Even with some employees, small business owners can still be seen as single person operations. This is so because no matter how much you pay someone to help you manage, market, or produce items for your small business, no one is as invested in its success and revenue generation as you are. If you should become ill, injured or otherwise unable to work for medical reasons, you may no longer be able to contribute to the success of your business. This is why all small business owners must invest in both short- and long-term disability insurance KY policies.
Many individuals take for granted that Social Security dis-ability benefits will be paid to them when they are no longer able to work and earn a paycheck for their small business, however, this is not generally the case. It is notoriously difficult to get the Social Security Administration (SSA) to approve your application for dis-ability benefits. In addition, when relying exclusively on Social Security, you are subject to their definition of dis-ability, their waiting period and their benefit limits.
Can the provisions or price of my disability insurance policy change in the future? The response to this question can be answered by reviewing the renewability provision of a dis-ability policy. As a young physician, it is best to obtain a policy whose provisions and pricing cannot be changed in the future. In order to achieve this goal, medical residents must obtain a disability insurance policy that is non-cancellable and guaranteed renewable. This will guarantee that the insurer cannot cancel the policy, increase the premiums or change the provisions so long as the premiums are paid on time.
How is total disability defined in my policy? The definition of total dis-ability is one of the most important provisions for young physicians to review when purchasing dis-ability insurance. This is the provision that dictates the circumstances in which an insurer will consider a person as totally disabled at the time of claim. In today's market, there are two primary versions of this provision that young physicians should focus on.
Another concern when you rely on Social Security is not only will you have to wait for your application to be approved but you must also go through the SSA's waiting period of five months before benefit payments begin. When you buy your own dis-ability policy, you can determine what waiting period you're comfortable with. The longer your waiting period, the lower your premium will be as a long waiting period reduces the overall amount that the disability policy cover must pay out.
A third reason why residents should consider purchasing D/I during medical residency is in relation to the quality of coverage available on an individual basis versus that available with group coverage. Although it may be your good intention to purchase individual Dis-ability insurance once you leave residency and become an attending, you may no longer qualify for as much individual Dis-ability insurance as during residency.
You also get to determine your own limits when buying a D/I policy. You may not be able to get full income replacement from insurers but you may be able to replace up to 80 percent of your income. The closer you want your benefit to be in terms of your actual income, the higher your premium will be.
Another benefit you can add to your D/I policy is guaranteed insurability benefits. This will allow you to add additional insurance amounts without going through underwriting again as this benefit guarantees your continued insurability. That means as your small business income goes up, you can mirror that increase through your disability insurance policy without worrying about how your health or age might affect your rates.
Many individuals take for granted that Social Security dis-ability benefits will be paid to them when they are no longer able to work and earn a paycheck for their small business, however, this is not generally the case. It is notoriously difficult to get the Social Security Administration (SSA) to approve your application for dis-ability benefits. In addition, when relying exclusively on Social Security, you are subject to their definition of dis-ability, their waiting period and their benefit limits.
Can the provisions or price of my disability insurance policy change in the future? The response to this question can be answered by reviewing the renewability provision of a dis-ability policy. As a young physician, it is best to obtain a policy whose provisions and pricing cannot be changed in the future. In order to achieve this goal, medical residents must obtain a disability insurance policy that is non-cancellable and guaranteed renewable. This will guarantee that the insurer cannot cancel the policy, increase the premiums or change the provisions so long as the premiums are paid on time.
How is total disability defined in my policy? The definition of total dis-ability is one of the most important provisions for young physicians to review when purchasing dis-ability insurance. This is the provision that dictates the circumstances in which an insurer will consider a person as totally disabled at the time of claim. In today's market, there are two primary versions of this provision that young physicians should focus on.
Another concern when you rely on Social Security is not only will you have to wait for your application to be approved but you must also go through the SSA's waiting period of five months before benefit payments begin. When you buy your own dis-ability policy, you can determine what waiting period you're comfortable with. The longer your waiting period, the lower your premium will be as a long waiting period reduces the overall amount that the disability policy cover must pay out.
A third reason why residents should consider purchasing D/I during medical residency is in relation to the quality of coverage available on an individual basis versus that available with group coverage. Although it may be your good intention to purchase individual Dis-ability insurance once you leave residency and become an attending, you may no longer qualify for as much individual Dis-ability insurance as during residency.
You also get to determine your own limits when buying a D/I policy. You may not be able to get full income replacement from insurers but you may be able to replace up to 80 percent of your income. The closer you want your benefit to be in terms of your actual income, the higher your premium will be.
Another benefit you can add to your D/I policy is guaranteed insurability benefits. This will allow you to add additional insurance amounts without going through underwriting again as this benefit guarantees your continued insurability. That means as your small business income goes up, you can mirror that increase through your disability insurance policy without worrying about how your health or age might affect your rates.
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