As a physician, you are probably approached frequently by insurance salespeople.  (Aren't you lucky!) There are many insurance policies on the market.  It is therefore important to be familiar with the benefits of the Disability Income Protection program endorsed by your County Medical Society and available in this area only to Society members, through Charles J. Sellers & Co., Inc.  This policy is underwritten by Life Insurance Company of Boston & New York (New Rochelle, New York).

First, a note about why Disability Income Protection is such an important part of any physician’s financial planning.
If you were unable to work because of an accident or an illness, how would you pay your bills?  How would you provide a college education for your children, or fund your retirement?  Unfortunately, disability is a real threat to all of us.  In fact, “over 51 million Americans are classified as disabled (18% of the population).”(U.S. Census Bureau, Public Information Office, November 2008).

Disability Income Protection helps you safeguard against this threat.  The Disability Income Protection program endorsed by your County Medical Society provides high quality protection, as follows:

1. Security of Renewal: With this program, your coverage will renew as long as you are a Physician under age 75, you are active in the profession, and your Medical Society sponsors this program. Further, there is a conversion option available if you leave the Medical Society or if the Medical Society sponsors another program. This policy is also portable and can be taken with you if you move.
   
   
2. Total Disability Coverage: Total Disability benefits are paid if you are unable to perform the substantial and material duties of your own occupation, so long as you are not performing the duties of any gainful occupation for which you are reasonably fitted by education, training, or experience. If your Occupation is limited to a recognized specialty within the scope of your degree or license, the Insurance Company will deem it to be your Occupation.
   
   For example, a surgeon is unable to do surgery because of an injury to his/her hand. This surgeon may be able to do some other work for which he/she is “reasonably fitted by education, training or experience” but he/she elects not to do so. This surgeon would be paid the full total disability benefits as per the policy. Even if this surgeon performed some of his/her duties or other duties for which he/she is “reasonably fitted by education, training or experience” then he/she would be entitled to Residual Disability Benefits (see #3 below).
   
   
3. Residual (Partial) Disability Coverage: The policy includes Residual Coverage to age 65. This pays a percentage of Total Disability benefits according to a loss of income formula, when you are unable to perform one or more of the substantial and material duties of your occupation, or you are unable to perform the substantial and material duties of your occupation for as much time as is normally required to perform them. A net income loss of 80% or more results in payment of full benefits. Unlike the residual benefit found in some disability programs, no prior period of Total Disability is required.
   
   
4. Amount of Coverage Available: When you purchase Disability Income Protection, you should try to purchase the maximum amount of coverage available, so that if you need it, your benefits will be sufficient. The amounts of coverage available in the County Medical Society endorsed program have recently been increased by the Insurance Company. Now, up to $15,000/month in coverage is available to physicians under age 50, and physicians age 50-59 may apply for up to $10,000/month. The amount of coverage that is available to you will depend upon your income, other coverage in force, and your health history. We have found that physicians are generally able to obtain higher levels of coverage from the County Medical Society endorsed program, based on the financial guidelines applicable to this program, than with other programs on the market.
   
   
5. Advantageous Optional Benefits: You can customize your Disability Income Protection policy to best suit your needs by adding optional benefits. For example, there is a Recovery Benefit option available, which pays a lump sum benefit upon return to work following a disability, to help with cash flow. A Cost of Living Adjustment (COLA) option is also available, which adjusts the monthly benefit after one year of disability based on the increase in the Consumer Price Index, with a 6% cap, up to two times the monthly benefit amount, to temper the effects of inflation. And, an option popular with younger physicians is the Guaranteed Purchase Option, which permits you to increase the monthly benefit by 25% of the original amount on the second, fourth, sixth, and eighth annual renewal dates of the policy, regardless of future medical insurability. This option is available to applicants under age 40.
   
   
6. Personalized, Local Service: Your Medical Society-endorsed Disability Income policy is issued and billed by Sellers & Co., located right here in Western New York. There’s no need to deal with a computerized telephone maze – our phones are answered in person and you will deal with a knowledgeable individual who can help you. Most importantly, in the event that you need to file a claim, that claim is processed by Sellers & Co., giving you personalized, local claim service that cannot be matched by other disability income policy carriers.
   
   
7. Reasonable Rates: Because of the group purchasing power of Society members, the rates for the Disability Income Protection program sponsored by your Society are lower than the rates of many comparable programs.
   

For all of these reasons, your Medical Society-endorsed Disability Income Protection program is a wise choice for protecting your income against the effects of disability.

Charles J. Sellers & Company, Inc. has been providing New York professionals and their families with insurance services since 1920.  For more information, please call our office at 716-627-5400 or at 1-800-333-5440 for outside the Buffalo area or email us at charles.sellers@sellersinsurance.com, and we would be happy to provide you with more information.