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Disability Insurance Mistakes To Avoid

This week, I’d like to welcome Pattern for a sponsored post on disability insurance.  Here is some really good info: some common mistakes to avoid with disability insurance.

With so many options, getting disability or life insurance can be scary and stressful, which can lead to many mistakes.

In this post, we are going to go over some common mistakes physicians make when getting disability or life insurance, and ways to avoid those!

Top Disability Insurance Mistakes

1. Relying on an Employer Policy

One of the most common ways physicians get disability insurance is through their employer. While employer policies provide basic coverage, there are many issues with relying only on this policy for full coverage.

An employer or group policy is not as comprehensive as a private policy from one of the own-occupation “Big Six.”

It also has the following downsides:

Taxable benefits, so if and when you collect your benefit from your employer, you have to pay income taxes on it. This takes away a large portion of your benefit amount leaving you with way less than your take home income.

  1. Not own-occupation, which is the number one most important thing to pay attention to on your own policy. A non-own-occupation policy means if you are doing anything else, you will not get your full benefit. Read more on the importance of own-occupation here.

  2. Non-portable, so if you leave that employer, you can not take the policy with you because the employer owns the policy. 

  3. The employer owns the policy, so if they want to change, cancel, or modify it at any time they have the right to do so. Which could leave you with little or no coverage in the future.

A good way to avoid having the problems listed above, most physicians get disability insurance is through private companies.

There are many options and often doctors often choose the wrong policy because of lack of time to research or misinformation.

At Pattern, we are focused on education so that you have the knowledge and resources to make the best choice for you and your situation. By comparing all of the own-occupation insurance providers for you with one simple form, you can be sure that you have the best policy at the best price.

2. Not Having a True Own-Occupation Policy.

One of the most important things to confirm, before you decide on your policy, is if it is your own occupation. If you are a doctor and you are looking to protect your specific specialty and the duties you do on a daily or weekly basis, you have to have own-occupation coverage.

Essentially an own-occupation policy says that if you get disabled and you can’t perform your specific duties, but you can do some other job, they will continue paying you the full benefit.

If you don’t have that kind of coverage but are able to do any kind of job, such as working at a library, teaching, or anything else, you will find your benefit decreased. They may even stop paying you altogether.

There are some companies that claim to have own-occupation coverage that actually don’t.  The big sticking point is if you can do something else!

The “Big Six” companies or the six companies that have own-occupation coverage are Ameritas, Standard, Guardian, Principal, Mass Mutual, and Ohio National.

In order to avoid this, it is important when looking into policies through private companies, be sure that you are getting an own-occupation policy.

Getting Disability Insurance at Pattern

Getting insurance doesn’t have to be complicated! At Pattern, we focus on making sure you understand your options and have the right information to make the best choice and secure your financial future successfully.

If you are interested in getting disability insurance don’t hesitate to contact us. We are here to help you and we make sure this process is easy and simple.

To get started on your policy, click here!

I hope you got some good nuggets here and feel more confident about picking a policy as a result!

Stay frugal, y’all!


Standard Disclaimer:  Not meant as individualized financial or medical advice.  This is a sponsored post.            


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