Check out the Medical Resident Blog.

Most medical residents and interns have insurance coverage on their homes, autos, etc., but many have not realized the value of their future earnings may far exceed the value of their tangible assets. If their future earnings cease because of an accident or illness, the loss of income could present serious financial problems.

Disability income insurance policies for medical residents and interns can help replace a portion of the loss of income due to disability during one’s working years.

At Doctor Disability Insurance, physicians are our specialty! Our agents have been working with medical residents and interns (and medical students) for over 13 years. We have a unique understanding of doctors’ needs, schedules and preferences. We’ll work with you to design a disability plan specifically tailored to your unique situation.

Disability Insurance Benefits for Medical Residents and Interns

At Doctor Disability, we offer the following benefits for medical residents:

	Own occupation coverage of up to $3,500
	Group discount plans when three or more doctors from your residency program apply
	Flexible premium plans to fit your budget

As a medical resident or intern, right now is undeniably the best time to consider disability insurance. Here’s a short quiz to help.

What is your most valuable asset?

	Your home (or future home)
	Your 1987 Toyota Corolla
	Your ability to earn an income

If you choose “c,” you’re correct! Consider the following:

The average Anesthesiologist makes $280,000 per year and will work for 25.3 years. If their income increases an average of 5% per year, he or she will earn in excess of $13,700,000 throughout their working lifetime! Protecting your ability to earn an income is like insuring the goose who lays the golden eggs.

Some issues to consider:

	Your student loans don’t go away if you are injured and can’t work. How would you repay
	them if you were disabled?
	Rates are based on your age and health status
	Doctors have very physically demanding occupations. Consequently, they have a higher risk of disability than other professionals
	Almost 50% of home foreclosures are due to disability!

Disability Insurance Rates Are Based on Three Factors

Age at the time of purchase

The price of a disability contract is based on the age of the applicant at the time of purchase. The younger a person is, the lower the cost of the policy. If the contract is non-cancelable and guaranteed renewable (the only type of policy we sell at Doctor Disability), then the price will never go up as long as you keep your policy. It could actually cost you less over your lifetime to buy a policy now vs. waiting until a future date. Longer coverage for less money!

Occupation

Insurance companies have determined that people in some occupations have a greater risk of becoming disabled than people in other occupations. In the medical industry, surgeons, anesthesiologists and other specialists who perform invasive procedures statistically have more disabilities than other non-invasive specialists. Because of this, insurance companies will charge more for disability insurance to cover an orthopedic surgeon than a pediatrician.

If you buy a policy before you declare a specialty, you lock in your rates at a better occupational classification than you may be able to qualify for in the future. These lower rates won’t change even if you decide to opt for an invasive specialty later on.

Health Status

The third factor in determining the rate for disability insurance is your health. Generally, the healthier you are at the time of application, the lower your rate. Most people’s health tends to be better at younger ages; therefore, rates tend to be lower. Once a policy is in force, future changes in health will have no effect on the premium.

A major risk of waiting to buy a policy is a change in health status. For example, if you were to injure your back in a car accident prior to buying disability insurance, your back may be excluded in any future policy you were to purchase. If you were to re-injure your back and not be able to work, you would more than likely not receive any benefits.

A contaminated needle stick could disqualify you from ever purchasing a policy!

Future Increase Benefit

Many policies will contain an optional feature that will allow you to increase the amount of your benefit when your income increases, even if your health has changed.

Let’s say you bought a policy in your last year of medical school. In your second year of residency you get into a car accident that leaves you with an injured neck. You’re now a first year practicing physician and your income is $130,000 per year.

Because you bought the policy prior to the neck injury and it contains the future increase benefit, you could increase your disability policy to cover your now higher income with no restrictions on your injured neck.

Buy your disability insurance while you’re young and healthy to get the best policy.

Group Plans

Many residency programs offer group disability insurance. Here are some things to consider:

	Group plans may be changed or canceled at any time. This could leave you without
	coverage when you need it.
	Most group plans can’t be taken with you when you finish residency. To obtain a personal
	policy, you must undergo a medical exam. Your age and health will determine your rate.
	Most residency group plans will offer a benefit of up to $2,500. Due to the nature of group
	plans, this benefit may be taxable leaving you with a lower net benefit.
	Many group disability plans have a very restrictive definition of disability. They require you to be COMPLETELY disabled before they will pay a benefit. In other words, if you have the ability to do any type of work, benefits may not be payable.

LEGAL