Disability & Life Insurance
Clear and simple — insurance for everyone, ready-made for doctors.
Learn more about our insurance options
Protection with Doctors in Mind
Disability and Life Insurance are two of the cornerstones when it comes to doctors and their personal umbrella of coverage. Panacea takes a new approach to educating doctors in the world of policy. No insurance-jargon filled sales pitch, no steak dinner – just an experience-based conversation to help you understand what you need, and what you don’t.
We’ll walk you through what you need as medical student, resident or a practicing doc; if and how your current group policy can be improved upon; and ensure protection of your most important asset, your ability to earn an income.
How It Works
Those steak dinners don’t cover disability the way it should. As a foundational piece of your financial protection, we’ll talk about it from an experience-based perspective and create a custom plan built for you as an aspiring, new or experienced doctor.
Insurance Expert: Spencer Mathews
Spencer is a licensed life and health insurance agent who works for our partner, JTS Financial.
Who am I? Just the husband of an orthopaedic foot and ankle surgeon who’s been through the ringer of medical school, residency, fellowship and the start of a practice – but I also know a bit about Insurance.
I have 10 years of industry experience, along with the knowledge that comes from my wife’s venture of becoming a doctor (we’ve got the student loans to prove it). I’m very familiar with and admire the route to practicing medicine, but also know full-well the financial challenges you’re facing as doctors. I’ll guide you through what these protections are and help you make the best decision for you – from an experience-based position.
Insurance Products are:
I already have disability insurance with my group, why would I need an individual policy?
Most group disability plans are not portable, meaning you cannot take the same plan at the same premium and benefit if you leave your group. Everyone’s situation is different, but it’s wise for physicians <55 years old to have a baseline individual disability with the appropriate riders should changes arise.
I have a lot of student loan debt, does this help pay for those loans if I become disabled?
Most importantly, disability is designed to replace income which pays debt, so yes. However, there are a couple premier carriers who have riders that pay you an additional amount (over your base disability benefit) designed to help pay down your debt.
I’m young and healthy, why would I need disability right now?
Now is the perfect time to get a disability plan as a young and healthy person. This is the time that your rate will be the lowest and qualification the easiest. If you wait until your health situation changes, it could be too late in that you can no longer practice medicine and don’t have the disability in place or you can no longer qualify. Pre-existing conditions on individual disability do affect your qualification.
I’m a resident/medical student. I don’t think I can afford a disability policy right now.
We, through experience, fully understand the financial life of a resident and medical student, which is why we have customized plans designed specifically for your situation. Something to get you started that provides ample coverage without the high costs.
I already have life insurance with my group, why would I need more life insurance?
Most group disability plans are not portable, meaning you cannot take the same death benefit and premium with you if you leave your group. Even staying with your group until retirement, those plans most likely don’t go with you after retirement. It’s recommended having some combination of individual/group life insurance.
Glossary of Terms
An option for payment that allows the insured to pay a lower initial premium that gradually increases each year. This payment method is not offered by all carriers nor is it recommended for all insureds. Clients who opt for a graded premium option may convert to a level premium on any policy anniversary through age 50.
If the insured cannot perform the specific duties of their own occupation, the total disability benefit is paid EVEN IF they can work in another/different occupation.
Future Increase Option
This benefit provides you the option to increase you disability benefit when you income increases WITHOUT having to undergo any underwriting. All you have to do is validate your new income level.
Cost of Living Adjustment rider
This option adjusts your benefit to help keep pace with inflation during a period of disability. It is designed to increase you monthly benefit, whether totally or partially disabled. Typical increase is 3% compounded annually, however, there are other options that vary carrier to carrier.
Residual Disability rider
The option provides disability benefits when, due to injury or sickness, you suffer a loss of income of 15-25% (carrier dependent). This benefit is payable in proportion to your income loss, typically if the loss is greater than 75% of your income, your benefit amount is 100% of your monthly disability. Even after you fully recover and return to work full-time, we’ll continue to pay you benefits as long as you have a loss of income of at least 15% of your income prior to your disability.
Supplemental Benefit Protection rider
This option provides an additional layer of benefits above and beyond your policy’s monthly benefits. Designed to help keep your plans on track during a disability like: paying down debt, buying a home, saving for retirement, etc. For the first 10-15 years of a policy, if a disability should occur, this would be added on top of your monthly disability benefit. This amount is typically $2,500/month additional.
Catastrophic Benefit rider
This option offers extra protection from the financial impact of an injury or sickness that causes cognitive impairment, the inability to perform 2 or more ADL’s (Activity of Daily Living) or an unrecoverable disability. This is normally a lump sum benefit or an annually compounded rate, depending on the carrier.
Waiver of premium
You won’t be required to pay a policy premium while you’re disabled and collecting benefits.
Term life insurance provides you with a chosen death benefit amount for the duration of the “term”. Typical terms are 5 to 30 years. This is a basic policy with no additional components, such as cash value, but it is generally the most popular option for most people due to its lower cost.
A type of permanent life insurance that has a tax-deferred savings component. Whole life policies are typically 6-10 times more expensive than term life insurance policies.
A type of permanent life insurance where the policyholder can adjust the premiums if his or her financial situation changes. Universal life has a cash value that can earn interest and be used to pay the policy premiums.
Final Expense Life Insurance
A permanent life insurance policy designed to cover immediate expenses related to the policyholder’s death, such as the cost of the funeral or medical bills. These are typically guarantee issue, never expire, and are level premium.
Using your life or disability policy as collateral for a loan is called a collateral assignment. If you die or become disabled, you policy will be used to pay off your debt as opposed to being dispersed to your beneficiaries.
Evidence of Insurability
Your financial justification for getting life or disability insurance. Insurers evaluate your income, age, financial and medical circumstances to determine if you’re eligible for a certain amount or type of coverage.