Spring has finally sprung! For medical residents and fellows finishing their medical residencies, Spring is a time of transition and change.
When it comes to disability insurance, many wonder when is the most opportune time to purchase their policy. Here is a guide to help answer your questions:
1) If you know the details of your new position, now can be a great time to evaluate your disability insurance needs. You can determine if it is more favorable to purchase up to $6500/month now as a graduating resident or to start your policy after June 30th based on your new income and group benefits. Either way, it is important to evaluate this before your graduation.
2) If you are moving to another state, you ought to evaluate your situation to determine if your rates are more favorable in your current state or your new residence. Rates can vary from state to state. States such as Florida and California tend to have more restrictive policies at more expensive rates.
3) Determine if your residency program has discounts. This can save you up to 55% if you purchase your policy at the discounted rate before graduation. Be sure these discounts are permanent and apply to future increases. Some discounts only apply to the original purchase whereas other discounts apply to all future increases even if your change employers. Set for Life has specially discounted rates for medical residents around the country.
4) If you are uncertain of your options, you can opt to purchase a minimum size policy of $1000/month benefit and increase it once your situation has settled down. Be sure your policy will allow you to increase it up to the maximum benefit of $15,000/month without further medical underwriting. Some policies that offer $1000/month benefit will limit their increases to $2-$3000/month whereas others will allow increases up to $15,000/month without additional medical underwriting.
For more information about graduating medical residency or fellowship disability insurance or to determine of you are eligible for specially discounted disability insurance rates, contact Set for Life Insurance today!