Are There Recovery Benefits with Disability Insurance?

Financial Advice for Doctors

Disability Insurance is an important way to protect yourself and your family from going into an economic crisis in the event that you become disabled or ill. These insurance programs pay out a cash benefit while you are unable to work. However, if you are concerned about your ability to get back on your feet after you return to work, you may be interested in looking at a recovery benefit rider with your disability insurance. This will allow you to continue collecting a cash benefit while progressing through your recovery, even after you have returned to work. Whether you’re a pediatrician, dentist, or a plastic surgeon, disability insurance including recovery benefits is a great option to consider.

What Are Recovery Benefits?

It’s important to realize that it can take some time to rebuild your earnings after you’ve returned to work full-time following an accident, illness, or injury. That’s why it’s good to look for recovery options that will continue to pay your partial monthly benefit amount while you rebuild your income and your ability to work.

Recovery benefits are considered a residual disability benefit that is paid following a period of total disability. The employee will have returned to work on a full-time basis, but they may still be experiencing a loss of income as a direct result of the illness or debilitating injury. It is important to fully understand the benefit period that is available for recovery benefits, as having the least restrictive benefit will be essential in ensuring that your income is adequately protected.

If you are self-employed, consider the impact of closing your business for several months while you recover from an accident or illness. Even after you reopen your business on a full-time basis, your profitability is likely to have been reduced greatly. This loss of income after your period of total disability can continue on for months or years, and it may never return to the level that you experienced before your disability.

What is the Difference Between Total and Partial Disability?

Another important distinction to consider with recovery benefits is the difference between total and partial disability. Total disability refers to the inability to perform at least one of the material and substantial duties of your specialty, while partial, or residual, disability means that you are only able to work in a reduced capacity but still able to perform all the material and substantial duties of your specialty. This can lead to working partial days and only bringing in partial earnings.

Investing in disability insurance with residual benefits is a great way to protect yourself and your family.  If you are interested in discussing these options and how they might be able to benefit you, contact your physician insurance agency today.