As a podiatrist, your work is hands-on and busy. Most podiatrists don’t wake up in the morning and think, “Today is the day I’m going to look into disability insurance.”

I think you’ll agree with me on that. And, you go about your day.

However, what if you could no longer do that job?

Have you ever thought about what would happen if you became sick, ill, injured, and disabled?

How would you pay the bills if you could not work?

How long could you stretch your savings? (Probably not that long…)

Disabilities do happen, even to the healthiest and best of us. They can spring out of nowhere and upend your future plans and the lifestyle you worked so hard for.

In this guide, we discuss disability insurance and the best disability insurance for podiatrists.

For faster navigation, feel free to click on a link below:

• What Is Disability Insurance for Podiatrists?
• Why Do Podiatrists Need Disability Insurance?
• How Disability Insurance Companies Underwrite Podiatrists
• Important Elements Of A Disability Insurance Policy
• Disability Insurance Riders for Podiatrists
• The Best Disability Insurance Options for Podiatrists
• Is An Association Plan Right For You?
• Other Important Disability Insurance Options For Podiatrists
• Now You Know The Best Disability Insurance for Podiatrists

Let’s jump in and give a quick overview of disability insurance.

---

What Is Disability Insurance For Podiatrists?

Disability insurance pays you a monthly benefit if you can’t work due to illness or injury. It is that simple.

Disability insurance isn’t that complicated. If you can’t work due to illness or injury, you receive a monetary benefit to help pay your bills.

Essentially, if you:

• Make money, and
• You and your family rely on that money to live, and if
• You and your family would be in financial disarray if you were sick or hurt and could not work, then

Think of disability insurance as “paycheck protection”. We have our house, cars, vacations, luxury items, and necessities. Think of all that. All of that is derived from your ability to work and earn an income. Likewise, all of that is potentially gone with your inability to work and earn an income.

Disability insurance is financial protection that allows you to receive money to help pay for your mortgage, utilities, etc., and even your business expenses if you are a business owner.

How much disability insurance benefits do you receive if you can’t work?

That depends on how much you make and your income. If you are an employee or a self-employed podiatrist, carriers pay between 60% and 80% of your income/salary.

Why don’t they pay 100%? Well, the reasons are simple:

• The disability benefit isn’t taxable, so that saves a ton of money, and
• To incentivize you to get back to work

Human nature tells us that if we receive 100% of our income, we might as well stay home, right?

Another way to think of disability insurance is the spare tire in your car or AAA. If your battery dies or you have a flat tire, you are delighted to have the spare tire or AAA. Right? I don’t have enough fingers or toes to count the many times AAA has unlocked my car door or given me a tow.

Same with disability insurance. You don’t want to use it, but you are happy it is available if needed. In this case, however, disability insurance is the spare tire for your life.

---

Why Podiatrists Need Disability Insurance?

That sounds great, John, you say. But, I am not going to need disability insurance.

That’s an interesting comment. Tell me about some of your patients.

Well, some are healthy and some are not.

OK, about those who are not. Why do they see you?

They have injuries or chronic problems, like diabetic ulcers, they need help with.

Did they expect to have these problems? These likely were or are disabilities.

Well…

You don’t need to answer that. I can see you know what I am getting at. The answer is no one does. A disability happens anytime. Disabilities do not discriminate. They don’t care about your ethnicity, income, or situation.

In fact, the SSA says that 1 in 4 working adults will be disabled before they turn 65.

What if you faced an injury or illness where you could no longer practice? That is a disability.

However, a disability isn’t only a severe accident. It can be a cancer diagnosis, an ALS diagnosis, or weird nerve pain shooting through arms that prevents you from using your hands.

Any type of illness or injury that prevents you from doing your job is a disability.

What would you do if you could not bring in an income to support your family? How would you pay the bills?

Now, do you see the importance of disability insurance for podiatrists?

More Important People Rely On You

So, now we know a disability happens anytime. Before this discussion, I bet you valued your patients quite a bit. Am I right?

Well, yes. They bring in my income. Without them, I am nothing.

Yes, your patients are very important. However, there is also a group of people who are more important. Who can be more important than my patients, you think? They pay my income. Without them, I wouldn’t have an income.

