By Ethan F. Abramowitz, Esq.
s an attorney, dedicated to representing
disabled professionals with Individual
Disability Insurance (IDI) and Long Term
Disability (LTD) insurance matters, I am often in the
unenviable position of informing dentists of the
deficiencies in their coverage. Such was the case
during a recent consultation with an Oral Surgeon,
who was forced to cease practicing due to a
physiological disorder affecting grip strength,
manual dexterity and fine motor function in his
dominant hand.
During our initial consultation, my client handed
me his two IDI policies. Confidently, he assured me
that he had “very good policies” that provided
“Own Occupation” coverage. As we discussed his
disability matter and history, he explained that he
and his partner opened their practice approximately
15 years ago. At that time, he already had purchased
an IDI product, that he obtained following dental
school. He again assured me it provided “Own
Occupation” coverage, with a monthly benefit of
$10,000, payable to his 65 th birthday. Similarly, he
explained that he supplemented this policy with
an association policy, obtained through the
American Dental Association (ADA). Again, he was
certain that the ADA policy also provided “Own
Occupation” coverage, and a monthly benefit of
$6,000 that was payable through his 65 th birthday.
Together, he was confident that the two policies
combined to provide $16,000 a month in non-
taxable disability benefits.
As we reviewed his policies, financial records and
partnership documents, it became apparent that
the dentist misunderstood important provisions of
his disability insurance coverage. As will be
outlined in this article, he confused common topics
related to disability insurance products.
Unfortunately, these oversights, coupled with the
practice’s decision to decline Business Overhead
Expense and Disability Buyout policies, significantly
impacted his financial security, as well as that of his
partner and support staff when he became
disabled.
Why is disability
insurance important?
According to the American Dental Association’s
statistics, 25 percent of practicing dentists will
cease practicing prematurely due to a disabling
medical condition. 1 These statistics are consistent
with the Social Security Administration’s study,
showing that one in four working Americans will
become disabled prior to their Social Security
Retirement Age. 2 Other studies and statistics
indicate significantly higher disability rates
amongst dentists. While I have not been able to
independently verify the accuracy of their reports,
the variance can easily be explained by accounting
for “Residual/Partial Disability” claims and the
occupational demands of practicing dentistry.
Based on this understanding, he confirmed that he
previously declined multiple opportunities to
supplement his disability coverage over the years.
Specifically, he explained how he and his partner
were approached by their respective financial
advisors over the years, each attempting to sell
them additional disability coverage. This included
additional IDI products, as well as Business
Overhead Expense policies, Disability Buyout
policies and Group LTD plans. However, he was
confident he was adequately insured and declined
to obtain additional coverage.
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