The Cost v Benefit of a Shorter Waiting Period on Your Physician Disability Insurance Policy
Updated: Sep 16, 2020
How can you get a shorter waiting period without paying a higher premium on your physician disability insurance policy?
Most people don’t realize what a valuable benefit this particular policy is until they do some math. One scenario saves a physician 80%!
Most doctors choose to go with a waiting period of 90 days to receive their claim benefits. This is because it usually provides the best balance of cost vs benefit. A shorter waiting period would be nice, but it increases the premium drastically. For example, one leading insurer charges about 80% more for a 60 day wait than for a 90 day wait. So it usually isn’t worth the extra cost.
But one popular policy actually includes a benefit that reduces the waiting period at no extra cost. For every year you do not make a claim, they will reduce the waiting period by 2 days.
Most people don’t realize what a valuable benefit this is until they do some math. It’s an especially valuable benefit for young professionals. Consider a doctor who signs up when he is 30. By age 45, his 90 day waiting period will have been reduced to 60 days, but he will still be paying the much lower 90 day price – and all locked in at the age 30 rates. That sure beats paying 80% more!
Curious to see how you can benefit from this policy? Contact us today and let our 20+ years of experience help you.