Disability Insurance Broker Discusses Group Disability Insurance
As an experienced Disability Insurance Broker for Physicians and Dentists, I often receive questions about group disability insurance. Group disability insurance is a function of employment. As such, if you’re an employee with a company, practice, hospital, or university, they’re going to provide a basic group disability benefit that will provide protection while you’re there. It’s extremely important though, to look at the definitions that they have in the policy and the other provisions.
You also want to know if that policy premium is being paid by your employer or if you’re paying something towards it. This will determine what part of the benefit is taxable. In most cases, the entire benefit is taxable because it is provided by the employer as a benefit.
Additionally, you will want to look to see if it has a cap or a maximum. It is typically 60% of pay or salary up to a maximum of $5,000 or $10,000, which may not be the same 60%, especially for highly compensated individuals. The other thing you want to look for is does it cover your total income including bonuses and incentives or is it just covering salary.
If you are a physician or dentist and have questions about group disability insurance, contact our professional Disability Insurance Brokers for guidance. Let our experience work for you.
This educational blog was brought to you by dedicated Disability Insurance Broker Michael J. Bruno, seasoned Chartered Financial Consultant, Chartered Life Underwriter and Registered Health Underwriter. Specializing in financial planning and disability insurance for physicians and dentists for over 30 years.