A rheumatologist told me this week that his AMA disability policy is a good plan because it covers a large group of physicians and the AMA used all that buying power to get the doctors a very good deal. Though he was content with the AMA plan, he asked me to take his policy certificate back to my office to review it. I have been very familiar with the plan for many years, but as I read over the documents afresh they still surprised me. The legal jargon leaves so many holes in the coverage that I really am surprised people are comfortable with it. Doctors on the plan have no idea how much risk they are taking with their income.
Most may be aware that as a group association plan, the AMA policy can be canceled and the premium rates can change. But the price is so low, they think nothing else can compete. That is like buying a car because it is cheaper than the other cars. An old VW Bug might cost $400 while a new Lexus might be $40k. The Lexus just can’t compete, right? Which one is going to always get you to work? Which one will get you across the country with no trouble at all? Which one would you want your kids in when it gets hit by another car at high speed? Would getting a group discount on an old VW Bug really solve your transportation needs?
The differences between the AMA disability plan and a high quality individual disability income policy really are as stark as the differences between an old VW and a new Lexus. One really is drastically safer and more reliable than the other.
If you are currently insured on the AMA plan or any other association plan, contact me and let me take a few minutes to show you just the basic differences. You will be surprised at what you have been driving around.