Physicians should ALWAYS compare costs of disability insurance policies before making a purchase.
Whenever you make a purchase whether it is insurance or otherwise, cost ALWAYS matters. If you are shopping for disability insurance online or in person and someone tells you that you shouldn’t look at the cost when comparing plans, chances are you are not being given the best advice.
Bottom line: Price ALWAYS matters.
Disability insurance for physicians can be expensive, especially if you are a woman or in a surgical specialty.
For men in non-surgical specialites, plan to spend about 1-3% of your adjusted gross income on premiums. The younger you are, the lower the percentage.
If you are a woman, plan to spend closer to 2-4 % of your income.
For surgical specialists, anesthesiologists and emergency physicians, your premiums will cost more than the non-surgical specialists.
How can you reduce the cost?
- Look for discounts, like those offered through Set for Life Insurance. This can reduce costs by about 10-15% for men (depending on the discount) and 10-55% for women (10% if it is an association discount and 55% if it is a unisex rate).
- Apply when you are younger. This will lock in your age and most likely you will be healthier. As such, the policy may be issued without any ratings based on pre-existing conditions.
- Shop around. Companies tend to increase or decrease premiums depending on what is happening in the marketplace. Make sure you work with an independent broker such as Set for Life Insurance that can compare quotes for you.
- If you are a medical resident, look for a policy that has a minimum amount of benefit of $1000/month but will still allow you to increase benefits to $15,000/month without any future medical underwriting.
If someone tells you that there are no discounts available, chances are they are available, but not through that agent or broker. If someone tells you that you should spend twice as much on a product than another one, chances are they are not being objective and offering you the best advice. There are typically no policies that are worth paying double for.
For more information about disability insurance for physicians, contact Set for Life Insurance today!