Physician Disability Insurance—Why the Premium Disparity?

Sometimes shopping for physician individual disability insurance can be confusing when comparing individual disability insurance policies from multiple companies. This is especially confusing when you receive disability quotes with radically different premiums. Why the premium difference?

1)      First check your quotes for the correct occupational class. If the quote is radically different in price, chances are it is a mis-quote. I have often seen agents and brokers mistakenly quote physicians at the wrong occupational class. For example, I was recently working with a graduating medical resident/radiologist who received a quote from an agent who quoted him at an occupational class that was not even for physicians. This reduced the premium by about 40%! While it looked great to the radiologist, it was inaccurate and he would have found out after the application process started when the company fixed the error. This is the most common error which can result in substantial differences. Another occupational class difference is within specialties with subspecialties. For example, this radiologist was specializing in interventional radiology which most companies classify as a surgical specialty whereas diagnostic radiology is a nonsurgical specialty. The difference in premium between surgical and nonsurgical occupational classes is about 20%.

2)      Gender. Check to make sure that the agent or broker has your correct gender on the illustration! Female rates tend to be about 40% more expensive. If you are a woman and received a male quote, it may look a lot less expensive!

3)      Discounts. If your broker has access to special discounts, this can reduce the premium. This becomes even more significant with unisex rates, especially if you are a woman. These discounts can account for approximately 60% lower premiums!

As a physician or medical resident shopping for an individual disability insurance, it is imperative that you work with someone who specializes in this marketplace who can alleviate mistakes and guide you to find the most suitable product for your needs.

For more information about physician disability insurance, disability insurance for medical residents or to request a quote comparison, contact Set for Life Insurance today!