Should I cancel my Ohio National Policy now that my practice is affiliated with a Hospital and offers Group Coverage?
Hello - the practice I work for was just bought out by our local hospital and they are providing us with Group Long Term Disability Insurance. The benefits seem to more than what I would receive from my Ohio National policy that I purchased during residency and the documents I have from Human Resources say that the group policy is Own Occupation. My agent is telling me I should keep my Ohio National policy that costs me over 400 per month but I don't see the point. What are everyone's thoughts here?
Thanks for posting your question. It's important to realize that Employer-Sponsored Long-Term Disability Insurance is not considered True Own Occupation Disability Insurance. Your agent is correct.
The term "Own Occupation" simply means the policy will consider you totally disabled if you are unable to work in your medical specialty but it doesn't mean it will allow you to work in another occupation for wage or profit while collecting your disability benefit.
Physicians have long considered Own Occupation disability insurance as a policy that not only considered them disabled when they were no longer able to work in their medical specialty but would also allow them to work in another occupation while collecting their disability benefit because they were no longer working in their medical specialty.
This type of Own Specialty or True Own Occupation Disability Insurance can only be purchased individually through one of six carriers: Ameritas, Guardian, MassMutual, Ohio National, Principal, and The Standard.
In addition, since you pay your own premiums with Individual Disability Insurance, the benefit comes to your income tax-free. Your Employer-sponsored group plan is taxable when your employer pays the premiums.
There are a handful of other important reasons you should hang onto your Ohio National Policy, but this alone should be reason enough. Feel free to post again if you have additional questions.
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|Asked: 11/11/19, 1:01 PM|
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|Last updated: 11/11/19, 1:08 PM|