Provider: Massachusetts Mutual Life Insurance Company
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: 98
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: $247 Billion
Residual Benefit: Requires 15% or 20% loss of income (depending on the rider)
Guaranteed Benefit Increases: Available until age 55
Company Profile
Massachusetts Mutual Life Insurance Company, commonly known as MassMutual, is a leading mutual life insurance company. Founded in 1851, MassMutual has grown to become one of the most reputable and financially stable insurance providers in the United States. With a strong focus on financial security and personalized service, MassMutual offers a comprehensive range of insurance and financial products designed to meet the diverse needs of its policyholders. 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 option is 90 days, though longer options are available (60,180, and 365 days).
Benefit Period: Typically recommended up to at least age 65 (retirement age), but available up to age 70. Shorter options are available, but we do not recommend them for doctors.
Non-Cancelable and Guaranteed Renewable Policies: Ensuring that your coverage cannot be canceled and your premiums cannot be increased as long as premiums are paid on time
Common Enhancements to a Policy
Own Occupation: Allows you to receive benefits if a disability prevents you from performing the material and substantial duties of your occupation, even if you are employed in a different occupation.
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. MassMutual offers this at 3% per year, compounded annually.
Future Increase Option (FIO): This option allows you to increase benefits every 1 to 3 years until age 55, without medical underwriting. Not all companies offer the option to increase every year. There is financial underwriting required for exercising increase options.
Additional Policy Options to Consider
Student Loan Repayment: This rider reimburses monthly payments for specified student loan debt, while you are disabled, for as long as the loan obligation remains.
Premium Option: A level premium will remain level/fixed until it expires (typically at age 65). A graded premium will start off low and increase each year, eventually surpassing the level premium. Over the entire life of a policy, a graded premium will cost more.
Automatic Increase Rider: 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.
MassMutual’s disability insurance is particularly well-suited for medical professionals. The customizable enhancements and own occupation definition make it an excellent choice for many of our clients.