Provider: Standard Insurance Company
A.M. Best Rating: A (Excellent)
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: 81
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: $23 Billion
Residual Benefit: Requires 15% or 20% loss of income (depending on the rider)
Guaranteed Benefit Increases: Available until age 55
Company Profile
The Standard Insurance Company has been providing insurance services since 1906. Their longevity and stability in the industry reflect their commitment to meeting clients’ needs with consistency and reliability. They are one of a few insurance companies who provide own-occupation coverage and offer robust disability insurance solutions for doctors.
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 shorter and longer options are available (180 or 365).
Benefit Period: Typically recommended up to at least age 65 (retirement age), but available up to age 67. Shorter periods are also available, but we don’t recommend it for physicians and other medical professionals.
Common Enhancements to a Policy
Non-Cancelable: Ensuring that your coverage cannot be canceled and your premiums cannot be increased as long as premiums are paid on time.
Own-Occupation: The Own Occupation rider on a disability policy covers you if you are unable to perform the majority of the occupational duties that you have been trained to perform. This means you would receive disability benefits if you couldn’t work in your “own occupation” even if you were able to gain employment in another field.
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. As long as you remain disabled, The Standard will pay an additional 3% of the Monthly Benefit on each anniversary of the date of the disability.
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 (FIO): A guaranteed option which allows you to purchase additional monthly benefits. There are no medical screening requirements to purchase more coverage through this rider. Financial underwriting is still required to justify the amount of coverage being requested.
Additional Policy Options to Consider
Catastrophic Disability Rider: Pays an additional benefit if you suffer a catastrophic disability, such as an event that prevents you from performing two or more activities of daily living, causes cognitive impairment or a presumptive disability.
Student Loan Rider: This rider reimburses monthly payments for specified student loan debt, while you are disabled, for as long as the loan obligation remains.
Other Unique Features
Military Service: You may suspend the policy if you are on full-time active duty in the military service. During a suspension, no premiums are due and you will have no coverage under the policy. Medical residents at civilian accredited teaching hospitals should secure disability insurance at least 6 months prior to graduating.
Choosing the right disability insurance provider is a crucial decision for physicians and medical professionals. The Standard Insurance Company is a trusted choice for physicians seeking reliable disability insurance.
