any high-income professional who may have incentive pay tied to productivity.
#2 Enhanced Partial Disability This option is more liberal than the Basic Partial Disability rider. It only requires the insured to have a 15% loss of income due to disability. The policy also provides for a maximum of 12 months of Recovery Benefits following the payout of full disability benefits. I would strongly recommend this policy for high-income professionals, especially physicians, who often have income tied to productivity or incentive pay.
MassMutual MassMutual offers two Partial Disability Insurance Riders.Â
#1 Income Protection Rider This rider requires a 15% or more reduction in income due to disability. Benefits are paid in proportion to the percentage of income lost, up to the policy benefit. In the event of a 100% loss of income, the policy pays full benefits for the first 12 months. After 12 months, the policy pays full benefits if the insured is unable to work in their occupation.
#2 Basic Residual Disability Rider This rider requires a loss of income due to disability, but the specific percentage is not mentioned in the policy language. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. This rider does not provide a Recovery Benefit.
Ohio National Ohio National offers two Residual Disability Insurance Riders.
#1 Simplified Residual Disability Rider This rider requires a 20% or more loss of income due to disability. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. This rider does not provide a Recovery Benefit.
#2 Enhanced Residual Disability Rider This rider requires a 15% or more loss of income due to disability. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. It also provides a Recovery Benefit of up to 24 months following the payout of full disability benefits.
Principal Principal offers two Residual Disability Insurance Riders.
#1 Enhanced Residual Disability Rider This rider requires a 20% or more loss of income due to disability. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. It also provides a Recovery Benefit for up to 24 months following the payout of full disability benefits.
#2 Individual Occupation Partial Disability Rider This rider requires a loss of at least 15% of time, duties, or income due to disability. Benefits are paid in proportion to the loss of time, duties, or income, up to the policy benefit. It also provides a Recovery Benefit for up to 24 months following the payout of full disability benefits.
Guardian Guardian offers three Residual Disability Insurance Riders.
#1 Basic Partial Disability This rider requires a 20% or more loss of income due to disability, along with an inability to work as many hours or perform all the same duties as before the disability. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. After six months, they will consider the loss of income to be at least 50% if the definition of Partial Disability is met. It also provides a Recovery Benefit for up to 12 months following the payout of full disability benefits.
#2 Enhanced Partial Disability This rider requires a 15% or more loss of income due to disability. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. It also provides a Recovery Benefit for up to 12 months following the payout of full disability benefits.
#3 Graded Lifetime Indemnity Rider This rider requires a 15% or more loss of income. Benefits are paid proportionally depending on the loss of income, up to the policy benefit. It provides a Recovery Benefit for up to 12 months following the payout of full disability benefits, and it also provides a lifetime monthly benefit of 1% of the policy benefit for each percentage of loss of income.
In conclusion, it is essential for physicians and other high-income professionals to carefully review the terms of the Residual/Partial Disability Rider included in their disability insurance policy. This rider can provide valuable benefits if you are still able to work in your occupation but have experienced a loss of income or are unable to perform all your duties. The benefits provided by each insurance company can vary significantly, so it is crucial to understand how benefits are calculated and compare the options available to you. Do not solely focus on price when purchasing disability insurance, as the value you receive in terms of coverage and benefits is even more important.