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How Can You Afford Higher LTD Rates in a Tough Economy?

Cheaper isn’t better.

We live in an eBay world, looking for bargains, haggling over hotel room rates and airline fares, searching for coupon codes and BOGO specials. Everyone screaming let’s make a deal.

But is low cost insurance always a good deal? Insurance is a promise to protect you from an unexpected, and costly, event. It’s not an item you can use every day like a cell phone or soap. The quality of this promise is ultimately determined at claim time – when the promise is put to the test.

Choose carefully

If all insurance companies and policies were the same, the best bargain would be the cheapest policy. Same promise, cheaper price. But not all insurance companies or policies are identical. If you’ve ever had an insurance claim, you quickly learned that the policy language determines the outcome of your claim — not what you thought it said.

Many coastal homeowners with homes flooded by hurricanes discover their homeowner policies covered wind damage, but not flooding. So did hurricane-force winds cause a surge of water — or was it just simple flooding?

Language is important

With Group Long Term Disability (LTD) insurance, the value of the carrier’s promise and the language in the LTD policy are crucial to a disabled claimant who expects benefit payments to last perhaps 20, 30, or even 40 years. Your lifestyle is on the line.

For medical practices, Group LTD can be both a valued employee benefit and a supplemental income protection solution for physicians. Insurance agents often sell – and practices sometimes purchase — LTD plans based primarily on price, while failing to consider the quality of the insurance product or the policy language. This focus on cost can result in unforeseen catastrophic issues at claim time.

Would you buy an LTD policy that does not protect a physician’s ability to perform his or her daily procedures? A policy that forces a physician to train for another job – perhaps even outside the field of medicine?

Many practices buy these policies without knowing these and other limitations.

With LTD, price should not be the focus.

Cost-cutting concerns are real, but do physicians really want an LTD policy that may not pay them the benefit they expect (and need) if they become disabled? If a cheaper policy leads to an unhappy claims experience, who will take the blame?

"Give them the insurance physicians expect."

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Group life and disability insurance policies are underwritten by Sun Life Assurance Company of Canada (Wellesley Hills, MA) in all states, except New York, under Policy Form Series 93P-LH, 07P-LH-PT/07C-LH-PT, 12-STDPort-C- 01, 12-GPPort-P-01, 15-GP-01, and 16-DI-C-01.

In New York, group life and disability insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 13-GP-LH-01, 13-ADD-C-01-MGIS, 13-GP-LF-01, 13-LF-C-01-MGIS, 12-GPPort-P-01, 13-LFPort-C-01, 13- ADDPort-C-01, 15-GP-01, 16-DI-C-01 and 12-STDPort-C-01. The disability policies provide disability income insurance only. They do NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Insurance Department.

Administration for physician products is provided by Medical Group Insurance Services, Inc. (MGIS), in all states, except as follows: in CA by MGIS Insurance Agency, Inc.; in NY by MGIS Insurance Agency; in NC by Insurance Administration, Inc., d/b/a MGIS NC. Product offerings may not be available in all states and may vary depending on state laws and regulations.

GGEL-PHY-6906            SLPC 28523 07/17 (exp. 06/21)

© 2017 The MGIS Companies, Inc. | mgis.com

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