Recently graduated veterinarians need to take a disability insurance policy to cover lost income caused by disability or chronic illness. The disability insurance for recently graduated veterinarians will pay a monthly benefit to the policyholder to cater for daily expenses. It helps new veterinarians remain financially stable by covering medical care expenses and utility bills. Here’s what you should know about disability insurance when starting your own veterinary practice:
Understanding the Basics of Disability Insurance
Disability insurance helps protect the recently graduated veterinarians’ income and the resources they invested in their careers. It provides financial protection for veterinarians unable to work by replacing a large fraction of their income. This means that as a veterinarian, you will be able to recover without having to use your savings. In case you are unable to recover from the disability, long-term disability insurance caters to your financial needs. The payouts and benefits from the disability insurances are often tax-exempt, which provides financial relief for disabled veterinarians. Disability insurances gives you a safety net because it covers most disabling conditions. Whether you are permanently or temporarily disabled, you will have a regular flow of income to pay for normal expenses.
Types of Disability Insurance
Disability insurance for recently graduated veterinarians comes as either short-term or long-term coverage. Short-term coverage caters to loss of income due to a disability or injury for a short time period. Short-term disability insurance also provides payouts immediately after an accident that caused the disability. Long-term disability insurance covers a veterinarian’s entire benefit period, which extends to one’s retirement age, depending on the policy. Long-term disability insurance provides payouts once the short-term period ends and the veterinarian is still unable to work.
Both short-term and long-term have an own-occupation or any-occupation policy. Own-occupation policy allows the policyholder to receive benefits if they are unable to work in their veterinary profession, even if they can work in other professions. An any-occupation policy means that the policyholder can only receive benefits if unable to work in any occupation. The chosen policy should be able to meet your needs when you are without income.
Policy Elimination Period
Disability insurance comes with a specific elimination period, which defines the waiting time before you receive benefits after becoming disabled. Longer elimination periods require lower premiums, while shorter elimination periods require higher premiums. Make sure you choose an elimination period that aligns with your financial needs while paying attention to the premium amounts. The length of the elimination period should allow you to live comfortably without income and benefits. If you have sufficient income savings to cater for your expenses, opt for a longer elimination period with lower premiums.
Benefit Amount and Duration
Different disability insurances policies for veterinarians come with different payout amounts. A veterinarian needs to determine the amount of income to be covered and choose a policy with a matching payout. The veterinarian should also choose a benefit duration that covers the time they will be unable to work. The benefit period should offer you adequate protection for the whole period you become disabled.
How Much Disability Insurance You Need
While starting your veterinary practice, you need disability insurances that can adequately cater to your financial needs. Good disability insurance should be able to cater to your income. If you have alternative investments that can cater to your financial needs when disabled, choose a smaller coverage amount. A lower coverage amount attracts smaller premium charges.
You can also include insurance riders for added protection if your policy lacks the specific benefits you need. Some of the riders you can include in your disability insurances include a future increase option, partial coverage, and a non-cancelable option. The future increase add-on allows you to get extra coverage later without applying for a new policy. With the partial disability coverage option, you can get income loss protection even if you can still work while disabled. The non-cancelable option prohibits the insurer from increasing your rates or canceling your policy as long as you pay premiums.
Get Your Disability Insurance for Recently Graduated Veterinarians
Find a quality insurance provider to help you obtain the proper disability coverage. Getting insurance coverage early allows you to continue paying the lower premiums for your coverage throughout your entire career. Contact an experienced provider of disability insurances for veterinarians today and choose a policy matching your financial needs.
