IDI Supplement™: Doctor’s Choice and Partial Disability Benefits
Welcome to the MGIS Income Protect Individual Disability Insurance (IDI) series. In this module, we will be discussing IDI Supplement, Doctor's Choice, and Partial Disability Benefits. Doctors spend years developing their practice around a specific set of procedures. That is what they're known for, and what their referrals from other doctors and patients are based on. When a disability prevents them from performing the procedures they earn their living from, they cannot simply change the type of medicine they practice. And with a potentially major impact to their way of life, they may need time to consider what they want to do long-term. Like individual disability policies, IncomeProtect IDI supplement program gives the doctor or dentist the choice of when and in what capacity to return to work part time. There are no mandatory rehab or mandatory part-time work requirements like traditional LTD. Isn't the doctor the best person to make that decision? Not an insurance company's claim adjudicator.
It is important for physicians to have the choice of when to try part-time work. Still they have invested many years in perfecting their specialty and growing a practice. If they become disabled, they are highly motivated to return to work as quickly as possible or in as high functioning capacity as they can. MGIS recognizes this unique characteristic and provides specialized partial disability considerations for physician and dentist clients that support them in this effort, rather than penalizing them as might be the case with traditional LTD insurance coverage. If you choose to work part-time, our approach doesn't penalize you for attempting to come back to work as quickly as possible. Your income plus disability benefits can be 100% of your prior income for the first two years with no reduction to what we pay you. Many group LTD policies utilize either a 50% offset or a proportionate loss formula to calculate partial benefits.
Depending on your particular situation, one could be much more advantageous than the other, with regard to the benefit you would be paid. We utilize a best of both worlds approach, whereby benefits are calculated each month using both of these formulas. And the doctor is paid the higher of the two. Many traditional LTD policies utilized either a proportion at loss or 50% offset formula for calculating partial disability benefits for physicians who are working limited or part-time hours during recovery. Depending on a physician's particular situation, each of these formulas could pay a physician what they are expecting or may only pay the minimum benefit, typically between $50 and $100 per month.
In this example, a family practitioner with a policy that uses the 50% offset formula would be paid a $4,200 monthly benefit, as he or she expected. However, a surgeon earning $50,000 per month prior to disability, would only qualify for a $100 per month benefit. To avoid this potentially devastating scenario for doctors, we employ a best of both worlds approach, where we pay the greater of the two calculations as the monthly benefit. This ensures that doctors won't be penalized for receiving income while they are disabled and working to come back.
Thank you for watching the MGIS Income Protect series. We hope you enjoyed this episode. Want to learn more? Click on the next video or visit us at mgis.com.