After years of education and training, you want to make sure that if you become disabled and cannot practice as a doctor, even in your specific field, you want to make sure that your income is protected. You really want to make sure that certain features are included in your individual disability insurance policy. Four features that you want to make sure are in your policy are as follows:

1. True Own-Occupation definition of total disability.
2. Recovery Benefit for the full benefit period
3. Cost of Living Adjustment Rider
4. Non-Cancelable and Guaranteed Renewable
5. Future Increase Option Rider

A true own-occupation definition of total disability is very important because it will consider you totally disabled if solely due to sickness or injury, you cannot perform the material and substantial duties of your occupation even if you choose to work in some other occupation. Some contracts also offer specialty specific language that state if your occupation is limited to the performance of the material and substantial duties of a single medical specialty, then that specialty will be deemed as your occupation.

If you are totally disabled, and you are able to work in another occupation, you may do so and still be eligible for your total disability benefits. Not every disability insurance policy will consider you totally disabled if you and continue your monthly benefits should you decide to work in another occupation. Be sure to read the definition of total disability carefully on all quotes and policies.

You should make sure that your policy has a Recovery Benefit feature. This feature helps support your financial recovery following a disability. Should you continue to suffer a loss of income, solely due to your injury or sickness, even after you have recovered and returned to work, you may be eligible to continue to receive residual benefits.

You can help guard against the effects of inflation while collecting benefits from a disability insurance policy by adding a Cost of Living Adjustment Rider. This type of rider will increase your policy's monthly benefit during a disability. There are various options with this rider, so check into them and determine what is best for you.

You need a Non-Cancelable and Guaranteed Renewable policy. This ensures that your premium rates and policy provisions cannot be changed by the insurance company as long as you pay your premiums on time. You are guaranteed to be able to renew your DI policy, each year until the policy expiration date, which is most commonly to age 65, without regard to any changes to your health, age and occupation.

Finally, it is very important for you to include a Future Increase Option (FIO) rider in your policy. An FIO rider will allow you to add more DI coverage later as your income increases. By including an FIO rider on your policy, you will have the opportunity to purchase more disability coverage regardless of any changes to your health. The increased coverage amount would be based on your then current financial situation and other disability insurance for which you are eligible or have in-force. When you are just starting out as a fellow or young doctor, your income is much lower now than it will be in the future. Therefore, you want to protect your potential future earning power now. You will be have the opportunity to add coverage in the future, even if you had a stroke, heart attack, became a diabetic, or so on.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 1355 Piccard Drive #380 Rockville, Maryland 20850. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (240) 683-9700. James Fegan, Financial Representative. The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian.
Financial Balance Group is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.