FAQ

What is Long-Term Disability Income Insurance?

Replaces a percentage of your income in the event you are too sick or hurt to work after the policy elimination period.

Why should I consider purchase before I leave school?

As an OHSU student, you may qualify for discounted disability coverage through certain carriers—sometimes up to 25% off the base premium. Discounts aren’t guaranteed and vary by program, but when offered, they typically remain for the life of the policy. Extending the discount to future benefit increases usually requires a rider elected at the time you purchase the initial policy for an additional cost which can allow you to raise coverage later without new medical underwriting. Most individual policies are medically underwritten at the start.

How long does Disability Income Insurance pay you a benefit?

Benefits, if approved, begin after you satisfy the elimination period stated in your policy and continue for as long as you meet the policy’s definition of disability, up to the maximum benefit period specified in your policy. The benefit period may be a set number of years (e.g., 2, 5, 10) or extend to a specific age, such as 65, 67, or 70.

Do I have to be totally disabled?

No, many disability income insurance policies provide benefits in the event you are partially disabled. This can generally mean you are working fewer hours or have experienced a loss of income due to a covered disability.

What are some typical features or riders I may want to consider for my policy?

We suggest our dentist clients consider the following features/riders which are typically offered for an additional premium:

• Cost of living rider (COLA) - The purpose of the COLA rider is to help benefits keep pace with inflation in the event of a disability lasting longer than 12 months.

• Own-Occupation - The Own Occupation rider provides a Monthly Benefit when the Insured is totally disabled from your current occupation and is working in another occupation. Some policies restrict payouts if you're working in another field or exceed a certain income.

• Student Loan Rider - This rider is typically available for a limited number of years of the benefit period (e.g., 10-15) and benefits are usually only payable during total disability periods.This rider is typically available for a limited number of years of the benefit period (e.g., 10-15) and benefits are usually only payable during total disability periods.

• Future Insurability Option (FIO) - This rider allows the policy owner to increase the amount of monthly disability coverage as the insured’s income increases before disability. At issue, the FIO creates a pool of benefits which will be available during annual option periods to increase coverage. Typically exercisable annually until a certain age (e.g., 55), often subject to caps.

• Catastrophic – Covers you in addition to your base policy amount if you are unable to preform 2 of the 6 “Activities of Daily Living”, though benefit limits typically apply.

Will my policy follow me if I leave the state I purchased the policy in?

Most indivdual policies are portable and will follow you despite the state you move to as long as you continue to pay the premiums. While coverage doesn’t change, state laws may affect tax treatment of benefits.

How much coverage does a starting/graduating dentist need?

Most insurance companies will cover a graduating dentist for up to $5,000/mo without showing proof of income.

What does the medical underwriting process look like?

After completing an application, the insurance company will typically review your medical history, labs if needed and any avocations you may have to help determine eligibility for coverage. Specific underwriting requirements will vary by insurer.

What’s a “Medical Exclusion”?

If the insurance company deems a recent or pre-existing condition presents a higher risk, they may apply a medical exclusion for that condition. Exclusions vary by insurer.

Coverage details can vary by insurer. Every policy has its own terms, underwriting requirements, and may include certain exclusions or limitations