6 months?³
A serious illness or injury could deplete your savings faster than you anticipate. Attaining immediate goals like paying off education loans, launching your own practice, or long-term goals like retirement, could be virtually unreachable.
Help Protect your Income with Disability Insurance
Whether you are a young physician or established in your career, the experienced advisors at TMA Insurance Trust are ready to help you “demythify” disability insurance coverage. The advisors do not receive sales-based commissions, so their guidance and recommendations are provided without bias to assist you in finding the right disability coverage you need to help protect your income. Call today at 800-880-8181, Monday through Friday from 8:00 am to 5:00 pm, CST. Or apply anytime online by clicking the button below:
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.