True. They do pay your income, which keeps your business going. However, they don’t love you as your family loves you. By far, if you have a family, your spouse and children rely on you more than you think. They love you more than anything.

If you are faced with a disability, but you don’t have disability insurance, you’ll need to answer some tough questions.

• Would you and your family be able to continue your standard of living without your income? If not, what changes would need to be made?
• Would your spouse have to work or work more?
• Would you need to sell your home to make ends meet? (just happened to a prospect I spoke to.)
• Who could be flexible with the children?
• Would you have the money to hire someone to care for the kids?

The tough questions can go on and on. You are in a difficult situation without disability insurance.

A disability can throw you an unexpected curveball in your life. However, with disability insurance, you have peace of mind knowing that you have a plan and income in place should the unexpected happen.

OK, John. You have made your point. I need this insurance. How do I get it?

Well, let’s first discuss disability insurance underwriting.

---

How Disability Insurance Companies Underwrite Podiatrists

Hopefully, we have made a great case showing that podiatrists need disability insurance.

Before you apply, however, you need to know how carriers underwrite occupations.

First, though, let’s start at the beginning.

When it comes to disability insurance underwriting, carriers look at your:

• Age
• Health
• Income / Salary
• Occupation
• Medical conditions
• Other hazards and lifestyle situations

If you are healthy, then that shouldn’t be an issue. But the unhealthier you are, the more costly the policy will be. Moreover, carriers limit benefits depending on the severity and type of health condition. They also may exclude any pre-existing conditions from coverage.

Age is age. The older you are when you apply, the more expensive the policy. That happens to everyone. This is why we recommend applying as soon as possible to lock in relatively lower premiums.

During the application process, disability insurance companies research your background using public records and informational databases such as the MIB and Milliman Intelliscript. Some companies may require a mini-physical called a paramedical exam. It’s also routine for someone from the underwriting team to contact you if he or she needs to clarify an answer on the application. You may also have to supply documents. Required documents include, but are not limited to, income verification, driver’s license, and medical records.

Your Occupation Matters In Disability Insurance

Carriers also look at your occupation and your medical specialty.

All the disability insurance companies classify occupations based on disability risk.

Carriers classify this risk numerically, usually from 1 to 5 or 6. A 5/6 occupation class has the lowest disability risk. Conversely, an occupation with a 1 has the highest disability risk.

For example, two people have the same birthday, height/weight, health status, and income. One is a construction worker and the other is an accountant. The construction worker pays more simply due to his occupation than the accountant (all things being equal).

For podiatrists, disability insurance carriers classify the occupation at a 2 or a 3.
That means moderate disability risk.

Now that you know how disability insurance carriers underwrite, let’s go over some important disability policy characteristics for podiatrists

---

Essential Elements Of A Disability Insurance Policy For Podiatrists

You’ve worked hard to make a living. You likely have had to take many certification exams, board exams, and residencies. It took a lot of hard work to get where you are today.

You want your policy to reflect that hard work. In other words, you want to ensure you have enough coverage if you file a disability claim.

We all want to save money, but being economical here does not help anyone. In particular, a skimpy plan does not help your family at all.

One of the largest disability insurance mistakes I see is placing cost at the center of the decision at the expense of coverage.

It should be the other way around.

Having said that, many ways exist to save on premiums AND still have a comprehensive policy.

We specialize in that, and we don’t allow our clients to spend needlessly. Contact us to learn more.

Nevertheless, let’s discuss some important disability insurance policy basics for podiatrists. These include income, the waiting period, the benefit period, and the definition of disability itself.

Your Income

While every disability insurance company is different, each company generally allows you to cover some percentage of your salary/income.

If you are an employee, carriers generally will cover 60% to 65% of your gross salary. For example, if you have a gross monthly salary of $5,000, you can cover up to $3,000 (60%).

If you are self-employed, carriers insure your net income, which is your gross income less any business expenses. If you are a sole proprietor, this is typically found on Schedule C of your tax return. Most companies allow podiatrist-business owners to cover a higher amount, like 70%. We discuss more disability insurance policies and options for business owners later in the article.

John, why don’t I receive 100% of my salary/income?

