Group Disability Insurance for Veterinarians in Canada

Veterinary medicine is one of the most physically and emotionally demanding professions. The hard work and stress of caring for animals, running a practice, and managing staff can take a significant toll. This makes having adequate group disability insurance critically important.

This combination of physical injury risk and mental health challenges makes disability an ever-present concern for veterinarians. Having adequate disability insurance through an employer or association or purchased individually is crucial.

Group disability insurance available through a vet association or employer is an affordable way for veterinarians to secure essential disability benefits in case an illness, injury, or mental health issue leaves them unable to work.

This comprehensive guide will provide a detailed overview of group disability insurance for veterinarians in Canada. We’ll explain how it works, the advantages and limitations compared to individual policies, how to determine the right amount of coverage, where to obtain it, and what’s involved in making a claim.

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Understanding Group Disability Insurance for Veterinarians

What is Group Disability Insurance and How Does it Work for Vets?

Group disability insurance provides disability income protection to a group of people, like the veterinarians and staff of a veterinary clinic or hospital. If an insured vet cannot work due to an illness, injury, or other disability, this insurance replaces a portion of their income, usually around 60-70%.

Benefits are typically structured as short-term disability (STD) and long-term disability (LTD) coverage. STD covers temporary disabilities lasting anywhere from a few weeks to 6 months. LTD protects against more serious disabilities lasting for many months or even years.

Premiums for group disability insurance tend to be lower than individually purchased policies. This is because the risk is spread across the entire group of insured employees. Many employers pay for some or all of the premiums for group disability insurance as part of the overall benefits package offered to employees.

Learn more: Long Term vs Short Term Disability Insurance in a Group Plan

What Does Group Disability Insurance Cover for Veterinarians?

Group disability insurance helps replace a portion of your salary if an illness, injury, or accident leaves you unable to perform your occupational duties as a veterinarian.

Short-term disability (STD) policies begin paying benefits after a short waiting period, usually 7-14 days. Benefits typically continue for up to 6 months, depending on the duration of the temporary disability. This protects you against loss of income from short-term health issues, surgery, or minor injuries.

Long-term disability (LTD) coverage starts after short-term benefits end or after a longer waiting period, such as 90 or 180 days. LTD benefits continue for the policy’s defined benefit period, ranging from 2 years to age 65 depending on the specific insurance contract. This protects you in case of disabilities lasting for an extended period or permanently.

Most group LTD policies pay around 60-70% of your gross monthly pre-disability salary, up to a set maximum monthly benefit such as $10,000. Benefits are paid as long as your disability prevents you from performing your regular duties as a veterinarian.

Source: https://briansoinsurance.com/short-term-vs-long-term-disability-insurance/

Typical group LTD policies pay this “regular occupation” benefit for 2 years. After 2 years, the definition usually changes to “any occupation.” This means you must be unable to perform any job duties to continue receiving the LTD benefits.

How Much Group Disability Insurance Do Veterinarians Need?

The appropriate amount of disability insurance coverage you need depends on several factors:

• Your current income and monthly expenses
• The income of a spouse or partner if you are in a dual-income household
• Your existing savings that could provide income if you became disabled
• Other disability income sources you may have, like auto insurance or Canada Pension Plan disability benefits
• The costs of potential medical treatment for your disabling condition
• Your age, years to planned retirement, and the policy’s benefit period

Still, your specific needed amount should be based on a careful analysis of the income required to maintain your standard of living during a disability.

As a general guideline, disability insurance aims to replace 60-80% of your pre-disability take-home income. However, group LTD policies may provide less than this target due to monthly maximums. Individual LTD policies can supplement to increase the overall coverage.

Learn more: https://www.ltdlawyerontario.com/blog/short-term-disability-and-long-term-disability-benefits-for-canada-post-employees/

Comparing Group and Individual Disability Insurance for Veterinarians

Group disability insurance available through your employer or vet association provides an affordable baseline of coverage. However, there are some advantages to individual disability policies purchased through an insurance broker, as well. Let’s compare the key pros and cons.

