Overcoming 5 Objections to Group LTD for Doctors: Solutions for Brokers

Medical practices face unique challenges when protecting their doctors’ incomes. Doctors perform complex procedures, manage sophisticated practices, and often derive income from multiple sources – including practice ownership. Traditional group long-term disability insurance (LTD) often falls short of meeting these specialized needs.

Today’s doctor groups need coverage that accounts for procedural income, ownership stakes, and complex compensation structures. A neurosurgeon who can no longer perform delicate procedures but can still read imaging studies needs different protection than an office worker with carpal tunnel syndrome. Similarly, a practice partner whose income includes both clinical work and ownership requires more sophisticated coverage than a traditional group LTD policy typically provides.

As brokers engage with practices about group LTD coverage, they often encounter objections based on outdated perceptions of group disability insurance. This guide addresses the five most common objections brokers hear from doctor groups, demonstrating how modern, specialized group LTD coverage meets the unique needs of today’s medical practices.

“We Already Have Individual Disability Insurance”

Smart doctors protect their incomes early in their careers with individual disability insurance (IDI). But as their careers advance, these policies often leave significant income gaps. A policy that offered adequate coverage during residency may only replace 25-30% of income after a few years in practice.

Consider this scenario: A doctor purchased IDI during residency with a $5,000 monthly benefit. Five years into practice, their income has grown to $400,000 annually. That once-adequate policy now replaces only 15% of their income. Even with the future increase options many doctors select, IDI alone rarely provides enough coverage for today’s doctor incomes.

This is where specialized group LTD becomes crucial. MGIS’s Disability Guard for Doctors™ works alongside existing IDI policies to help doctors achieve optimal income replacement. Unlike traditional group coverage, our program:

• Uses a CPT/CDT code Definition of Disability that aligns with IDI policies
• Covers ownership income that many doctors rely on
• Provides clear coordination of benefits language to prevent coverage gaps

Broker Discussion Point: “Let’s review your doctors’ current IDI coverage and analyze their income replacement ratio. Many doctors are surprised to learn they’re significantly underinsured, especially when factoring in ownership income. What percentage of income would your doctors need to maintain their lifestyle and practice obligations if they became disabled?”

By layering specialized group LTD coverage with existing IDI policies, medical practices can help ensure their doctors maintain financial stability if they become disabled. This comprehensive approach protects not just their clinical income, but their entire compensation package.

“Group LTD Won’t Cover Ownership Income”

Traditional carriers often slash benefits when doctors receive ownership income during disability. A $15,000 monthly benefit can drop to $100 – devastating for practice owners whose ownership income exceeds 50% of their compensation.

Disability Guard for Doctors™ protects total income by:

• Including ownership income in pre-disability earnings calculations
• Recognizing that disabled doctors may lose both clinical and ownership income
• Providing transparent benefit calculations
• Not reducing benefits for lagged income from work performed before disability

Example: A doctor partner earns $800,000 annually – 60% from clinical work and 40% from ownership. If disability prevents procedures, they lose both income streams. Traditional LTD might only protect clinical income, creating a $320,000 annual gap. Our coverage protects their total compensation.

Broker Discussion Point: “When reviewing your current coverage, what percentage of your partners’ income comes from ownership? Many practices are surprised to learn their existing group LTD leaves this significant portion of income unprotected. Let’s analyze your partners’ total compensation structure to ensure comprehensive coverage.”

This ownership income protection represents a crucial difference between traditional group LTD and specialized coverage designed specifically for doctor practices. Don’t let your doctors discover this gap when it’s too late.

“The Definition of Disability Isn’t As Good As Individual Policies”

Most group LTD policies use generic occupational definitions that fail to recognize medical specialties’ unique demands. A surgeon who can’t perform procedures but can see clinic patients might face claim denial. MGIS revolutionizes this approach with our CPT code-based definition.

Disability Guard for Doctors™ determines disability based on procedures doctors performed in the 12 months before disability onset. Our claims team obtains specific billable procedure codes – including CPT and CDT – to evaluate each claim. This means:

• Doctors qualify as disabled if they cannot perform even one of their regular procedures
• Benefits align with actual income-generating activities
• Protection covers both procedural and non-procedural work
• Claims decisions reflect real medical practice patterns

Example: An orthopedic surgeon develops an essential tremor. She can still see patients and read imaging studies but can’t perform joint replacements – procedures generating 70% of her income. Traditional LTD might deny her claim because she can still “practice medicine.” Our CPT code definition qualifies her for benefits because she cannot perform specific, documented procedures.

