Disability Insurance 101: What Canadian Doctors Need to Know

Disability insurance is extremely important for physicians. The demanding nature of the profession combined with high earning potential and substantial financial obligations makes having the right disability insurance policy absolutely crucial.

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Physicians invest years in education and training, often accruing significant student loan debts along the way. Your income is your most valuable asset and disability insurance protects it by ensuring that if you are unable to work, that should help you be able to meet obligations like mortgages and practice-related expenses.

Selecting the right disability insurance involves understanding the various options available to you. For example, an "own-occupation" policy is highly recommended for physicians. This type of policy will pay out if you cannot perform the specific duties of your medical specialty, even if you could work in another capacity.

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Determining the proper amount of coverage requires carefully assessing both your current and future financial needs and obligations. Your policy should provide sufficient monthly benefits to cover living expenses, loan repayments and other commitments, ideally indexed for inflation and continuing until retirement.

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Disability insurance policies can be tailored to fit individual needs through various riders such as:

 Cost of Living Adjustments which adjusts benefits annually

 Future Increase Options which allows for increases in coverage as your income grows (without requiring further medical underwriting)

 Residual or Partial Disability riders that provide benefits if you are able to work in a limited capacity but experience a loss of income

 Return of Premium riders refund a portion of the premiums paid if no claims are made by a certain age or time period

 Waiver of Premium covers premium payments for you while you are disabled and receiving benefits

These are just some of the many choices one needs to consider when assessing the right coverage.

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Given the complexity of disability insurance, working with an experienced, trusted Certified Financial Planner CFP® is essential. A CERTIFIED FINANCIAL PLANNER® (CFP®) can help you review your options, navigate your choices and ensure that you have the proper policy in place. This expertise can enable you to make an informed decision while smartly protecting your financial future.

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This information has been prepared by Ryan Secord who is a  Senior Investment Advisor for iA Private Wealth Inc. Opinions expressed in this post are those of the Senior Investment Advisor only and do not necessarily reflect those of iA Private Wealth Inc. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.

Insurance products and services are offered through Endeavour Wealth Management Inc., an independent and separate company from iA Private Wealth Inc. Only products and services offered through iA Private Wealth Inc. are covered by the Canadian Investor Protection Fund

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