Good question. The reasons are twofold:

• Since you make your monthly payments with after-tax dollars, your monthly benefit amount is income-tax free. This is the main reason. (Note: if you are a business owner and pay your premiums through your business, you run the risk of taxing your monthly benefit payments. Consult your tax advisor on this issue.)
• The disability insurance company incentivizes you to go back to work.

The Elimination Period / Waiting Period And Benefit Period

Every disability insurance policy has an elimination period. It is also called a waiting period. The elimination period happens on a disability insurance claim. For example, a 90-day elimination period means your benefit period will begin after 90 days of disability. In other words, you “wait” 90 days, and then on the 91st day (in this example), you become eligible for benefits. Carriers typically pay your monthly benefit 30 days later, so around day 120 in this example.  This means you need adequate savings to carry you and your family until benefits begin. Most disability policies allow podiatrists 30, 60, 90, or 180-day elimination periods. Pick your elimination period carefully. As mentioned, you need adequate savings to get you through the waiting period/elimination period until benefits begin.

We find that many individuals and families can “get by” for a few months of disability; however, it is after 90 days that they feel a negative impact of no money.

The maximum benefit period is the maximum timeframe you receive payments on one claim. Most companies allow podiatrists a 2-year benefit period, a 5-year benefit period, a 10-year benefit period, or “to age 67” coverage.  Let’s say you’ve had your policy for 3 years with a 5-year benefit period. You severely hurt your back skiing. Per your policy, you could receive a benefit for 5 years on this one claim for your hurt back.

The Definition Of Disability Matters…

The definition of disability matters. As a podiatrist, you want some type of own-occupation disability insurance. What is own-occupation disability insurance? It means that your disability claim is based on your inability to perform the substantial duties of your own occupation (i.e., podiatry services).  Popular own-occupation coverage definitions include “true” or “modified” own-occupation definitions.

What is “true own-occupation”? Simply, it means you can continue to work in another occupation while receiving disability benefits for your own occupation as a podiatrist. So, if you can’t use your hands, but you can greet people at Walmart, you will receive disability benefits in addition to your earnings as a Walmart greeter.

Modified own-occupation is a bit different. You will receive a disability benefit based on your occupation as a podiatrist. However, you can’t work in another job. So, if you worked as a Walmart greeter, you won’t receive disability benefits under the modified own-occupation definition.

Finally, there is the stringent “any occupation” definition. This means, simply, if you can work in any other gainful occupation (for which you are reasonably suited, considering your education, training, and experience), the carrier denies benefits. So, under this definition, you won’t receive a disability benefit based on your education and experience as a podiatrist because the insurance carrier says you can work as a Walmart greeter.

The plans we work with contain the favorable true own-occupation definition for podiatrists.

---

Disability Insurance Riders For Podiatrists

Disability insurance companies allow you to customize your policy through riders (link). You can add optional riders at an additional cost to your policy to fit your needs and budget best. You add these riders at the time of application. Some popular rider options for podiatrists include:

Guaranteed Insurability Option Rider:  This is a future increase option. It allows you to buy more disability insurance as your salary or income increases with no evidence of health insurability. You just need to provide evidence that your salary or income increased, which is usually done through a W-2 or a copy of your tax return.

Residual Disability Benefit Rider: This rider will pay partial disability benefits and pay benefits upon returning to work from a total disability. You typically experience an income loss of 20% or more compared to your pre-disability income. Usually, the amount of disability income you receive is a percentage of your total monthly disability benefit.

For example, you are diagnosed with carpal tunnel in your left wrist. Your doctor wants you to try some relaxation and rehabilitation techniques before considering surgery. Sounds great, but your doctor says you can only work 3 days a week, not 5. That’s a disability. A partial disability, but a disability nonetheless. Let’s say you experience a 40% income loss. If your monthly disability benefit is $4,000, you will receive $1,600 ($4,000 X 40%). Easy math.

Additional Riders for Podiatrists

There are other riders available. Of course, additional riders come with an additional cost. However, these may be important to you:

• Retroactive injury benefit
• Catastrophic disability benefit
• Mental illness/drug use option
• COLA rider – this rider increases your monthly benefit by the cost-of-living (usually, no less than 3%) after you have been on an approved claim for 1 year
• Student loan payments rider – this option creates a separate benefit and helps pay for your student loans when you are on a total disability.
• Critical illness option

and more, depending on the carrier. If you would like to learn more, please contact us.

