Disability Insurance for Doctors

Posted on July 11, 2012 and updated May 30, 2019 in Disability Insurance, Insurance Types, Life Insurance Canada News 3 min read

Doctors demand action

According to the Canadian government, there are 111,843 doctors working across the country. General practitioners and family physicians make an average of $79 an hour while specialists take in about $117 an hour.

In terms of disability insurance for doctors, there are many factors to consider. The following are three of the most important:

1. The Financial Strength and Reputability of the Insurance Company. Disability insurance is a promise to pay, so the insured wants to make sure that they’re dealing with a reputable company that is going to treat them fairly at the time of claim.

2. Definition of Disability. Disability policies generally have three types of definitions.

1. Any Occupation Under this definition, total disability means the inability to work at any occupation. Therefore, if the physician’s disability prevents them from performing their regular occupation duties, but they can still gainfully work as a checkout clerk, they will not receive a cent.

2. Regular Occupation Under this definition, total disability means the inability to work at his or her regular occupation due to an injury or an illness.

3. Own Occupation This is the gold standard definition. Under this definition, total disability is defined as the inability to work at your regular occupation, regardless of whether you can work in another gainful occupation.

All things being equal, the better the definition of disability, the higher the monthly premium. This makes sense because the insurance company has more of a likelihood of paying out a claim.

The problem with the “Any Occupation” definition found in many group disability plans is, there is a tremendous amount of grey area surrounding the insured’s ability to find employment at another occupation at the time of claim.

The third variable to consider is residual or partial disability benefits. Residual disability benefits, cover an insured person who experiences at least a 20% drop in earnings due to less than total disability. The monthly benefit amount is based on the percentage of lost income. Whereas partial disability insurance benefits are paid to an insured person who experiences a loss of time or duties as defined in their policy due to a partial disability, such as an injury that affects only one part of the body.

The insured is eligible for a flat percentage of their monthly benefit. (Generally, a maximum of 50%) The insured does not have to prove a loss of earnings to qualify for this benefit.

For more details on disability insurance for doctors, please contact us at 1-866-899-4849. Or visit our Disability Insurance Quote Page.

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