Why Resident Physicians Need the Disability Insurance

The Importance of Disability Insurance for Resident Physicians

Starting a medical career takes a lot of time, effort, and money. To ensure your hard work pays off and to protect your long-term finances, it’s important to secure your income in case of potential disabilities. Disability insurance acts as a safety net, providing you with a portion of your income if you can’t work due to injury or illness.

As a resident physician, your most valuable asset lies in your future earning potential. The ability to command a substantial income for decades to come represents a cornerstone of your financial well-being. Getting disability insurance while you’re still in residency is really important – It helps protect your future income in case something happens and you can’t work.

The nature of your work as a resident physician exposes you to heightened risks of disability. Caring for ill and injured patients on a regular basis increases your likelihood of accidents, illnesses, or injuries that could prevent you from performing your duties. By obtaining disability insurance during your residency, you fortify your financial future against these inherent occupational hazards.

Why Residents Need Disability Insurance

While the importance of disability insurance is obvious, several compelling reasons emphasizes why resident physicians, in particular, should prioritize this coverage.

1. Income Protection

As a resident, you possess a steady income stream, enabling you to afford disability insurance premiums. While your current earnings may seem modest compared to an attending physician’s salary, it is crucial to recognize that disabilities can strike at any time. Getting disability insurance during your residency means you’re protected right from the start of your medical career. And, you can take advantage of big discounts for residents and fellows, sometimes up to 40% off your premiums for the entire policy.

2. Higher Risk of Disability

The demanding nature of your work exposes you to a heightened risk of disability. By obtaining coverage during your residency, you proactively fortify your financial well-being against the unexpected, ensuring a secure future where your income remains safeguarded against disabling events.

3. Lower Premiums

One of the key advantages of securing disability insurance during your residency is the opportunity to lock in lower premiums. Disability insurance rates are determined by factors such as age, health, and occupation. As a young resident physician, you are likely to qualify for lower premiums compared to when you become an attending. Locking in these great rates early can save you a lot of money throughout your career.

4. Longer Coverage Period

Purchasing disability insurance during your residency ensures coverage for an extended period, typically until you reach retirement age (65, 67, or a designated age). This extended coverage duration, coupled with lower premiums, translates into substantial long-term financial benefits.

5. Flexibility and Portability

Disability insurance policies obtained during residency offer flexibility and portability. You can tailor the coverage to suit your specific medical specialty and needs. Furthermore, own-occupation policies are portable, allowing you to maintain coverage even if you change jobs or institutions after completing your residency.

Top Disability Insurance Providers for Resident Physicians

1. Guardian

BBB Rating: A+

AM Best Rating: A++

Guardian is a reputable insurance company renowned for its comprehensive disability coverage for physicians. Their enhanced true own-occupation coverage ensures that you can continue practicing medicine while still qualifying for benefits if your disability limits your ability to practice at your previous capacity. Guardian offers a range of riders to customize your policy, including options for student loan coverage, lump-sum benefits, and partial disability protection. While their premiums may be higher than some competitors, Guardian’s comprehensive coverage and specialty-specific discounts make it a top-tier choice for resident physicians.

2. MassMutual

BBB Rating: A

AM Best Rating: A++

As one of the largest life insurance companies in the country, MassMutual offers disability insurance policies tailored for physicians and other high-income earners. While the base policy covers inability to perform any job, you can add an own-occupation rider for more comprehensive coverage. MassMutual’s disability insurance plan is highly customizable, with options for automatic benefit increases, extended coverage for mental disorders, and more. However, it’s important to note that MassMutual has a longer waiting period compared to some other providers.

3. Ameritas

BBB Rating: A+

AM Best Rating: A

Ameritas is another leading insurance carrier offering disability insurance for physicians. Their DInamic Cornerstone policy allows you to choose your plan’s limits and rates, with a true own-occupation option for disability definition. Ameritas provides a range of riders so you can customize your coverage, including a Cost of Living Adjustment (COLA) rider, a future increase option, and a residual disability rider. While Ameritas has a coverage limit of $20,000 per month, they offer solid financial strength and valuable policy features.

4. The Standard

BBB Rating: A+

AM Best Rating: A

The Standard is a top choice for those seeking affordable disability insurance with complimentary riders. Their Platinum Advantage policy comes with a unique free rider called the Family Care Benefit, which pays out if you need to take time off to care for a disabled family member. The policy also offers additional riders like a guaranteed renewable rider, a rehabilitation benefit, automatic benefit increases, and a survivor benefit. While some riders may require an add-on for own-occupation coverage, The Standard’s individual disability insurance coverage is portable, meaning that you can maintain coverage even if you change employers.

5. Principal

BBB Rating: A+

AM Best Rating: A+

Principal is a reputable insurer with a long history and positive customer reviews. You can easily customize their disability insurance coverage and compare options and rates online. Principal offers a range of riders, including residual disability and recovery, future benefit increase, and a cost of living adjustment rider. With high benefit amount limits and fair pricing that does not discriminate based on gender, Principal is a solid option for resident physicians seeking disability insurance.

Key Considerations When Choosing Disability Insurance

When selecting the best disability insurance for resident physicians, there are several key considerations to keep in mind. These factors will help you make an informed decision that aligns with your specific needs and financial goals. Below are the main factors to consider:

1. Coverage Options
Review the options offered by each insurance provider. Look for policies that offer true own-occupation coverage to ensure that you are protected if you can no longer perform the duties of your medical specialty. Consider the different riders and add-ons available, such as residual disability and cost of living adjustment, that can enhance your coverage and tailor it to your specific needs.

2. Premiums and Affordability
Consider the cost of the disability insurance premiums and how they fit within your budget. While it’s essential to have comprehensive coverage, it’s also important to find a policy that is affordable for your specific financial situation. Compare quotes from different providers and consider the long-term financial impact of the premiums.

3. Financial Strength and Reputation
Evaluate the financial strength and reputation of the insurance providers you are considering. Look for companies with high ratings from credit rating agencies like AM Best, as this indicates their ability to fulfill their financial obligations. Additionally, research customer reviews and ratings to gauge the overall customer experience and claims process of each provider.

4. Policy Terms and Conditions
Carefully review the terms and conditions of the disability insurance policies, including benefit limits, waiting periods, and benefit periods. Ensure that the policy aligns with your specific needs and provides adequate coverage for the duration you require. Pay attention to any exclusions or limitations that may affect your ability to make a claim in the future.

5. Flexibility and Portability
Consider the flexibility and portability of the disability insurance policies. Look for policies that allow you to customize your coverage and add riders to meet your changing needs. Additionally, consider whether the policy is portable, allowing you to maintain coverage even if you change jobs or institutions after residency.

6. Working With a Broker
You can shortcut most of the work outlined in the article by working with an unbiased broker like LeverageRx. Working with a broker ensures that you get clear answers on policies, see all of your options, and get the best rate.

Key Takeaways

Getting good disability insurance is really important for protecting your finances as a resident physician. Choosing the right provider and policy means you’ll have the support you need if you can’t work. Think about the coverage options, premiums, financial stability, and policy terms. Working with an unbiased broker like LeverageRx can make this process easier. Request your free quotes today to get started!