Some resident physicians decide to first do a transitional year before declaring a medical specialty.
When it comes to disability insurance, purchasing in your transitional year may be very beneficial.
Companies price their policies based on occupational classes. For physicians, this typically means either a surgical or non-surgical rates. Surgical rates are approximately 20% more expensive than nonsurgical rates.
If you are in your transitional year when you purchase your individual policy, the premiums will be priced at the nonsurgical rates. If you later decide to do a surgical specialty such as anesthesiology, OB/Gyn or emergency medicine, you will be paying the non-surgical rates even though you will be covered in your surgical specialty.
To take the most advantage of these rates, make sure your policy is adjustable. This means that the nonsurgical rates will apply to future increases because the policy simply adjusts when you increase the monthly benefit. Some policies will issue a base policy and increases are new policies. If this is the case, the increases will be a the surgical rates and will be more expensive.
If you are starting or finishing your transitional year in medical residency, contact Set for Life insurance today for a free no obligation quote comparison!