Posted on: October 7, 2016 by Chuck Krugh, CFP
Thousands of practicing dentists across the country got some bad news from their disability insurance company last spring: Their affiliated disability insurance company, Great West Life, announced a significant rate increase effective May 1st. Premiums for men increased by about 16 percent, while female dentists were hit even harder, with a premium increase of up to 21 percent.
If you are still in good health, and you have not held the original policy for too many years, it may be time to review your options. While the ADA disability insurance plan used to be extremely competitively priced, it is not as competitive after the recent round of insurance premium increases. This is particularly true after a couple of five-year hikes.
Give us a call today to arrange a free, no obligation consultation. Often times, we are able to improve on the program offered under the American Dental Association, and sometimes at significant savings.
Why? In addition to the big premium increase this year, dentists enrolled as beneficiaries of the ADA’s disability insurance program do not directly own their policies. Great Western’s contract is between them and the ADA. You don’t own the policy directly.
This means that the ADA and Great Western can make changes to their disability program at any time, without your consent or approval.
Furthermore, under the ADA’s current program, the future increase benefit is comparatively limited. If you want more than $5,000 in increases, you have to go through underwriting. There are other carriers available that provide more flexibility.
Additionally, in order to keep your coverage in place, you have to maintain your membership in the American Dental Association. Not every dentist wants to do this – particularly as they enter more mature phases of their careers.
Usually, it’s a good idea to take a comprehensive look at your insurance coverage situation any time an insurer hits you with a rate hike. Often, we are able to find clients monthly savings on premiums, help them identify redundant or unneeded policies, or find better coverage with more appropriate riders and additional protections. For example, some clients want or need Catastrophic Disability Benefits, which provide additional benefits if the insured cannot perform two out of the six activities of daily living (ADLs), or is cognitively impaired. This coverage is not available under the ADA plan, nor is an automatic increase benefit that increases the basic monthly benefit for a number of years after the policy is purchased regardless if you have an increase in your income or not.
At DoctorDisability.com, we work exclusively with physicians and their families, and have done so for years. As a result, we keep a very close eye on developments within the medical insurance market. And we represent all the major carriers competing in this market, particularly with regard to ‘own occupation’ policies.
To schedule a no obligation consultation with one of our experienced advisors, call us today at 866-899-7318.
We look forward to working with you.