Why You Have a 65% Decrease Likelihood of Being Declined for Incapacity Insurance coverage (If You Use a WCI-Accredited Agent)
By Dr. Jim Dahle, WCI FounderThe WCI employees is aware of there may be nothing that bothers me greater than a suggestion that we’re promoting out docs. Whereas The White Coat Investor is a profitable, for-profit media firm with a plethora of conflicts of curiosity (which we totally disclose annually), its homeowners have had no use for its earnings for a very long time. Whereas we undoubtedly nonetheless spend a few of these earnings and save a bunch of them, making extra money would not get us up within the morning. The WCI mission does.
Our imaginative and prescient is:
“To function essentially the most trusted, authoritative, and helpful useful resource for monetary info and providers for docs and different excessive earners.”
Not solely is being reliable the suitable factor to do, however we all know your belief is our most useful asset. So, we by no means do something deliberately that will decrease that belief stage.
Incapacity Insurance coverage Declines Get Me Fired Up
I hate seeing docs get declined after they apply for incapacity insurance coverage. It isn’t essentially a monetary disaster, as a result of two issues must occur for a monetary disaster to happen. First, you must not get incapacity insurance coverage (both since you did not trouble or since you could not), after which you must truly get disabled when you nonetheless want that insurance coverage. I spend a variety of effort and time telling docs to purchase incapacity insurance coverage. We additionally spend a variety of effort and time educating docs and dealing with insurance coverage brokers and the insurance coverage firms themselves to attempt to scale back the variety of declines. And for individuals who don’t have any selection, we enable you to to not want that incapacity insurance coverage as shortly as potential.
Declines do occur, after all. And each time I hear about one which occurred to a doc working with one among our advisable brokers, we dive into it and take a look at to determine what occurred. The standard story is that the physician “didn’t disclose” a related medical situation to the agent doing the applying. I do not suppose most docs are intentionally mendacity. I believe they often suppose their “medical situation” is a nothing-burger and that there isn’t any manner the insurance coverage firm—a lot much less the agent—would care, even when they one way or the other miraculously came upon about it.
What these docs uncover, typically too late, is that the insurance coverage firm underwriters care much more about their nothing-burger than they (and their doctor) do and that the underwriters have entry to much more knowledge than they thought (like prescription data). Both manner, a tragedy could consequence. That tragedy could be truly getting disabled with out ever getting incapacity insurance coverage. It may also simply be that they might have been eligible for a Assured Customary Subject (GSI) coverage with out that decline.
Extra info right here:
Why You Want Incapacity Insurance coverage (and I Want Shoulder Pads)
The Doctor’s Information to the Finest Incapacity Insurance coverage Corporations
What We’re Doing to Scale back Declines
Our method has been two-fold.
First, we educate our group how you can purchase incapacity insurance coverage. Purchase it early earlier than you develop medical issues. Be trustworthy with the agent and on the applying. Suppose arduous about any previous medical historical past you have got had so you do not neglect something. If there is one thing, have the agent store you round to underwriters informally earlier than making use of. If it seems there may very well be a difficulty with a decline, see in case you’re eligible for a GSI coverage by means of your establishment. It may not be fairly pretty much as good or as low cost as a completely underwritten coverage, however you may have protection.
Second, we companion with essentially the most skilled brokers of the best integrity we are able to discover and emphasize to them how essential it’s to us that they get as few declines as potential. They ask a variety of medical screening questions. They store your case round informally to the varied insurance coverage firm underwriters. They refer you to an applicable GSI-providing agent when applicable, even when meaning (because it usually does) that they do not get paid a fee for the coverage sale.
As mentioned in our state of the weblog posts, WCI even began an insurance coverage company some time again. We do not promote any insurance policies immediately, however this construction permits us to receives a commission pretty for referrals to our partnering brokers. It additionally permits us entry to sufficient knowledge to verify WCIers are being handled proper. These efforts have actually paid off; WCIers have by no means been handled higher by the brokers we discuss with than they’re now. The truth is, the information reveals that docs are far much less more likely to get a decline in the event that they use a WCI-recommended agent. That is not as a result of the brokers one way or the other therapeutic massage the applying and get insurance policies for individuals who should not be insured. It is as a result of they prioritize the suitable coverage for the suitable physician.