---

The Best Disability Insurance For Podiatrists 

You are probably wondering who we like to work with. First, we work with many disability insurance carriers. So, we are sure we can find one that meets your needs and budget.

It’s important to note that the “best” carrier is the one that meets your needs and situation, not necessarily the one with the lowest cost.

Additionally, some carriers classify the podiatrist occupation differently. Some carriers are better with some occupations than others.

Here are some of the disability insurance carriers we like to use for podiatrists:

• Illinois Mutual
• Assurity
• Ameritas
• Guardian
• Standard
• Principal
• Mass Mutual
• Petersen International

These carriers contain most of the important elements we discussed earlier.

Cost of Disability Insurance for Podiatrists

Many podiatrists call us to inquire about costs. They think the lowest-cost policy is the best one for them.

The lowest-cost product is usually the best for commodity-type products, like gas, milk, bananas, and bread.

However, that is not the case for disability insurance.

When podiatrists contact me about disability insurance, they have invariably called another broker. This other broker supplied them with a quote. When I provide my illustration, they wonder why my quote is more expensive. They should be thinking why the other quote is much less. Here are some of the reasons why:

• a different definition of disability
• longer waiting period
• shorter benefit period
• lower monthly benefit
• missing key riders like the residual disability benefit rider (I see this missing from many other quotes)
• missing important health or lifestyle situations that are integrated into my quote
• different occupation classification

We work with all the major disability insurance companies (see above). Our job is to put in place a plan that will provide the most benefit for you, whether you have a total or partial disability, when you need the money the most. I am sure you will agree with me that if you have to make a disability claim, you really don’t care about what you paid for the policy (of course, within reason).

Put Cost Into Perspective

Having said that, we always balance benefits, needs, and wants with premium cost. On your policy, expect to pay anywhere from 3% to 5% of your income for your disability insurance policy.

John, is that it?

Yes, the cost could be lower or higher depending on your age, health, and needs (everything we discussed in our underwriting section above), but that is about what a solid disability insurance plan should cost. In other words, your policy costs about 3 cents to 5 cents of every dollar you make.

Think about that!

I wouldn’t put too much faith in the premium rates you see elsewhere online. They may not be updated or exclude certain provisions. Contact us to learn more, and we can give you a quote.

---

Is An Association Plan Right For You?

Many podiatric associations offer disability insurance. Are these plans right for you? Maybe. Maybe not, though.

Disability insurance plans through associations are usually limited and “plain vanilla”. It doesn’t mean they are bad. It just means they contain a basic structure to meet the needs of everyone.

Some podiatrists think association plans are guaranteed issue. Nope.

You still have to go through underwriting. There’s no avoiding that.

Here are some advantages of association plans:

• Some coverage for pre-existing conditions
• Might be cheaper, initially, but then premiums might “step up” every year or 5 years

And some disadvantages:

• Other benefit coordination, including group coverage and social security
• Limited waiting periods
• Cap on monthly benefits
• 2 year true own-occupation definition
• To age 65 coverage available, but possibly at the “any” occupation definition
• Partial disability after total disability only (likely) or no partial benefits at all
• Premiums could “step-up” (i.e. increase) as you age

Like anything, there are advantages and disadvantages. Feel free to contact us about any specifics. We are happy to explain, compare, and contrast so you can make an educated decision.

Let’s discuss other disability insurance options for podiatrists.

---

Other Important Disability Insurance Options For Podiatrists

So far, we have discussed individual long-term disability insurance.

There are other options that may work for podiatrists. We define and discuss them below.

Group Employer Disability Insurance

We have helped podiatrists with group disability insurance. Group employer disability insurance is established through your business. Your business pays for the cost of the policy for you and/or your employees.

Group employer disability insurance can be flexible.

No way, you say. I tried that before, and I needed to go through underwriting and participation requirements. Moreover, they would not insure my spouse and me since we are in business together.

So, yes, participation requirements exist if you, as the employer, are not paying 100% of the premiums.

However, we work with one group disability insurance plan that is guaranteed issue. For real.

