Statistics show you are never too young or too healthy to worry about disability: 1 out of 3 dentists will be disabled long enough to collect benefits at some point before retirement, and you're 5 times more likely to be disabled during your working years than you are to die before age 65.1 Furthermore, experience indicates that long term disability is the single greatest factor in mortgage foreclosures and personal bankruptcies for dentists. That's why it's so important to compare benefits and obtain the coverage that offers you the best protection. It's unlikely you'll find a disability plan this good — with rates this low — anywhere else.
The ADA Income Protection Plan offers exceptional disability coverage at rates that are significantly less than those of most competitors — as much as 30% to 40% less.2 By keeping rates this low, the ADA makes this important protection accessible to all members, even those who are just starting out. Features like "own occupation" coverage to age 65 and a voluntary rehabilitation program help make this Plan among the best available to dentists.
If you work at least 20 hours a week, this Plan can help protect your livelihood and safeguard your financial security in case of disability. This coverage even includes full long-term benefits for mental/nervous disorders, and limited benefits for disabilities resulting from alcohol, drug, chemical, or substance abuse.
One dentist says:
Less than two years out of dental school, a car crash landed me in intensive care and out of the office for nearly three months. I didn't have disability insurance back then, and the time off work nearly bankrupted me. As soon as I could, I bought as much disability insurance as I could qualify for. If a disability ever happened again, I wanted something to fall back on.
This Plan defines disability on an "own occupation" basis. Benefits are payable if an illness or injury renders you unable to practice in your special area of dentistry (including general dentistry or one of the ADA-recognized specialties). Your benefits aren't reduced just because you choose to work in another occupation — an important distinction that maximizes your potential to replace your pre-disability income.
Benefits can be paid on this basis until you turn 65 (or for up to 2 years if you're disabled between ages 63 and 70) — regardless of your age at the time of disability. This is an extremely generous provision, since many other plans that provide "own occupation" coverage will limit benefits to just a few years and then switch to a much more stringent "any occupation" definition of disability that makes it harder for you to qualify for benefits.
It's important to understand that the "own occupation" definition of disability determines when you are eligible to receive benefits, not how much you can collect or for how long. As long as you cannot work as a dentist due to disability, you would be considered disabled under this Plan.
With the ADA Plan, it's always your choice to pursue income from another occupation if you're totally disabled from dentistry. Whether you are capable of earning income from other occupations (like teaching, consulting, or sales) or choose to work as a way to stay mentally or physically active, your monthly disability income benefits will not be reduced because of income earned from another occupation. As long as you earn less than 20% of your pre-disability income from clinical dentistry (whether totally or partially disabled as defined by the Plan), you can be eligible for your full monthly benefit amount.
Unlike many policies, the ADA Plan does not have a special limit on benefits for disabilities resulting from mental and nervous conditions. This is an important factor for many dentists who shop around for disability coverage, and illustrates the ADA's commitment to providing the kind of coverage that is in members' best interests.
One dentist says:
Even though I'm disabled, I am able to teach 3 days a week. Still, the pay for part-time teaching is so low that I would never have been able to afford to do it without my Great-West Life disability insurance. I would have had to look for a better paying job just to put bread on the table.
What if you can return to work after a disability, but only on a part-time basis? This Plan includes residual disability benefits that can supplement your income when you return to dentistry less than 20 hours per week, or when you return to work for more than 20 hours each week but are unable to perform some procedures or other duties. Under the standard plan, you are eligible for residual benefits if you have returned to part-time work after having been totally disabled for the length of your waiting period. And with the Plan's Residual Plus option, you can qualify for residual benefits sooner, and even without ever being totally disabled.
If eligible for residual benefits, you can receive at least 50% of your full benefit amount for the first six months you are partially disabled. If your earnings from dentistry fall to 20% or less of what they were before your disability, then you can receive your full benefit amount.
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Your needs for income protection can be satisfied with as little as $400 or as much as $10,000 a month. You can apply for coverage that's about 60% of your net monthly earned income, taking into consideration any other disability coverage you have inforce or have applied for with another insurance carrier.
Why 60%? That's usually a good estimate of your take-home pay (after taxes) every month while working. Receiving that amount of monthly benefit means you won't likely suffer a dramatic drop in your after-tax income just because you're disabled and can't work. Under current tax laws, most Plan benefits are free of Federal income tax as long as you pay your premiums with personal funds.