Generally, that entails promoting them a completely underwritten coverage. Generally, meaning referring them out the door (usually with their fee) for a GSI coverage. Generally, meaning methodically making use of to the corporate that’s most probably to not decline them.
How a lot much less seemingly are you to be declined by utilizing a WCI-recommended agent? The reply is 65% much less seemingly. That is large. The decline charge for our brokers is just 7%.
Do not get me flawed. I might prefer to see it decrease. We’ll proceed to work arduous each with our group and our companions to get it decrease. But it surely is not going to go to 0%. Medical doctors will proceed to “fail to reveal.” New medical situations will proceed to point out up on the bodily and lab exams. Candidates with out entry to a GSI coverage (or who have already got one) will proceed to take an opportunity on a completely underwritten coverage.
Extra info right here:
Why Do Some Medical doctors Get Declined for Incapacity Insurance coverage?
Can You Nonetheless Get Incapacity Insurance coverage with Your Well being Historical past?
Hammered on Social Media
You possibly can think about my frustration when, regardless of all of those efforts, I nonetheless see feedback on social media that counsel we’re one way or the other promoting out docs on the subject of incapacity insurance coverage. Generally, they’re from a physician who simply bought declined and is understandably upset. Generally, they’re from somebody who competes with us on some enterprise line or companions with one among our opponents. Listed here are a few examples:
“Can we speak concerning the incapacity insurance coverage rip-off white coat investor is at the moment pushing? Creating their very own insurance coverage company to piggy again fee and solely pushing medically underwritten plans over GSI plans as a result of they had been banned from GSI on precept (sic)/guardian/and so on. Even on the expense/inexperience of the physicians who belief their platform for recommendation.”
This one turned out to be written by a doc who “didn’t disclose” however who was apparently unaware that WCI created an insurance coverage company and determined it needed to be a “rip-off.” He was definitely mistaken that we “solely push medically underwritten plans over GSI insurance policies.” And he has no thought what he’s speaking about with “bans.” Insurance coverage firms typically require an agent to ONLY present choices from their firm in the event that they need to receives a commission to promote GSI insurance policies to members of a given establishment. We do not suppose that is the suitable method, so we (and our advisable brokers) are keen to forgo these commissions, when required, so we are able to present all of the choices.
This is one other one from a competitor.
“I’m all for people being profitable. I wanna generate profits too. All of us do and may. However I’m sick and uninterested in manufacturers like WCI and ***** doing a half-assed job as they’ve drifted into the doctor incapacity insurance coverage house. Oh and I’ve had personal conversations with each of those guys and but the issues persist. They lack expertise, haven’t taken the time to develop essential relationships with the insurance coverage firms and fellow businesses (and subsequently are largely unable to entry the GSI market), and are very quote engine pushed. You already know what that leads to? Too quick of a course of and never taking the time to do it proper. And statements like: ‘GSI is simply too costly, most individuals don’t want it anyway.’ . . . Inform that to . . . physicians [who have] been denied protection by means of a completely underwritten coverage software, though they’re at a program that OFFERS A GSI! (A GSI means they may’ve gotten protection with 0% likelihood of denial for medical causes) . . . However don’t suck on the job you’re taking over!! Individuals gotta know what they’re doing so docs don’t get damage when it may be prevented!
The publish included this graphic:
That graphic fired me up. I hope it fires you as much as see it. I despatched it off our employees to determine what our decline charge is. Seems it is nowhere close to 19%. It is 7%. That is 65% decrease. Dramatically higher. Nonetheless room for enchancment? Positive. However that quantity is not going to 0%, and it might by no means get a lot decrease than 7%. Our partnering brokers ought to really feel very pleased with 7%. I am pleased with them, and I hope you’re, too.
We hardly “drifted” into the doctor incapacity house. We most likely refer extra docs for incapacity insurance coverage than anybody else, and we’ve been doing so for greater than a decade. Our partnering brokers are a number of the top-selling brokers within the incapacity insurance coverage trade. They definitely do not lack expertise. Whereas we won’t at all times receives a commission to promote a GSI coverage, we’ll nonetheless refer you to get one whether it is applicable for you.
