Oftentimes medical residents purchase their disability insurance while still in medical residency or fellowship. By doing so, they can take advantage of available discounts.
Upon finishing their training, how do they go about increasing their benefits?
Most individual policies have riders allowing for increases when there is a significant increase in income. This allows you to increase without any medical questions. The only questions asked are financial. The company will ask you what your new income will be and if you will have any group disability insurance through your new employer.
You have a few different options when it comes to increasing your policy.
- Medical residents and fellows may automatically increase their benefits up to $7500/month benefit regardless of income or group benefits in force. A lot of people increase their benefits up to this amount if they don’t yet have a contract, will be working locums and don’t have a consistent income or if their income will be relatively low or will have a large group policy that limits the amount of eligible benefit.
- If you have a contract on hand and know what your new income will be and if you will have a group disability policy in place, you may use this criteria to determine how much benefit you will be eligible for.
You may submit your increase application up to 90 days before your requested effective date. For example, if you are starting your attending position August 1st, you may submit your increase application as soon as April 1st and request the effective date to begin in August.
For more information about medcial resident disability insurance or how to increase your policy, contact Set for Life Insurance today!