In every profession, financial stability can change when a worker experiences an accident or injury. Unfortunately, the likelihood is greater for physicians, as the job’s responsibilities, such as working odd hours or exposure to illnesses, can lead to partial or complete disabilities. According to statistics, practicing physicians have a 3.1% of disability prevalence rate.
Therefore, you must ensure you are financially covered for all types of disabilities throughout your medical career. One of the best ways to certify this is by taking out a disability own occupation insurance policy. Read this blog to learn what it is and why it is important for physicians.
What is Own Occupation Disability Insurance?
Own Occupation Disability insurance is a policy provided by an independent insurance provider. Your employer will not offer you this insurance plan. This coverage allows you to keep earning if you have a serious medical situation (injury, illness, or pregnancy) that prevents you from performing your daily physician duties.
This disability insurance policy covers all the clauses that are not included in a standard health insurance plan. You also remain eligible to file a claim regardless of the hospital and medical institute you work at. You can even pursue another career if you are unable to perform a physician’s duties while still claiming the insurance benefits.
How Does Own Occupation Disability Insurance Work?
The policy turns into effect the moment you sign the contract. A standard own occupation disability insurance contract states that the company will offer you a monthly benefit if you become disabled. However, the final benefit amount depends on whether you are temporarily or permanently disabled.
A temporary or partial disability means that you can only perform a handful of your physician’s duties. For example, a knee injury can make it difficult to work long hospital shifts, but you can still check patients and create a treatment plan.
Meanwhile, a permanent or total disability indicates you are physically or mentally unable to practice in your medical field for the rest of your life. For example, acquiring a brain injury that makes it difficult to check and treat patients.
Benefits of Own Occupation Disability Insurance
An own occupation disability insurance plan offers multiple benefits to physicians, which are:
- An Inclusive Plan: Having a disability policy covers 60% to 65% amount of your after-tax salary, and you have to pay up to 5% of your income in premiums. Therefore, this disability insurance plan is more lenient.
- Coverage During Employee Switch: According to recent research, 1 in 5 doctors are expected to switch employers within 2 years. Unlike other insurance plans, the Own Occupation policy provides coverage even if you change employers.
- More Predictable: In own occupation policy, everything is written in the contract beforehand. So you know the total amount of benefits and coverage you will receive. In addition, you will learn beforehand what happens if the employer suddenly cancels the policy.
Own Occupation disability insurance provides financial coverage if you attain a temporary or permanent disability. It will help you maintain your lifestyle and pay your bills on time. Since working irregular hours as a physician makes you vulnerable to certain illnesses, make sure to subscribe to this insurance plan and attain financial security.
Liam Hayden has an MBA in Financial Management. With 5+ years of experience in the finance industry, I am passionate about topics such as budgeting, investing, insurance, credit, and taxes.