AANA Disability Insurance vs. Individual CRNA Disability Insurance
This post was originally published November 17, 2016. Updated May 20, 2023.
As a CRNA, should you choose an individual or the AANA disability insurance policy.
CRNAs in their 20’s and 30’s tend to choose the association policy because of the cost. It is less expensive than an individual policy.
However, there are ways to help reduce the cost for CRNAs in your 20s and 30s. Some companies offer graded, increasing rates. This can save you significantly. You may also trim your policy and not include some riders such as a COLA, cost of living rider. Also, look for discounted rates that can save you significantly.
When CRNAs turn 40, they are in for sticker shock with the association policy. The rates on the AANA disability insurance policy are age banded. This means that when you turn 40, your rates more than double. For example, the cost for a 39 year old female for $6000/month benefit is $2000/year. When she turns 40, that same AANA disability insurance policy changes to $4410/year! The cost for a male 39 year old AANA disability insurance is $1356/year and the cost jumps to $3166/year when he turns 40.
For a 40 year old female CRNA looking for an individual policy at $6000/month the premium is between $2976/year (discounted) to $4400/year. For a male, the cost is about $2500/year to $3500/year.
The problem with waiting until you are in your 40s to purchase an individual disability policy is that individual policies require medical underwriting which involves a phone interview asking about your medical history and a blood and urine test. If you have health issues in your 40s, it may cause you to either be denied for insurance, receive an exclusion or rating.
The most prudent choice is to lock in an individual policy earlier in your career when you are healthy to avoid the significant increases in premiums.
For more information about CRNA disability insurance or to request a quote, contact Set for Life Insurance today!