MGIS High Limits Disability Insurance – A Differentiator

James Crook
disability insurance can differentiate you

Offering MGIS High Limits Disability Insurance differentiates you and adds value to your doctor group clients.  This type of insurance provides a wide range of advantages that are especially beneficial for doctors, helping to ensure they can maintain their lifestyles if faced with injury or illness due to disability.  In addition, MGIS offers convenient underwriting approaches making it easy for you as an insurance advisor to help your doctor-clients fill any income-protection gaps.

We’ll take an in-depth look at all the features and benefits this type of insurance policy offers.  We’ll also explain why it should be considered by any highly-compensated doctor who wants extra peace of mind.

Your Clients are Competing for the Best Healthcare Talent

Healthcare employers must compete for doctor employee talent during the growing physician shortage.  As a result, many employers are increasingly turning to benefits as a way to sweeten the pot to keep and attract new employees.

Most do not understand how important obtaining the right type and right amount of disability insurance is to doctors.  According to the 2021 Annual Survey of the U.S. Individual Disability Income Insurance Market, doctors, dentists, and surgeons buy the bulk of the individual disability insurance (IDI) sold in the country.

Doctors buy more disability insurance than any other profession for a myriad of reasons:

1. High income potential: Doctors typically earn higher incomes than many other professionals, which means they have more to lose in terms of income if they become disabled and unable to work. Disability insurance helps protect their income and maintain their financial security in the event of illness or injury.

2. Significant investment in education and training: Doctors spend many years and substantial financial resources on their education, training, and ongoing professional development. Disability insurance helps protect the return on that investment by ensuring they have a reliable income source if they are unable to practice medicine due to disability.

3. High risk of occupation-related disabilities: Doctors, particularly those in surgical or procedural specialties, are exposed to various occupational hazards and physically demanding work that can increase their risk of injury or disability. Purchasing disability insurance provides a safety net against the potential loss of income resulting from such risks.

4. Precise skillset: Many doctors possess specialized skills that are not easily transferable to other professions. If they become disabled and can no longer perform their specific medical duties, finding alternative work that matches their skill set and provides a comparable income can be challenging. Disability insurance helps offset this potential income loss.

5. Long working hours and stress: Doctors often work long hours and face high stress levels, which can contribute to a higher risk of developing physical and mental health issues. Disability insurance can provide financial protection in case these factors lead to an inability to work.

6. Awareness of health risks: As medical professionals, doctors are well aware of the various health risks and illnesses that can result in disability. This heightened awareness may motivate them to seek more comprehensive disability insurance coverage.

Overall, doctors purchase more disability insurance due to their high-income potential, significant investment in education, elevated risk of occupation-related disabilities, specialized skill set, long working hours, stress, and heightened awareness of health risks.

High Limits – Up to 70% Income Replacement

Many doctors have individual disability insurance (IDI) and group long-term disability (LTD) coverage. Unfortunately, for doctors earning approximately $400,000/year or more, IDI and group LTD may not be enough to protect 60-70% of their income.  Here’s why:

1.  Benefit caps: Both group and IDI policies often have a monthly benefit cap, which is the maximum amount the policyholder will receive in the event of a disability.  For high-income earners like doctors, these caps may not be sufficient to cover their expenses and maintain their lifestyles.

2.  Income replacement ratio: Disability insurance policies generally replace a certain percentage of the policyholder’s income, usually around 60-70%.  This percentage may not be adequate for doctors, who often have higher financial obligations, such as student loan repayments, mortgages, and other expenses.

3.  Group policy limitations: Group policies offered through an employer typically provide less comprehensive coverage than individual policies.  They may have more restrictive definitions of disability, exclusions, and lower benefit amounts.  Additionally, group coverage may not be portable, meaning a doctor may lose their coverage if they change employers.

For these reasons, doctors and other high-income professionals might consider a high-limits disability insurance policy in addition to group and IDI coverage.  A high-limits policy can provide supplemental coverage beyond the benefit caps of group and IDI policies, ensuring that they have a higher income replacement ratio and more comprehensive financial protection in the event of a disability.  This type of policy can be tailored to meet the unique needs of high-income professionals and help to maintain their lifestyle, cover financial obligations, and protect their financial future.

MGIS High Limits Disability Insurance offers benefits up to $19,500/month and $2 million lump sum with no individual underwriting for groups of five doctors or more.  Monthly benefits of $80,000/month are available with underwriting.

Guaranteed and Simplified Issue

Guaranteed and simplified issue underwriting are alternative methods of obtaining disability insurance coverage that make the process easier and more accessible for applicants.  These underwriting methods offer unique benefits compared to traditional underwriting, which often requires extensive medical examinations and detailed evaluations of an applicant’s health, occupation, and finances.

