Disability Insurance Facts

Someone who is 35 years old has a 50 percent chance of disability for 90 days or more before they turn 65.

Upwards of 375,000 Americans become totally disabled every year.

Approximately one out of seven people who are between the ages 35–65 can expect to become disabled for five years or longer.

Almost 30 percent of the people who are between the ages 35 and 65 will experience a disability that lasts at least 90 days during their working careers.

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The Problem
In the last 10 minutes, 390 Americans became disabled.
- National Safety Council, 2001

In the home a fatal injury occurs every 16 minutes and a disabling injury every four seconds.
- National Safety Council, Injury Facts, 2004 Edition

There is a death caused by a motor vehicle crash every 12 minutes; there is a disabling injury every 13 seconds.
- National Safety Council, Injury Facts, 2003 Edition

Nobody wants to think about it, but you must take steps to protect your family and your future from what might happen if you become disabled and could not work.

If you are like most physicians, you currently have disability insurance. Whether it is an individual policy or a group contract through your employer, your income is likely protected to some degree.

However there are two distinct problems that physicians face with respect to their disability insurance.

Problem #1:
Arbitrary limitations on monthly benefit amounts imposed by disability insurance carriers over the past decade have left physicians significantly under insured. For many years, physicians were capped at a maximum monthly benefit of $10,000. Given current income and taking into consideration future earning capabilities, this capitation leaves physicians' incomes exposed and uninsured.

Additionally, many physicians covered by traditional Group Long-Term Disability ("LTD") contracts are unaware that any disability benefit actually paid to them will be subject to ordinary income taxes. This taxation reduces the net amount payable to the physician by a substantial sum.

Problem #2:
Disability insurance policies were designed to pay benefits for a relatively short period of time. The days of a "Lifetime" benefit period are over. Generally, the maximum benefit period is "To Age 65". The question is what happens on your 65th birthday? What will you do when your benefits stop?

The Solution