Long Term Disability Insurance

We are currently looking into adding a Long Term Disability (LTD) policy to the list of benefits for physicians. We realize that since SDA has not provided a LTD plan previously, many of you have individual plans now. We want to get your input regarding the type of plan being reviewed and if you feel this would or would not be beneficial for you.

Major Plan Elements:

This benefit is a group plan (75% participation required) which can be individually selected and which provides long term disability protection to a maximum monthly benefit of $10,000 to age 65 after the physician has been disabled for 90 days. It does NOT require evidence of insurability. Since it is a group plan, it is not portable. Other features include:

1. An initial rate guarantee of 2 years

2. Rehabilitation Services are paid for

3. Definition of Total Disability for physicians is the inability to perform the material and substantial duties of his or her own specialty for the entire benefit period.

Cost: Projected monthly premium for benefit of $10,000 and 90 day waiting period = $300 per month for all ages.

Tax Issues:
If paid for by SDA: Disability benefit is taxable
If paid for by the physician: Disability benefit is not taxed

Integration of Benefits:
Benefit is offset by social security benefit. In general, this plan is not integrated/offset by other individual plans. However, some individual plans require integration. You need to review your individual plan to determine if it requires integration.