Risk Management:
Facts to Consider when Assessing your Coverage:
My client’s story is not uncommon and hopefully encourages you
to review your own coverage. In doing so, you should consult with someone
qualified to asses and analyze your coverage. By focusing on the following
topics, you should be able to mitigate the financial risks posed to you, your
family, and your partner(s) (if applicable) should you become disabled:
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Confirm the products you have and the levels of coverage. At a minimum,
it is recommended that your net benefit equal 60%
to 70% of your gross income.
Assess how your practice would proceed if one of the partners suddenly
became disabled.
Assess how your premiums are paid, and whether the monthly benefit is
subject to tax liability. Again, changing the manner in which premiums are
paid can drastically affect the benefit at the time of claim.
Confirm your policies definition of “Total Disability”. Confirm whether you
have a 1) “True Own Occupation”, 2) “Modified Own Occupation” or 3)
“Limited Own Occupation”
Confirm if your policy has a “Partial/Residual Disability Rider”/coverage.
Based on the occupational demands noted above, many dentists become
“Partially/Residually Disabled”.
Confirm your “Elimination Period”. While not discussed above, this is the
period of time that must be satisfied before a benefit is payable.
Confirm the “Maximum Benefit Period”. This is maximum period of time
benefits are payable.
Verify your Riders to confirm the full extent of your coverage.
Every dentist enters practice with the hope of ending their career
on their terms. However, for a significant portion of practicing dentists,
this is not the case. While there is little that can be done to remove
the risk of becoming disabled, dentists can plan for such an occurrence.
By doing so, they can anticipate, mitigate and plan in a manner that
adequately protects their financial future. With this in mind, reviewing
your coverage every year or so with a qualified professional will help
ensure you have the appropriate level of coverage to support your
family’s needs should you become disabled.
Your financial security may one day depend on it.
28
MAY/JU NE 2019 | P EN N S YLVA N IA D EN TA L J O UR N A L
Ethan F. Abramowitz, Esq., is a nationally
recognized disability insurance attorney,
and focusses his practice on the
representation of disabled physicians,
dentists, lawyers and business executives.
He is licensed in Florida, Pennsylvania
and California.
(Ethan@Seltzerlegal.com)
1
ADA, Disability Income Protection
Insurance Plan, https://www.insurance.
ada.org/ada-insurance-plans/
disability-insurance.aspx (accessed
December 19, 2018).
U.S. Social Security Administration,
The Facts about Social Security’s
Disability Program. SSA Publication No.
05-10570, January 2015
2
3
Id.
4
Council for Disability Awareness,
Disability Divide Consumer Disability
Awareness Study, 2010