Pros of Group Disability Insurance for Veterinarians

• Lower premiums compared to individual policies thanks to risk pooling across the insured group
• Easy enrollment, with limited medical underwriting and questionnaires in most cases
• Premiums are often paid in whole or part by the employer or association
• Access to both short-term and long-term disability coverage
• It provides at least some protection, which is better than being completely uninsured

Cons of Group Disability Insurance for Veterinarians

• Benefits may be considered taxable income if the employer pays any portion of the premiums
• Potentially lower maximum monthly benefit amounts than individual coverage
• Loss of coverage if you leave or are terminated from the job or group
• Less control over specific policy terms compared to individual DI
• Limits on the duration of the “regular occupation” definition, often only 2 years

Pros of Individual Disability Insurance for Veterinarians

• Typically higher maximum monthly benefit amounts are available
• Longer durations of the “regular occupation” definition, often to age 65
• Portable coverage that stays with you regardless of employer or association
• Premiums are paid with after-tax income, so benefits received are tax-free
• Added flexibility to customize the policy to your needs

Cons of Individual Disability Insurance for Veterinarians

• Undergo medical underwriting, which can be a lengthy process
• No risk-sharing, so premiums are higher than comparable group insurance
• Responsible for paying the total premiums yourself
• Pre-existing medical conditions may be excluded from coverage
• More likely to have restrictions or limitations for mental health claims

Should Veterinarians Have Both Group and Individual Disability Insurance?

Many insurance experts recommend having both group and individual disability insurance coverage for the most comprehensive long-term disability protection.

The group DI provides an affordable baseline or foundation of essential benefits. Meanwhile, the individual DI policy allows you to supplement the group LTD in needed areas like boosting your monthly benefit and extending the regular occupation definition duration.

For instance, if your group LTD policy has a low monthly maximum benefit like $5,000 per month, you could purchase an individual LTD policy to increase the total protection to a level that adequately replaces your pre-disability take-home income, such as 70%.

An individual policy also enables you to extend the more favourable “regular occupation” definition past the typical two-year limitation in group LTD plans. This ensures you continue receiving benefits if you cannot perform your duties as a veterinarian, even if you are technically able to work another job.

Group and individual disability insurance ensures continued protection regardless of changes in employers, associations, or health status. The individual coverage means you’ll still be insured if you later develop medical issues that make individually qualifying for disability insurance difficult.

Finding the Right Group Long-Term Disability Insurance for Your Veterinary Practice

Factors to Consider When Evaluating Group LTD Plans for Vets

If your clinic or hospital is considering group long-term disability insurance, there are several important factors to evaluate:

• Monthly Benefit Amount: The percentage of pre-disability income replaced, often 60-70%, and the maximum monthly dollar cap. High earners may exceed caps.
• Definition of Disability: Does it change from “own occupation” to “any occupation”? If so, when?
• Waiting Period: The number of days out of work before benefits begin (90, 180 days).
• Benefit Period: The maximum duration benefits will be paid (2 years, 5 years, to age 65, etc).
• Exclusions: Illnesses, mental health issues, or pre-existing conditions that may be excluded.
• Own Occupation Rider: Allows full benefits even if able to work another job.
• Optional Riders: Residual/partial disability benefits, cost of living adjustments (COLA), etc.

Where Can Veterinarians Get Group Long-Term Disability Insurance?

There are several potential options for obtaining group LTD coverage:

• From your current employer if they offer group LTD as part of your existing benefits package
• Through your provincial veterinary medical association if you are a member. For instance, the Ontario Veterinary Medical Association.
• By forming an association captive insurance company with other veterinary practices in your province to self-insure.
• Through a traditional insurance carrier that offers group long-term disability insurance to companies. An insurance broker can provide quotes based on your firm’s workforce demographics and desired plan design.

How Much Does Group LTD Insurance Cost for Vets?

