How to Compare Disability Insurance Quotes Like a Pro

Long-term disability insurance policies come in many flavors that vary based on the insurance company and the individual policyholder. As a physician or other specialty professional, it’s crucial you take the time to compare policy options to understand how your coverage and benefits might differ. Plus, doing a disability insurance quote comparison can ensure you’re getting the best coverage at an affordable rate.

How to quickly get multiple disability insurance quotes for comparison

When shopping around for disability insurance, you can get quotes from several sources. For example, you can check with professional associations like the American Medical Association (AMA) for discounted coverage. However, these group plans often have limited disability insurance benefits and premiums that can change over time.

The fastest way to get multiple disability quotes for easy comparison is to work with an independent insurance broker. Unlike an insurance agent who works for a single company, an independent broker shops multiple providers to find you the best rate and coverage.

An experienced independent insurance broker will:

• Search the “Big 5” disability insurance companies that are known for own-occupation coverage. This includes Guardian, MassMutual, Ameritas, Principal and The Standard.
• Know which insurance carriers might treat your pre-existing condition more favorably.
• Be aware of premium discounts based on your situation, which can range from 5% to 45% depending on your gender, occupation, state of residence, insurance carrier and other factors.

To get a quick quote for own-occupation coverage with the best discounts, fill out the form below.

What you need to know before starting the disability insurance quote comparison process

Disability insurance quotes are calculated using several primary factors — such as age, gender, occupation and medical history — to determine premium rates. But before you can nail down how much disability insurance will cost, you’ll need to be prepared to provide detailed information as part of the quote process. 

For example, here’s some of the information SLP Insurance requests to start shopping for the best disability insurance quote:

• Personal information: Name, date of birth, gender, state of residence, country of citizenship or visa type.
• Work information: Name of employer, medical or dental specialty and details related to your residency or fellowship.
• Financial information: Annual income (include any bonuses or K1 income) and student loan balance.
• Medical history: Height, weight, prior or current medical conditions, prescription medications, etc.

Providing this basic information up-front gives the insurance broker a jumping off point to determine coverage options and available discounts.

Disability insurance quote comparison: Key factors

One of the most important comparison factors is obviously going to be cost. But you have to look beyond the dollar signs to understand how and why the policies differ to ensure you have adequate coverage for each stage of your career.

1. The cost of coverage

The cost of disability insurance varies just as much as the policies themselves. Here are several things to keep in mind when comparing disability insurance coverage:

• Group coverage is generally going to be less expensive than an individual policy, but that doesn’t make it better. However, employer-sponsored group plans typically have a broad definition of disability and limited benefits, providing you with significantly less coverage. But they’re generally free as part of an employee benefits package. In contrast, group coverage via an association disability plan usually comes with an increasing rate structure, making it more expensive as you get older. Whereas an individual disability insurance policy provides comprehensive coverage with locked in rates.
• The younger you are, the lower your disability insurance cost. As a general rule of thumb, you’ll receive the best rates when you’re at your youngest and healthiest stage of life. Therefore, putting off buying disability insurance until later in your career can be costly. Even if you’re a resident on limited income, you can purchase a small policy now with the option to increase coverage later when you have an attending salary.
• Discounts are available to make coverage more affordable. This is one of the primary benefits of working with a knowledgeable independent insurance broker. Some brokers will share discounts, and some have discounts exclusive to the broker — as is the case with SLP Insurance.

Costs can vary widely for similar coverage, so it’s best to do a thorough disability insurance quote comparison to find the right fit and the best deal.

2. The definition of disability

The definition of disability can make or break a policy claim. So, doctors and dentists need to pay careful attention to the definition of disability when comparing disability insurance quotes.

A standard any-occupation definition of disability makes it a lot more difficult to qualify for disability benefits since you’ll need to prove you’re unable to work in a suitable job. Note that the keyword is suitable, not comparable. So, let’s say you can’t stand for long procedures due to a back injury. But you can still work a $50,000 desk job. You wouldn’t qualify for disability income under an any-occupation definition of disability.

Whereas a true own-occupation definition of disability provides the strongest income protection. It allows you to collect benefits if you’re unable to perform the essential duties of your medical or dental income. Plus, you’ll have the option to earn income from another job while receiving disability income.

That said, there are other variations of own-occupation coverage that might limit your ability to work while collecting benefits — further emphasizing the point that you need to understand the definition of disability to know how any claim for benefits might be judged.

3. Additional policy riders available

Here’s where an individual policy can really be tailored to your needs. Each insurance carrier offers various policy riders, which serve as optional add-ons to expand coverage. Some optional riders are offered at no-cost. However, many cause your premiums to increase, so you shouldn’t load up your policy with extras just because they’re available. Instead, focus on riders that actually serve you, such as:

• Future purchase option (FPO): Great for residents and fellows who haven’t reached their full earning potential as it allows you to increase your benefit amount without an additional medical exam.
• Partial disability benefits: Allows you to receive residual disability benefits if you aren’t totally disabled but still have a loss of income due to a long-term injury or illness.
• Catastrophic benefits: Pays an additional monthly benefit if your disability prevents you from performing basic living activities independently, such as bathing, dressing, eating, etc.

Another disability rider that might make sense depending on your situation is the cost-of-living adjustment. However, most physicians are better off buying a larger base benefit instead due to its cost. The same applies for student loan protection and retirement protection riders.

Is it time to call a disability insurance agent?

This article only scratches the surface of the many decisions that must be made when choosing a long-term disability policy. You’ll also need to choose your preferred policy structure, including the elimination period (how long you must wait to receive benefits) and the benefit period (how long you receive benefits). Plus, you’ll need to choose a monthly benefit amount that makes sense in tandem with your existing disability coverage.

Although the policy itself and the cost of the policy are the main criteria for choosing disability coverage, you’ll also want to consider other areas of doing business with that company. Does it have strong financial ratings? What do other customers have to say about their customer service? Does it receive excessive complaints about the claims process?

That said, most policyholders reach out to their insurance broker or agent when they have questions about their policy or a claim. You want to work with someone you feel comfortable with who doesn’t give off a “one-and-done” vibe.

SLP Insurance can help fast-track your disability insurance quote comparison process by searching the “Big 5” to present you with the best coverage options and discounts. Fill out the form to get started, and our team will reach out with first steps.