That means if you have a serious health or lifestyle issue, you can still obtain disability insurance.

Additionally, they will insure spouses working together in the business and family members with no restrictions.

Like all group employer disability insurance, the plan:

• Has own occupation and then transitions to any occupation (3 years own occupation)
• Step up rates in 5 year age bands, with a premium freeze for the initial 3 years
• Covers pre-existing conditions
• Will integrate with Social Security

However, it has additional benefits:

• Carve-out occupations are possible. This means you can insure only the podiatrists or only the office staff. Or, both, with separate plans.
• Covers family members
• Relatively affordable

There are other group employer options as well, including short-term disability insurance (link).

If you are an employee of a podiatry practice without a group employer disability insurance offering, feel free to speak with the business owner and reach out to us. We have helped many podiatry practices establish a group/employer disability insurance plan at an affordable price.

Business Overhead Expense Insurance

Business overhead expense insurance is an important type of policy for business-owner podiatrists. This type of policy pays your business expenses if you are disabled.

Sounds great, John, you say. But, I already have this policy.

You actually don’t. Many people think that, but what they really have is business interruption insurance or business property insurance. That is part of your liability or commercial insurance. It pays you for lost income if your business doesn’t operate due to damage, like a fire or flood.

Business overhead expense insurance pays for your business expenses if you can’t work due to a disability. It will help pay for your:

• Rent
• Employee salaries
• Liability, commercial, and other insurances
• Property taxes
• and more

Business overhead expense insurance keeps the lights on, rent paid, and employees happy.

Additionally, the premiums are tax-deductible. If you use the policy to pay for your business expenses, then the benefit is income tax-free.

Most of the time, the cost of business overhead expense insurance is very inexpensive compared to an individual policy.

Guaranteed Standard Issue Disability Insurance for Podiatrists

Guaranteed Standard Issue (GSI) is a type of disability insurance that is guaranteed issue. No health underwriting exists. It is established through employers.

John, is this group/employer disability insurance?

Not necessarily.

While GSI policies are established through employers, they are individual plans. They are not “plain vanilla” like group/employer plans.

Eligibility includes:

• key employees, like management or a set of physicians
• higher salaries/income
• occupation classes of 3 and higher
• gainful employment
• generally a tight age range (18 to 50)

Why do disability insurance companies offer GSI when the underwriting is guaranteed issue? There are many reasons, mainly because they are earning a profitable business from generally healthy and stable applications.

Disability insurance companies offer GSI policies because they:

• attract profitable businesses and occupations
• are customizable to the company and applicant
• traditionally attract healthy applicants with positive claim status

Disability Insurance For Business Loans

Paying back a loan is a serious matter.

You pay a promissory note that says you will pay back the loan…

…no matter what.

What if you get disabled? What do you think happens to those payments?

Oh, John, you say. I’ll just work with the bank or the lender on managing the payments.

You will?

How sure are you about that? That promissory note essentially says you will pay no matter what.

What if you invest in new equipment – or even a loan to purchase a new practice – and suddenly you are disabled?

Do you think the bank will let you off scot-free?

No, you say.

Right.  This underscores how disability insurance for business loans protects you. It will continue your loan payments – right to the lender – with no involvement from you.

But, John, what about the individual disability insurance?

That’s for your everyday needs. That pays your mortgage and groceries. It keeps your personal lifestyle afloat while you get better.

If you assign your individual disability benefit to pay your loans, you’ll ultimately be stuck between a rock and a hard place.

A disability insurance plan designed to cover your business loans does the trick. It’s generally affordable, too, because your loans should be lower than your income.

Feel free to contact us if you have any questions. We are happy to help.

---

Now You Know Why Podiatrists Need Disability Insurance & The Best Disability Insurance For The Podiatry Profession

We hope you now have a solid idea of why podiatrists need disability insurance.

Confused? Don’t feel that way. We’re here to help educate you and protect your income and future.

Feel free to contact us or use the form below.

There is no risk of contacting us. We only work for you, your family, and your best interests only. If we can’t help you, we will point you in the right direction as best we can and part as friends. You can always reach out to us again. We have helped many podiatrists secure the right disability insurance for their specific situation, giving them and their families peace of mind. I am sure we can help you out, too.