Story at-a-glance
- Get big discounts as a resident—lock in lower rates now and keep them for life.
- Premiums go up as you age, so starting young saves you thousands over time.
- Skip the medical exam—many resident offers don’t require one.
- Your health today is protected—future issues won’t affect your existing policy.
- Disability insurance protects your income, career, and financial future.
As a medical resident, you’re navigating the demanding path toward becoming a practicing physician. Amid the busy days and long nights, there’s a critical financial decision you should make before your residency ends: securing discounted resident physician disability insurance. Here’s why acting now can save you significant money and provide essential financial protection throughout your career.
The Benefit of Residency Discounts
Insurance companies recognize the unique financial pressures faced by medical residents and offer special discounted rates on disability insurance. These discounts make it more affordable for you now, when your income might be lower compared to what you’ll earn as a practicing physician.
The beauty of securing a policy during residency is that these discounts are not temporary—they carry forward for the entire duration of your policy. This means that by acting now, you lock in these lower rates for as long as you hold the policy. Even modest discounts can result in substantial savings over the course of your career. For example, a $500 annual discount can accumulate to $15,000 in savings over 30 years.
Locking in Lower Rates Based on Your Age
Purchasing resident physician disability insurance now allows you to lock in premium rates based on your current age. Insurance premiums generally increase as you get older because older individuals are statistically more likely to file claims. By securing a policy while you are still young, you can lock in a lower rate that will not increase simply due to aging.
Delaying your purchase until after residency can result in higher premiums because of the age factor. Over time, this can add up to thousands of dollars in extra costs. Locking in a lower rate now ensures you’re paying the most affordable premium for the long term.
The $60,000 Mistake: Waiting Until Graduation
Many residents wait until they "have money" to buy insurance. Here is the actual cost of that delay for a healthy male physician:
| Scenario | Monthly Premium | Cost over 30 Years | Extra Cost of Waiting |
|---|---|---|---|
| Buy as Resident (Age 28) Includes 20% Training Discount | $280/mo | $100,800 | - |
| Buy as Attending (Age 34) No Discount + Older Age Rate | $450/mo | $162,000 | +$61,200 |
*Hypothetical example for illustration. Rates vary by specialty and state.
Avoiding the Medical Exam Requirement
Many insurance companies waive the requirement for a medical exam if you apply for disability insurance while still in residency. This not only simplifies the application process but also ensures that your current health status won’t negatively impact your insurability or your premium rates.
Securing your policy now means your premiums are based on your current health. If you develop a medical condition later, it won’t affect your existing policy. This is a significant advantage, as any future health issues could lead to higher premiums or even make it difficult to obtain disability insurance at all.
Financial Security for Your Career
Disability insurance is designed to replace a portion of your income if you are unable to work due to illness or injury. As a physician, your ability to earn is tied to your physical and mental capabilities. Protecting this ability is crucial.
Imagine the financial impact if you were suddenly unable to work. Your income would be drastically reduced, but your expenses, such as student loans, mortgage payments, and daily living costs, would continue. Disability insurance provides a financial safety net, ensuring you can maintain financial stability even if you face a serious health challenge.
⏳ The "90-Day Rule"
Most "In-Training" discounts expire 60 to 90 days after your residency or fellowship graduation date. Once that window closes, you are subject to full "Attending" rates.
Pro Tip: Even if you are starting your new job in September, apply for your policy in May or June to lock in the resident rate. You can often set the start date for later, but the application must be in before you leave training.
Conclusion
There is still time to take advantage of discounted disability insurance rates as a medical resident. By securing a policy now, you can save thousands of dollars over your career, lock in lower rates based on your current age, and avoid the need for a medical exam. The financial security and peace of mind that comes with disability insurance are invaluable.
Don’t wait until your residency ends. Act now to invest in your financial future and protect your ability to earn. Secure resident physician disability insurance today and enjoy the long-term benefits it provides.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