Benefits of guaranteed issue underwriting:

No medical exams or health questions: Guaranteed issue disability insurance does not require medical exams, health questionnaires, or detailed health information.  This makes the application process faster, more convenient, and less invasive for applicants.

Guaranteed acceptance: As the name implies, guaranteed issue policies guarantee acceptance, regardless of an applicant’s health, occupation, or financial situation.  This is particularly beneficial for individuals with pre-existing conditions or high-risk occupations that may make obtaining coverage through traditional underwriting difficult.

Benefits of simplified issue underwriting:

Streamlined application process: Simplified issue disability insurance involves a more streamlined application process with fewer medical questions and no medical exams.  This can save time, reduce paperwork, and simplify the process for applicants.

Faster approval: Since the underwriting process for simplified issue policies is less involved, the approval time is usually shorter than for traditionally underwritten policies.  Applicants can often receive a decision within days or weeks, compared to weeks or months for traditional underwriting.

More accessibility: Simplified issue underwriting can be more accessible for individuals who may not qualify for traditional underwriting due to their health, occupation, or other factors.  While coverage may still be subject to certain limitations, the simplified issue underwriting process increases the likelihood of obtaining coverage for a broader range of applicants.

It’s important to note that guaranteed and simplified issue disability insurance policies may come with higher premiums, lower benefit amounts, and more limited coverage compared to traditionally underwritten policies.  However, for individuals who may not qualify for traditional coverage or prefer a less invasive application process, these alternative underwriting methods can provide valuable access to disability insurance protection.

MGIS High Limits Disability Insurance has the following underwriting options:

Simplified Issue:

  • Up to $19,500
  • Minimum “knock-out” questions

True Guarantee Issue (available at underwriter discretion):

  • Up to $3,000 for a group of 25 doctors with 50% minimum participation
  • No “knock-out” questions

Fully Underwritten

  • Up to $80,000 standalone
  • Up to $50,000 when coupled with $2,000,000 lump sum

Coverage for Mental Nervous & Drug and Alcohol (MNDA) Disabilities

Like any other professionals, doctors can be vulnerable to mental, nervous, and drug and alcohol-related disabilities.  Having protection for these conditions in their disability insurance policies is important for the following reasons:

1. Prevalence of mental and nervous disorders: Doctors are not immune to mental and nervous disorders such as depression, anxiety, and burnout. The demanding nature of their profession, long hours, and high-stress work environment can contribute to the development of these conditions. Ensuring that their disability insurance policies cover mental and nervous disorders can provide them with the necessary financial support during such challenging times.

2. Substance abuse risks: The medical profession has been found to have higher rates of drug and alcohol abuse compared to other professions. The stress of their work, access to prescription medications, and the pressure to perform can make doctors more susceptible to substance abuse issues. Having coverage for drug and alcohol-related disabilities ensures that doctors have the financial support they need to undergo treatment and recover without the added burden of lost income.

3. Comprehensive coverage: Doctors invest significant time, effort, and financial resources into their education and careers. Adequate disability insurance should cover a wide range of potential disabilities, including those related to mental health and substance abuse. This comprehensive coverage provides peace of mind, knowing that their financial well-being is protected in the event of any disability.

4. Extended recovery periods: Mental, nervous, and substance abuse-related disabilities can sometimes require long-term treatment and extended periods of recovery. By having coverage for these conditions in their disability insurance policies, doctors can focus on their recovery without worrying about the financial consequences of an extended absence from work.

5. Professional reputation: A doctor’s reputation can be significantly impacted by mental, nervous, or substance abuse-related disabilities. Having disability insurance coverage that includes these conditions allows them to take the necessary time off work and seek appropriate treatment, reducing the risk of compromising their professional reputation.

In conclusion, MGIS High Limits Disability Insurance offers a unique solution tailored to the needs of doctors, dentists, and surgeons with high incomes. With the growing physician shortage and increasing competition for top talent, this type of insurance serves as a valuable differentiator for attracting and retaining doctors.

MGIS High Limits Disability Insurance addresses the limitations of traditional group and individual disability insurance policies, providing higher income replacement, guaranteed and simplified issue options, and coverage for mental, nervous, and drug and alcohol-related disabilities.  This comprehensive protection ensures that doctors can maintain their lifestyles, fulfill their financial obligations, and safeguard their futures in the event of a disability.

By offering this specialized insurance solution to your doctor group clients, you not only differentiate yourself in the market but also add value to their benefits packages, helping them attract and retain top talent in the competitive healthcare landscape.



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