A Assertion
We determined to place out a proper, public assertion on this matter. Right here it’s:
“There’s been loads mentioned not too long ago about how incapacity insurance coverage is being dealt with, significantly at White Coat Investor. Let’s clear it up with info, integrity, and knowledge.
We’ve spent years incomes the belief of the doctor group, and we take that duty critically. We won’t compromise that belief.
We’ve partnered with high brokers within the incapacity insurance coverage trade, people who know this house higher than anybody and are aligned with our mission. Each agent we recommend has been totally vetted. We’ve made modifications over time to be sure that white coat buyers are being served properly by the brokers we companion with, and we’ve even eliminated brokers from the platform as required.
Some have questioned why we’re not collaborating immediately in additional Assured Customary Subject (GSI) applications immediately. This is why: Many GSI applications require exclusivity, which means brokers can solely present insurance policies from one firm to their purchasers, no matter whether or not it is the perfect match for the physician. That doesn’t align with our mission.
At WCI, our dedication is to point out all the foremost carriers, educate with out bias, and assist every doctor make the perfect choice for his or her particular person scenario, whether or not that’s GSI or totally underwritten. And if the suitable name is to ship somebody to a GSI program that we don’t get compensated for, we’re 100% OK with that. That’s the dedication we’ve made to the WCI group.
The truth is, we’ve given up a whole lot of circumstances to GSI applications simply within the final yr for the sake of doing what’s proper.
We need to keep away from declines, and that begins with transparency. Thorough medical questions are a regular a part of the method with our vetted brokers, not a uncommon exception. In some circumstances, brokers have recognized {that a} totally underwritten coverage was essentially the most applicable choice based mostly on the applicant’s disclosed circumstances. Sadly, there have been conditions the place candidates didn’t disclose medicines or pre-existing situations, which led to modifications or declines throughout underwriting. These outcomes weren’t the results of agent error however relatively incomplete disclosure by the applicant, they usually had been fully avoidable. Dr. Dahle has written extensively about this, emphasizing that full honesty within the software course of is vital. Whereas GSI isn’t at all times obtainable, integrity and transparency at all times are. We stay totally dedicated to each.
Our decline charge is just 7%, in comparison with an trade common of 19% throughout the foremost carriers, roughly 65% decrease. That’s not as a result of we’re getting medically uninsurable candidates accredited. It’s as a result of we ask the suitable medical questions up entrance and assist candidates select the perfect path ahead. We consider in giving individuals selections, not pushing one path. By understanding every applicant’s scenario early and guiding them accordingly, we scale back surprises and enhance approvals. And we’re nonetheless enhancing, working to decrease that quantity even additional by means of higher screening and smarter processes.
This isn’t a aspect hustle for us. It’s not a quantity recreation. It’s a long-term dedication to serving to physicians defend their revenue and households the suitable manner.
We consider there’s room on this house for all professionals who genuinely care about serving to physicians defend their revenue. The extra voices educating on the significance of incapacity insurance coverage, the higher. Our focus stays on serving docs with readability, integrity, and respect, and we hope others share that very same dedication to elevating the dialog and placing physicians first.
We don’t reduce corners. We don’t disguise the high-quality print. We don’t play favorites with carriers. We do what’s proper, even when it prices us financially.
That’s the usual we maintain ourselves to, and that’s what docs deserve.
Sincerely,
Dr. Jim Dahle, Brett Stevens, Travis Christy
White Coat Investor — White Coat Insurance coverage Companies
This is the underside line. In case you want incapacity insurance coverage, purchase incapacity insurance coverage. Now. If you’d like essentially the most skilled brokers with the best integrity that may be discovered, we propose you begin at https://www.whitecoatinvestor.com/insurance coverage. Be trustworthy with them and in your software. Strategize with them as to the perfect coverage for you. Tell us (ideally privately) once we allow you to down, and we’ll proceed to enhance.
What do you suppose? Did you purchase incapacity insurance coverage? Why or why not? Did you ever have to make use of yours?
