Provider: Berkshire Life Insurance Company of America
A.M. Best Rating: A++ (Superior)
A.M. Best Rating Explained: A forward-looking, independent, and objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, and business profile or, where appropriate, the specific nature and details of a security.
COMDEX Score: 99
COMDEX Score Explained: COMDEX is a ranking composite of all of the ratings that an insurance company has received from A.M. Best, Standard & Poor’s, Moody’s and Fitch. It gives the company’s standing, on a scale of 1-100, in relation to all other companies that have been rated by the rating services. A company needs to be rated by at least two rating services to receive a COMDEX.
Invested Assets: $69 Billion
Residual Benefit: Requires 15% or 20% loss of income (depending on the rider)
Guaranteed Benefit Increases: Available until age 55
Company Profile
Founded over 160 years ago, Guardian has built a reputation for stability, financial strength, and exceptional service. Guardian is one of the largest and most trusted insurance companies in the United States. They are one of a few insurance companies who provide a true own occupation benefit and offer robust disability insurance solutions for doctors.
True own-occupation disability insurance ensures that you receive benefits if you are unable to perform the specific duties of your medical specialty, even if you can work in another capacity.
Common Elements to a Policy
Elimination Period: The number of days you must be disabled prior to receiving benefits. The most common is 90 days. Other alternatives include 30, 60, 180, 360, and 720 days.
Benefit Period: The duration of time for which benefits are paid. Common options are to age 65, to age 67, and to age 70. The longer the benefit period, the higher the premium.
Common Enhancements to a Policy
Partial/Residual Benefit: Partial benefits that are paid in the event of a partial loss of income due to a disability. This amount of partial benefit is typically equal to the percentage of lost income.
Cost of Living Adjustment (COLA): Increases the monthly benefit while disabled and receiving benefits to keep pace with inflation.
Automatic Benefit Enhancement: Increases the monthly benefit on an annual basis while you are still working and not disabled. These increases will raise your premium, but it can be declined. It provides an annual 4% benefit increase each year for six years, with no proof of income required.
Future Increase Option: This option allows you to increase benefits every year until age 55, without medical underwriting. You must apply for additional coverage every three years and purchase at least 50% of any additional coverage offered to keep the rider in effect. Financial underwriting is required. If you do not apply or do not accept a minimum of 50%, this rider is removed from the policy.
Guardian is one of our most popular policies for doctors. With the number of options they have to personalize your policy, coverage amounts, and limitations, all while having the true own-occupation definition, Guardian is an excellent choice for your disability insurance policy.
