RuralER/Ortho Posted July 20, 2016 Share Posted July 20, 2016 I am looking into an "own occupation" disability policy. My thoughts as to why I may need this is both fields that I am in are very hands on dependent. Losing my dexterity for whatever reason would have the possibility of causing me to no longer be able to work or work in less procedure dependent specialties which may pay less. Has anyone investigated this? Some of it seems very "scammy." I also touched base with my homeowners insurance company and they only replace your income for 2 years... in my eyes that's a pointless policy. Thoughts? Thanks! Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 20, 2016 Share Posted July 20, 2016 Going to be hard to find. Most disability policies disqualify if able to work in general (WallyWorld greeter for example). I got in at the end with my own disability policy that is specific for my chosen profession (loss of hearing for example). I've had it for over twenty years I would guess. Link to comment Share on other sites More sharing options...
DogLovingPA Posted July 20, 2016 Share Posted July 20, 2016 I have a long term disability policy through Ameritas that covers me if unable to work as a PA in general (is not specialty specific). Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 20, 2016 Share Posted July 20, 2016 I have a long term disability policy through Ameritas that covers me if unable to work as a PA in general (is not specialty specific). Out of curiosity, how long have you had it? Link to comment Share on other sites More sharing options...
Arthropathy Posted July 20, 2016 Share Posted July 20, 2016 I have own profession as a rider on my general disability policy, I think the rider is like <$100/year Link to comment Share on other sites More sharing options...
DogLovingPA Posted July 20, 2016 Share Posted July 20, 2016 Out of curiosity, how long have you had it? Three years now. It was arranged through my financial planner (I don't have room in my brain for this sort of stuff) so I believe I get some sort of "group" deal. I pay ~$160/month for a pay out of ~$4500/month if I should be unable to work as a PA. This is strictly long term disability - I have no short term policy. Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 21, 2016 Share Posted July 21, 2016 PM sent. Link to comment Share on other sites More sharing options...
Moderator ventana Posted July 21, 2016 Moderator Share Posted July 21, 2016 Guardian/Berkshire Life Has own profession own speciality disability Not cheap, but worth it. Had it since becoming a PA, almost 15 yrs ago... Link to comment Share on other sites More sharing options...
RuralER/Ortho Posted July 21, 2016 Author Share Posted July 21, 2016 Thanks everyone! Appreciate the input. Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 21, 2016 Share Posted July 21, 2016 FYI, if you pay premium yourself you're eligible for up to 70% replacement income. If employer pays on your behalf, only 60% reimbursement. Mine is $261/mo for $4540/mo max. split between two policies, one of which was an increase in initial coverage. This would replace 54% of my gross monthly income. When you take out having to pay employment taxes and income tax on earned income, and if YOU make the premium payment with after-tax income, this increases the replacement income to 81% (54%+7.65%+19% actual Fed tax rate) of original gross, only 4% less than when working. This does not include SS payments for disability, if one could convince them that you were actually disabled. Link to comment Share on other sites More sharing options...
Moderator ventana Posted July 21, 2016 Moderator Share Posted July 21, 2016 FYI, if you pay premium yourself you're eligible for up to 70% replacement income. If employer pays on your behalf, only 60% reimbursement. Mine is $261/mo for $4540/mo max. split between two policies, one of which was an increase in initial coverage. This would replace 54% of my gross monthly income. When you take out having to pay employment taxes and income tax on earned income, and if YOU make the premium payment with after-tax income, this increases the replacement income to 81% (54%+7.65%+19% actual Fed tax rate) of original gross, only 4% less than when working. This does not include SS payments for disability, if one could convince them that you were actually disabled. summary if you pay premiums with after tax money the income is tax free if you pay premiums with before tax money, it is taxed.... Link to comment Share on other sites More sharing options...
ajnelson Posted July 26, 2016 Share Posted July 26, 2016 One of my ED docs had a policy like this. She ended up having a retinal detachment (and is legally blind in one eye now) and it has really prevented her from getting back in the ED. She can do other work as a doc, but not EM, so she can claim this and still work doing other stuff. Her advice...expensive but best investment she ever made. Link to comment Share on other sites More sharing options...
Moderator True Anomaly Posted July 26, 2016 Moderator Share Posted July 26, 2016 One of my ED docs had a policy like this. She ended up having a retinal detachment (and is legally blind in one eye now)?and it has really prevented her from getting back in the ED. She can do other work as a doc, but not EM, so she can claim this and still work doing other stuff. Her advice...expensive but best investment she ever made. Good to know- my wife, an ED doc as well, was able to get a policy for disability for practice as an ED doc specifically before she finished residency, so was obtained at a cheaper rate than had she been a full attending. I agree- it's still expensive Link to comment Share on other sites More sharing options...
ajnelson Posted July 26, 2016 Share Posted July 26, 2016 Good to know- my wife, an ED doc as well, was able to get a policy for disability for practice as an ED doc specifically before she finished residency, so was obtained at a cheaper rate than had she been a full attending. I agree- it's still expensive It's something I've been meaning to invest in. Just keep putting it off. But, really, it doesn't take much to put us out of work Link to comment Share on other sites More sharing options...
kittryn Posted July 28, 2016 Share Posted July 28, 2016 FYI, if you pay premium yourself you're eligible for up to 70% replacement income. If employer pays on your behalf, only 60% reimbursement. Mine is $261/mo for $4540/mo max. split between two policies, one of which was an increase in initial coverage. This would replace 54% of my gross monthly income. When you take out having to pay employment taxes and income tax on earned income, and if YOU make the premium payment with after-tax income, this increases the replacement income to 81% (54%+7.65%+19% actual Fed tax rate) of original gross, only 4% less than when working. This does not include SS payments for disability, if one could convince them that you were actually disabled. aren't your payments for the plan also tax-deductible? sounds like a pretty specific work-related expense...you could get a bigger tax refund now if you start claiming it as a business expense (which it clearly is!). Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 28, 2016 Share Posted July 28, 2016 I don't itemize since I no longer have a mortgage thus no mortgage interest to deduct. Property tax deduction and other incidentals go by the wayside as well. I'm in a position as an employee, not IC. If a 1099 IC then yes, this as well as health insurance are deductible. Link to comment Share on other sites More sharing options...
DogLovingPA Posted July 28, 2016 Share Posted July 28, 2016 Directly from irs.gov: "You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability" Link to comment Share on other sites More sharing options...
kittryn Posted July 28, 2016 Share Posted July 28, 2016 I don't itemize since I no longer have a mortgage thus no mortgage interest to deduct. Property tax deduction and other incidentals go by the wayside as well. I'm in a position as an employee, not IC. If a 1099 IC then yes, this as well as health insurance are deductible. you don't have to be a 1099 to itemize, you can always file an itemized return. Link to comment Share on other sites More sharing options...
kittryn Posted July 28, 2016 Share Posted July 28, 2016 Directly from irs.gov: "You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability" really?? that's strange..... Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 29, 2016 Share Posted July 29, 2016 Directly from irs.gov: "You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability" Stand corrected. Bottom quarter of page. https://www.irs.gov/publications/p535/ch06.html#en_US_2015_publink1000208842 Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted July 29, 2016 Share Posted July 29, 2016 I don't itemize because I don't have enough deductions to offset the standard deduction. Anyone can itemize; for most the deduction amount doesn't exceed the standard deduction. I would have to have catastrophic family medical expenses to allow for itemization. Link to comment Share on other sites More sharing options...
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