Principal vs. Ameritas Disability Insurance: A Physician’s Guide

Nobody dreams about disability insurance over their morning coffee, but long-term disability insurance is essential for high-income professionals.A policy might be the only thing standing between you and financial disaster when you’re in a specialty where an injury or serious illness could derail your career.  As a physician, weighing your options for disability insurance among the “Big 5” disability insurance providers is smart.You’ll find own-occupation coverage (meaning you're covered if you can't do your specific job — not just any job) with varying benefit limits and policy riders.  Keep reading to see how Principal versus Ameritas disability insurance compares to find the right coverage for your needs.Principal vs.

Ameritas disability insurance: Quick comparison Here are some of Principal and Ameritas’ key policy details for quick reference but stick around for the nitty gritty details.PrincipalAmeritasDefinition of disabilityTrue own-occupationTrue own-occupationMaximum monthly benefitUp to $35,000(depending on occupation)Up to $30,000(depending on occupation)Benefit period2 years, 5 years, to age 65, to age 67 or to age 701 year, 2 years, 5 years, 10 years, to age 65 or to age 67Elimination period60, 90, 180 or 365 days30, 60, 90, 180, 365 or 730 days* *Available elimination periods are dependent on the chosen benefit period.To get a quick own-occupation quote from the top disability insurance companies, fill out the form below and SLP Insurance will reach out to discuss your needs.Or keep reading to learn how Principal and Ameritas match up — I've spent years working with both providers and’ll walk you through each option.

Get the best price on own occupation disability insurance SLP Insurance will find you the best price even if it's not with us.Fill out the form below to get discounts of up to 30%.Own-occupation disability coverage for Ameritas vs.Principal When comparing disability insurance carriers, high-income specialties need to focus on the policy’s definition of disability.

A weak, general definition of disability could prevent you from receiving disability benefits.But a strong definition, such as true own-occupation, will allow you to collect benefits if you’re unable to perform the specific duties of your medical or dental specialty — even if you can work in another capacity.Both Ameritas and Principal offer true-own occupation coverage.But each provider offers varying definitions of disability, so it’s important to pay attention to the exact details of the policy.

Ameritas’ definition of disability Ameritas offers three different definitions of disability for its DInamic Cornerstone Income ProtectionSM that was launched in 2023: Own-occupation (OO).Allows full benefits while working in another profession for the length of the benefit period.This is considered true own-occupation coverage.Own-occupation and not working (NW).

Provides disability benefits if you can’t work in your specialty for the length of the benefit period.But you can’t work in another role.Two-year own-occupation and then any reasonable occupation (P2).This hybrid definition allows you to receive benefits for the first two years you aren’t able to work in your specialty.

At completion, the definition of disability transitions to “any-occupation” for the remainder of the benefit period.Note that availability of definitions of disability will vary according to occupational class, issue age, benefit period and other factors.Related: Ameritas Disability Insurance Review Principal’s definition of total disability Principal offers two definitions of disability for its newest disability insurance product, called Principal® Income Protector: Total disability (and not working).This is considered its standard definition of disability and is automatically included at no cost.

To qualify, you must be unable to perform the duties of your own occupation and not be working.Total disability while working in another occupation (true own-occupation).This is an enhanced option that’s available for an additional cost.To qualify, you must be unable to perform the duties of your own occupation and not be working in your own occupation as determined at the start of your disability.

Both definitions provide flexibility to accommodate different needs.Related: Principal Disability Insurance Review Standout policy benefits: Ameritas vs.Principal comparison Long-term disability insurance isn't some off-the-rack suit you grab during a lunch break.It’s a custom financial product, tailored specifically to the contours of your career and lifestyle.  Even if two company policies look the same on the surface, certain built-in features and those à la carte policy riders you can add can mean the difference between merely surviving a disability and maintaining the life you've built.

Here are some key comparisons for Principal vs.Ameritas disability insurance options.Disability coverage limits Most long-term disability insurance allows for coverage up to around 60% of gross income, providing adequate coverage if you’re unable to work for an extended period of time.But for specialties earning $500,000 or more, this might be problematic depending on your lifestyle because carriers also have a maximum issue limit.

The maximum benefit amount for Ameritas and Principal is generally up to $20,000 per month.However, depending on the occupation class, some professions might be eligible for up to $30,000 in monthly benefits with Ameritas and $35,000 with Principal disability insurance.Note that both companies rate occupation risk separately, so it’s best to get quotes from both for comparison.Opportunities to increase coverage Both Principal and Ameritas recognize that as your career progresses, so does your need for additional disability coverage.

Ameritas offers a Benefit Increase Rider (BIR) or the Future Increase Option (FIO).Both riders allow you to increase your disability insurance coverage but in different ways.BIR is a no-cost rider that gives you the opportunity to increase your monthly benefit every three years or if you lose group long-term disability insurance.Whereas you can buy more coverage as your income increases with its FIO — but this rider comes with an additional cost.

In comparison, Principal’s Maximize Your Benefit (MYB) allows you to adjust your coverage as your income grows.It includes unlimited increases in the first three policy years, followed by the option to increase coverage for a major life event, substantial income increase (20% or more) or loss of group coverage.Principal’s MYB rider and Ameritas’ BIR rider are both free, but Principal’s rider has a bit more flexibility.Availability of guaranteed standard issue (GSI) policies Medical residents and fellows might have access to guaranteed coverage through a GSI policy, depending on their residency or fellowship program.

This type of coverage doesn’t require medical questions or an exam, which is great for anyone with a pre-existing medical condition.Ameritas is one of a few disability insurance companies that have partnerships with residency programs across the country, which means you might have access to a GSI policy if you’re a resident or fellow.But the moment you apply for an individual disability policy, you've essentially slammed the door on your GSI eligibility.Any insurance agent worth their salt will explore GSI opportunities before guiding you elsewhere.

Other considerations when comparing Principal vs.Ameritas disability insurance Here are some other areas of interest when comparing Ameritas and Principal: Flexibility with optional riders.Ameritas offers several unique benefits, including a benefit advancement for medical treatment expenses and reimbursement for COBRA premiums.Whereas Principal has the option for death benefits.

Financial strength ratings.Principal has an A+ AM Best rating, with Ameritas carrying an A rating.  Unique discounts.If you have several co-workers looking to sign up for disability insurance around the same time, Principal offers a multi-life discount.This can translate to a 20% savings on each person’s policy.

That’s just one example of how you can cut costs on disability insurance.Since individual disability insurance discounts vary, having an experienced insurance agent in your corner can save you serious money.Get own-occupation disability insurance coverage There's no universal “best” between Principal and Ameritas — it ultimately depends on your specific needs, profession and career stage.While both companies provide reliable coverage, Principal has an edge for certain high-income specialties who want maximum coverage.

But if you’re a resident or fellow looking for a GSI policy or more favorable pricing, Ameritas might be the better option.Here's my unvarnished advice after years in this game: work with an independent broker who isn't married to any single insurance company.You want someone who will compare the “Big 5” and guide you through which policy riders are needed versus which will increase your premiums without much benefit.SLP Insurance would love to be that resource for you! Fill out the quote form below, and I’ll hunt down all available discounts to get you the best price.

Compare disability insurance quotes and save SLP Insurance will find you the best price on own occupation coverage, even if it's not with us.Fill out the form below for a quote with up to 30% discounts.