If you become disabled, this Plan can help replace the income you earned previously as a practicing dentist. The monthly dollar amount (or benefit) you could receive will depend on several factors: the severity of your disability (total or partial), your monthly Income Protection coverage amount, any other disability income coverage you may have, and your net monthly income prior to disability.
Important note: Under the ADA Income Protection Plan, you will not be forced to work in another career. In other words, your eligibility for benefits will never be determined based on your capacity for work in another occupation. (See the purpose of disability income insurance to understand why.) Also, you will not be required to undergo rehabilitation for dentistry or any other occupation, and you can always voluntarily pursue another job as a way to generate income and/or stay active, without that income adversely affecting your eligible benefits under this Plan. Most importantly, the choice to pursue another occupation is entirely up to you: Even if you do pursue another career while disabled, you can change your mind at any time — no questions asked — and still be eligible for full benefits.
To keep your coverage even more flexible and affordable, you have a choice of four waiting periods: 180, 90, 60, or 30 days. This is the consecutive number of days you must be disabled before you will receive benefits. The longer the waiting period, the lower your premium.
To determine which waiting period might be right for you, consider how long you could survive on savings and other sources of income. For instance, the greater your nest egg or spouse's income, the more comfortable you might be in selecting a longer waiting period.
To make this Plan even more versatile, you have three more options to consider:
1. With the Residual Plus option, you do not first have to be totally disabled to receive benefits. Days of both total and partial disability count toward your waiting period, even if they are not consecutive. For example, with the Residual Plus option and a 90-day waiting period, you could qualify for partial benefits when you were totally or partially disabled for any 90 out of 180 days. Because of the added flexibility it provides, the Residual Plus option is considered indispensable by the ADA.
2. The Future Increase Option guarantees you future coverage increases with no medical exam. Coverage can be increased up to five times, $500 per year (for a maximum increase of $2,500), subject to the Plan's overall maximum of $10,000. Members under age 50 can apply for this option, and participants with the option can exercise these increases until age 55. Once you've elected this option, you will be reminded of your opportunity to exercise an increase election at every eligible renewal.
3. The Cost of Living (COLA) Option automatically increases your benefit payments to keep pace with increases in the cost of living, in the event your total disability lasts longer than 12 months. Considered an "inflation fighter" feature, annual benefit adjustments are based on increases in the Consumer Price Index, and are particularly beneficial for long-term disabilities that extend for several years or even decades. Applicants under age 50 are eligible to apply for this option.
Throughout your career, you can enjoy the peace of mind that comes with your ADA Income Protection Plan — all the way to age 70. The only qualifications for renewal are that you continue to work at least 20 hours a week, remain an ADA member, and pay your premiums when due. Note: Disabilities that occur after you turn 65 but before you turn 70 are eligible for up to 2 years of "own occupation" benefits.
Rest assured that this disability coverage will be there for you as long as you need it. The insurer, Great-West Life, cannot terminate the master policy. In the unlikely event that the ADA terminates the master policy and does not offer a replacement, Great-West Life will continue the same coverage amounts you held under the ADA group contract, with rates based on your age group.
The ADA Income Protection Plan offers generous coverage amounts, a number of useful options, and one of the strongest "own occupation" provisions available to dentists. An at-a-glance Plan overview can help you easily identify our Plan's key features. We also encourage you to compare the ADA Plan to any other disability income policy you may be considering — you just might find (like thousands of other dentists) that the ADA Income Protection Plan offers the greatest overall value.
Disability insurance can vary widely, and it's smart to shop around to find coverage that best meets your needs. When you compare disability income policies, ask the following highlighted questions to understand a policy's provisions in a number of areas. Click on each individual question to learn how the ADA Income Protection Plan would answer the question. You can also view all ADA Plan provisions or hide all answers as desired.
1Odds of disability determined by Great-West Life in 2005 after studying years of disability claims by ADA members. Comparison between odds of disability vs. death cited by Disability-Insurance-Center.com, 2005.
2Rate comparisons based on independent research conducted by Great-West Life in 2005.
Please check Legal Notices for additional information pertaining to this Plan.