Disclaimer: DocPlanning is an independent broker. We are not direct representatives or employees of the insurance companies featured on our website. Our goal is to provide unbiased advice and assistance in selecting the most suitable insurance products for your needs. The information provided on our website is for general informational purposes only and should not be construed as an endorsement or recommendation of any particular insurance company or policy.
The Standard is a marketing name for StanCorp Financial Group, Inc. and subsidiaries. Insurance products are offered by Standard Insurance Company of 1100 SW Sixth Avenue, Portland, Oregon in all states except New York. Product features and availability vary by state and are solely the responsibility of Standard Insurance Company.
The Catastrophic Disability Rider in a Disability Insurance Policy
Jun 26, 2024
As a doctor, your ability to work and earn an income is your most valuable asset. While disability insurance provides essential protection against the loss of income due to injury or illness, there’s an additional feature that can offer even more security: the Catastrophic Disability Rider. Understanding this rider and its benefits can help you make informed decisions about your disability insurance policy.
What is a Catastrophic Disability Rider?
A Catastrophic Disability Rider (CDR) is an optional add-on to your disability insurance policy. It provides additional benefits if you suffer a catastrophic disability, which generally means a condition so severe that it results in an inability to perform at least two activities of daily living (ADLs) without substantial assistance. These activities include bathing, dressing, eating, toileting, transferring, and continence. It may also cover severe cognitive impairment.
Why is a Catastrophic Disability Rider Important for Doctors?
Higher Benefit Payouts: As a medical professional, your standard disability insurance policy might cover a significant portion of your income. However, catastrophic disabilities often incur extraordinary costs beyond what a standard policy covers. A CDR ensures you receive additional funds to cover these higher expenses, providing peace of mind during a challenging time.
Comprehensive Coverage: Doctors are at higher risk for certain injuries and illnesses due to the physical demands and stressful nature of their work. The CDR ensures that if you suffer a catastrophic disability, you won’t have to worry about financial instability on top of managing your condition.
Long-term Care: Catastrophic disabilities often require long-term care services. The extra benefits from a CDR can help cover these costs, ensuring you receive the quality care you need without draining your savings.
How Does the Catastrophic Disability Rider Work?
In the event of a catastrophic disability, the rider kicks in after a predetermined waiting period, similar to your base disability insurance policy. The additional benefit amount is typically a percentage of your monthly disability benefit, providing you with a higher total benefit each month. This can be especially crucial for covering costs such as home modifications, specialized medical equipment, and long-term care services.
Who Should Consider Adding a Catastrophic Disability Rider?
While every doctor should consider the financial implications of a potential disability, those with dependents or significant financial obligations should strongly consider adding a CDR to their policy. If you are the primary breadwinner in your family or have substantial debts, the additional protection can be invaluable.
How to Get Started
Protecting your future doesn’t have to be complicated. Contact us today to request a free quote for disability insurance. Our experienced agents will guide you through the process, ensuring you get the coverage that best suits your needs.
