Purchasing disability insurance prior to graduation offers several important benefits for medical residents and fellows:
Disability insurance provides crucial income protection if a medical resident or fellow becomes unable to work due to an illness or injury. Be sure to find a policy with a true own occupation definition of disability. This will ensure that your policy will pay you benefits if you can’t work in your specialty even if you can work in another specialty or occupation.
By purchasing disability insurance during residency, you can take advantage of lower insurance premiums. Insurance rates are typically based on age, and younger individuals generally pay lower premiums. Locking in a policy early allows you to secure lower rates for the duration of your coverage.
Health and Risk Profile: Generally, residents and fellows are in good health and have lower risk profiles. This can work in your favor when applying for disability insurance as you are more likely to qualify for coverage and potentially receive more favorable terms. If you develop health issues later on, it may become more difficult or expensive to obtain disability insurance. Once you acquire your disability policy, you will not need to answer any further medical questions and you can increase the policy using increase options.
Discounts: Many insurance providers offer discounts specifically for medical residents. These discounts can significantly reduce the cost of premiums. In some cases, the discount may also apply to future purchases or increases in coverage, providing long-term savings. Medical resident discounts tend to be about 15 to 20% and can be steeper than typical discounts. Make sure your discounts will apply to futher purchases.
Guaranteed Standard Issue (GSI) Policies: Some residency programs offer guaranteed standard issue policies to medical residents and fellows. With a GSI policy, you can purchase coverage without answering any medical questions, making it an attractive option if you have a pre-existing health condition. GSI policies often come with discounted rates and future increase options, providing flexibility as your income and needs change.
It’s important to note that some insurance providers have application deadlines for medical residents and fellows to qualify for certain discounts and GSI policies.The deadline for applications is June 30th.
For more information or to request a quote, contact Set for Life Insurance today!
