Medical Resident Disability Insurance
Recently I was working with a medical resident in California with her disability insurance. She informed me that after she completes her training in June, she will be doing a fellowship in Massachusetts.
Set for Life Insurance has discounts at both hospitals. Should she buy her individual disability insurance policy now or wait until after graduation?
There were several reasons it made sense for her to wait until after graduation to purchase her new disability insurance policy.
1) Cost. She is a 30 year old doing a surgical residency. She is looking to purchase a policy with a true own occupation definition of disability, residual, 90 days to age 67, COLA cost of living and a noncancelable, guaranteed renewable clause. The cost per $1000/month benefit in California is $34/month. The cost for the same policy in Massachusetts is $44/month. That is a 29% difference.
2) California policies require a 2 year mental nervous limitation on their policies. Massachusetts does not have this limitation.
Since her policy will be adjustable, once she has a MA policy, her rates and policy provisions will set as such. If she ever decides to move back to California, she will still be paying at the MA rates.
It is better for her to purchase a Massachusetts policy for several reasons and to avoid purchasing a California policy.
If you are a medical resident looking for disability insurance, talk to Set for Life Insurance prior to graduation and we can help evaluate your options for you and advise you on how to proceed.