Group Versus Individual Disability Insurance for dentists
Disability insurance coverage is typically provided as an individual policy or through a group insurance policy.
Group Disability Insurance
Group insurance covers a company’s employees or members of an organization. Group insurance are commonly provided by employers and trade associations. Disability insurance can be obtained as an added benefit.
Group disability plans are guaranteed issue, which means there is no underwriting process. This means that if you apply as part of your employment or part of an association, you’ll be automatically enrolled.
Group disability insurance plans are less expensive than individual plans because the risk is spread over a larger number of people. However, group disability coverage is not sufficient for most dentists. Group policies offer basic benefits with very few optional features and restricted coverage. In many cases, the coverage is inadequate for specialty physicians with large incomes.
Also, group coverage is contingent on being part of the group sponsoring the plan. For example, changing employers will negate your coverage. Or, your employer may not be renewed as part of the annual renewal process.
Many dentists will supplement group insurance with individual disability coverage to obtain adequate coverage and portability.
Individual Disability Insurance
When you purchase individual disability insurance, you own the coverage as long as you pay the premium. The premium is generally locked in.
Individual plans are portable so if you change employers, which is common in the early phases of your career, you don’t lose coverage. And by adding riders, you can tailor your policy to your specific needs as your career develops.