It’s Match Week for medical students and residents. Finally! You know where you will be doing your residency or fellowship training.
When it comes to purchasing your individual disability insurance policy, match week can bring some answers.
Medical students in their last 6 months of medical school can apply for an individual disability policy up to $2500/month benefit. Medical residents may purchase up to $5000/month benefit.
Since you still have some time left in your training, some companies will allow you to purchase a minimum size policy of $1000/month and still allow you to increase it in the future up to $15,000/month benefit without any further medical underwriting.
Here are some reasons to consider purchasing your policy prior to graduation:
If you are in school that has a discount available, you may be able to lock in the discounted rates. Make sure your discounts apply to future increases. Some discounts only apply to the base policy whereas some discounts apply to future adjustments. It is important to make that distinction.
If you are moving to a more expensive or restrictive state such as California, it would make sense to purchase your policy prior to your move. If you are moving from a more restrictive state, you may want to delay purchasing your policy until you arrive in your new state.
If you are changing medical specialties, you may need to evaluate your options. For example, if you are currently doing a general medicine or pediatric residency and are moving to a more invasive fellowship such as cardiology or emergency medicine, you ought to purchase your policy while you are in the more favorable occupational class. This can save you approximately 20% your premiums.
Medical students and residents should look for the following provisions in their disability insurance policies:
1) Own occupation definition of disability. Companies may have different names for the definition but it is important that your policy covers you if you can’t work as a dentist even if you can work in another occupation or dental specialty.
2) Non cancelable, guaranteed renewable. This means that once you have your policy, the company can never cancel your coverage or increase your premiums.
3) The ability to increase your policy in the future without further medical underwriting. This protects your insurability. Some policies will allow you to increase your policy once you have established your new income with a copy of your new contract.
For more information about disability insurance for medical students, medical residents or fellows or to request a personalized quote comparison, contact Set for Life Insurance today!