For group policies, the monthly premium costs vary based on several factors:

• The maximum monthly benefit amount and income replacement percentage
• Length of the waiting period before benefits begin
• Duration of the maximum benefit payment period
• The “regular occupation” definition duration
• Industry and occupational risks associated with veterinary medicine
• Average age and gender of the workforce being insured

To determine specific rates, an employee benefits broker can provide quotes tailored to your practice’s details.

Making a Group Long-Term Disability Insurance Claim as a Veterinarian

When Can a Veterinarian File a Group Disability Insurance Claim?

The ideal timing for making a group LTD claim depends primarily on the waiting period or “elimination period” specified in the policy. This is typically either 90 or 180 days for group LTD coverage. Making a claim before the waiting period risks denial since the insurer will argue that you aren’t yet technically eligible based on the contract terms.

However, you need more income for an extended duration. Therefore, filing a claim should be timed appropriately based on factors such as:

• Missing multiple weeks of work with limited improvement in your medical condition
• Being unable to perform many of the core occupational duties of a veterinarian
• Having to cut back your weekly hours or workload by 50% or more
• Experiencing a 20-50% or more significant loss of monthly income due to missing work

Consulting with your treating physician and an experienced group disability insurance lawyer can provide guidance regarding when to submit your group LTD claim.

What’s the Group Disability Insurance Claims Process for Veterinarians?

The standard process for filing a group LTD claim is:

• Obtain the required disability claim forms from your employer or the insurance company. There will be sections for you and your doctor.
• Have your physician complete their section, comprehensively documenting your medical condition, treatment, limitations, and disability duration.
• You complete your sections of the forms, providing details of your occupational duties, disability onset date, income documentation, and more.
• Compile and submit the full claim forms along with supporting medical evidence to the insurance company claims department.
• The insurer will review your claim submission and request any other additional information they deem necessary.
• After their review is complete, the insurance company will approve or deny your claim. Even approved claims require providing periodic updated medical proof that you remain disabled under the policy terms.

How Can Veterinarians Appeal a Denied Group Disability Insurance Claim?

If the insurance company denies your group LTD claim, all policies allow you to file an appeal requesting further review and reconsideration. Handling the appeal process yourself can be challenging. Consulting a lawyer experienced in disability insurance claims is recommended to improve your odds of getting the denial overturned on appeal and getting your benefits approved.

In the appeal, your disability insurance lawyer will thoroughly review your claim file and contract, gather additional supporting medical documentation, and create a strong written appeal arguing that you clearly meet the policy’s definition of disabled. Taking the insurance company to court over a denied claim is also an option if the claim denials are upheld through the insurer’s appeal process.

Frequently Asked Questions About Group Disability Insurance for Vets

Here are answers to some common questions veterinarians have about obtaining group disability insurance:

Conclusion: Key Takeaways for Veterinarians on Group Disability Insurance

Below are some key concluding takeaways for veterinarians considering group disability insurance:

• Having adequate disability coverage is essential, given the occupational injury and mental health challenges frequently faced by veterinarians and veterinary staff.
• Group policies offer affordable short-term and long-term disability protection, with premiums subsidized by risk-sharing across the insured group.
• Individual DI policies can supplement group coverage to provide higher monthly benefits and desired features like “own occupation” definitions.
• Take time to understand the details of any group LTD policy including definitions, waiting periods, exclusions, limitations, and optional riders.
• Work with an experienced broker to review your coverage and make individual policy recommendations to address potential gaps.
• Disability claims should be timed carefully, and denials should be appealed with skilled legal assistance.

The physical and mental demands veterinarians face make disability an ever-present concern throughout their careers. Having adequate insurance allows peace of mind should health issues ever arise. We hope this guide provides a detailed overview of the available group disability insurance options to consider.

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Article Sources

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AVMA LIFE: Life & Disability Insurance for Veterinarians – avmalife.org
Disability Insurance for Veterinarians – mgis.com
CVMA Long-Term Disability – westernfinancialgroup.ca