In case you become disabled and find yourself unable to work, how would you look after your family? Most disabilities are temporarily brought on by injuries or illness. But some can be long-term and you may not be able to work for a really long time, or maybe never at all. This is when you need to look at disability insurance solutions to cover this risk.
Disability insurance policies are designed based on a key philosophy; to protect you against financial losses when there is an emergency. However, there may be times when such a policy is unable to do this. For instance, when there is a long-term disability, you may find that the policy you have does not perform up to your expectations. This happens because supplemental disability insurance and group long-term disability may have limits.
If you have not heard about high limits disability coverage till now, it is probably because brokers often sell this as “executive disability”. The idea was to resolve the inadequacies triggered because of limitations of conventional disability coverage. High limit disability insurance is ideally suited for larger corporations and firms having highly-compensated workers. This is for people whose incomes are outside the range of a company’s group disability plan. This is why doctors and healthcare professionals need to know about HLDI (high limit disability insurance).
Group long term disability coverage can provide to the tune of $120,000-$240,000 earnings protection annually. Some companies offer extra individual disability policies for workers whose income surpasses such limits, but all individual policies will have limits. These cannot cover bonus and equity which make up a big portion of any executive’s salary these days. The only insurance product which effectively covers all the elements of this highly-compensated individual is HLDI since it can be customized for every company. It will take into account bonus income, base salary, equity grants, etc.
So, disability companies now push for high limit disability insurance that can be a game-changer. These policies offer high flexibility, providing both lump sums and monthly benefits for augmenting existing plans that may be inadequate. Healthcare professionals earn sizeable incomes because of years of education and experience. But, when they suffer from an unexpected illness or get injured they may not be able to practice their specialty. It is at these times that they need disability benefits that are commensurate with their expenses. This is needed to make sure that their savings and investments remain untouched and their family’s future isn’t at risk.
Traditional policies will be able to insure only about 60%-70% of your income but some plans have limited benefits. When the income goes up, the amount of income covered actually gets cut down because of plan limitations. Incidentally, some disability plans have such low caps that disability payments can actually leave doctors with an almost 75% deficit in earnings. So, if you are a doctor, reach out to program managers at https://www.mgis.com. They have tie-ups with the best insurance brokers to give you the most comprehensive specialty coverage and disability insurance you can think of.