Good grief. Doctors need better financial advisors. Talked to a surgeon recently. He's in a group practice. They have good group long-term disability insurance - pays up to $10k a month. The partners are all making good money. But.....the guy I'm talking to has a progressive disease that will eventually take him out of the operating room and reduce or eliminate his income within a few years.
The practice beancounters find LTD insurance that is "cheaper," so they switch. The problem is no one really understands what they bought.
I understand it the minute I read it.
By switching policies without asking the right questions they have (1) reduced the monthly benefit to $5k and (2) created a massive preexisting condition problem for this doctor. "Maybe" we can work around that but we won't be able to work around the reduced $$$'s.
Of all of the different insurance policies that professionals buy, the least expensive is group LTD. It's also the last coverage to cheap out on.