Broker Discussion Point: “Let’s review the specific procedures your doctors perform. Which procedures generate the most revenue? Understanding these details helps ensure your coverage aligns with how your doctors actually practice. What would happen if your highest-earning specialists could no longer perform their key procedures?”

This specialized definition provides doctors with the same level of protection they expect from individual policies, but with the cost advantages of group coverage.

“The Mental Health Limitations in Group Policies Are Too Restrictive for Doctors”

Doctors face unprecedented mental health challenges, with 62.8% reporting burnout symptoms according to Mayo Clinic. Traditional group policies limit mental health coverage to 24 months lifetime – regardless of recovery or relapse patterns.

This limitation creates significant risk for medical practices. Consider these realities: 

• Doctors experience higher rates of depression than the general population 
• The demanding nature of medical practice increases susceptibility to mental health conditions 
• Recovery from severe mental health conditions often requires more than 24 months 
• Doctor burnout can lead to career-ending complications if not properly addressed 

Disability Guard for Doctors™ provides a per-occurrence mental health and substance abuse benefit that recognizes the cyclical nature of these conditions:

• Each occurrence qualifies for 24 months of benefits
• Doctors who recover and relapse after six months qualify for a new 24-month benefit period
• Coverage recognizes how mental health impacts procedural abilities
• No mandatory rehabilitation requirements
• Voluntary treatment options that maintain doctor dignity

Example: A surgeon develops severe anxiety after difficult cases. Unlike traditional LTD that terminates benefits at 24 months, our coverage provides another full benefit period if they recover and face a new episode six months later.

Broker Discussion Point: “How does your practice currently support doctors dealing with mental health challenges? Many groups don’t realize their LTD coverage could terminate benefits while a doctor is still unable to perform critical procedures. Let’s review how comprehensive mental health coverage protects both your doctors and your practice’s stability.”

This enhanced mental health coverage demonstrates our understanding of modern medical practice challenges and our commitment to doctor wellbeing.

“Group Policies Become ‘Any Occupation’ After 24 Months”

The “24-month switch” to any occupation coverage remains one of the most persistent misconceptions about group LTD. While this limitation existed in older policies, modern specialized group coverage has evolved significantly. Yet many doctors still believe they’ll be forced into an alternative occupation after two years of disability.

Traditional group carriers often define disability based on the ability to work in “any occupation” after an initial own-occupation period. This outdated approach ignores the substantial investment doctors make in their specialized training. A neurosurgeon who spent 15 years training shouldn’t be expected to take an administrative role simply because they’re physically capable.

Disability Guard for Doctors™ protects doctors with true specialty-specific coverage until retirement:

• No switch to “any occupation” definition
• Protection based on ability to perform specific medical procedures
• Coverage continues as long as the doctor cannot perform their specialty
• Benefits extend to retirement age, not arbitrary time limits

Consider this example: A dermatologist develops severe rheumatoid arthritis affecting her ability to perform procedures. Under traditional group LTD, she might be forced to consider alternative work after 24 months because she could theoretically handle administrative duties. Our coverage continues protecting her income as long as she cannot perform her specialty procedures, regardless of other work capabilities.

Broker Discussion Point: “Let’s discuss how a long-term disability would impact your practice. Have you reviewed what happens to your current coverage after 24 months? Many practices are surprised to learn their doctors could be forced to choose between their benefits and their medical career. How would that affect your practice’s stability and doctor retention?”

Long-term specialty protection provides peace of mind for both doctors and practices, ensuring financial security throughout a disability.

Empowering Group Practices with Comprehensive Disability Protection

The landscape of doctor disability coverage has evolved significantly, yet many medical practices still rely on outdated perceptions when evaluating group LTD coverage. Modern specialized group disability insurance, particularly MGIS’s Disability Guard for Doctors™, addresses the complex needs of today’s medical practices with innovative features designed specifically for doctors.

Key takeaways for brokers:

• Individual disability policies often leave significant income gaps as doctor careers advance
• Practice ownership income requires specialized protection that traditional group LTD rarely provides
• CPT/CDT code-based disability definitions align with how doctors actually practice
• Mental health coverage needs extend beyond traditional 24-month limits
• True specialty-specific coverage protects doctors throughout their careers

Don’t let outdated perceptions prevent your medical practice clients from obtaining the comprehensive disability protection they need. MGIS’s specialized approach to group LTD provides the sophisticated coverage today’s doctors require, working alongside individual policies to create complete income protection.

Ready to learn more? Contact MGIS to discover how our innovative approach to group LTD can benefit your doctor group practice clients.