Story at-a-glance
- Most physicians have disability insurance—but many rely too heavily on group plans like AMA, which come with serious limitations.
- AMA policies can be changed or canceled at any time, offer limited partial benefits, and often increase in cost every five years.
- Individual disability insurance provides stronger, more stable protection, including fixed premiums, specialty-specific coverage, and policy ownership.
- Progressive illnesses or partial disabilities may not be covered well under AMA plans, leaving high-earning doctors at risk of income loss.
- Upgrading to an individual policy offers long-term peace of mind, customizable benefits, and protection you can count on at claim time.
The good news is that, as a group, physicians seem to take the real threat of incurring a disability to heart. According to a 2007 survey by the McGill Advisory, nearly 100 percent of the physicians surveyed said they were covered by some form of disability insurance. The bad news, also revealed in the survey, is that, long after residency and well into their careers, many physicians continue to rely heavily, if not solely on their group plans such as AMA disability insurance.
There may be a number of reasons for not purchasing individual disability insurance – cost issues, too busy with other priorities, lack of knowledge, or simply dismissing the risk – however, the net effect is these physicians are leaving themselves dangerously exposed for a risk with a 20 percent probability.
It's Important to Weigh Your Options
This is, by no means, a slight against AMA disability insurance plans. They fill a very important role as a temporary means to obtain disability insurance coverage, or as a way to augment an individual disability policy. However, an over reliance on group disability coverage for protecting their most valuable asset, is akin to relying on a homeowners policy to protect a valuable piece of art – the level of protection will fall way short. Of course, most people can do without a valuable piece of art, but very few can do without income.
AMA Disability Insurance vs. Individual Disability Insurance
A quick comparison of the coverage provided by the AMA and that which is typical of most individual disability insurance policies highlights the gaps in coverage:
AMA
Individual
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To see how easy and affordable it is to protect your income with a quality individual disability coverage, simply click the button below and request a free quote comparison today.
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