Set for Life has been helping our family with an array of financial needs for 8 years. Back when we were starving students and starting a family, they helped us understand and outline goals for income protection, savings, college planning, and life insurance. Even though we could not afford to do it all at once, they helped us make a plan. Today, as our children are growing older and I am part of a thriving medical practice, Set for Life continues to help us with our goals. They are not only experts in their field, but they feel like friends, too.

— Dr. Willow M., Pediatrician, Anchorage, AK

Disability Insurance for Medical and Dental Students.

Training for a career in medicine takes a big commitment. Long hours. And personal sacrifices. Right now, planning for your financial future may seem overwhelming. Perhaps you think you can put off getting disability insurance until later in your career.

 If you are a medical or dental student in your third or fourth year, it is not too early to start thinking about protecting your future income. In fact, there is not better time for a physician or dentist to consider purchasing a personal disability policy. Since policies are based on your situation at the time of application, you have the opportunity to put yourself in the best light and lock in a policy based on your current age, health, and many other benefits.

 Consider the facts.

Your most valuable asset is your ability to bring in an income. In your case, your future income is the payoff for your years of training, hard work and accumulated debt.

 Physicians’ and dentists’ jobs are very physically demanding. Consequently, they are at a much higher risk than other professionals to become disabled in some capacity.

 Your student loans do not go away if you become disabled.

 As a medical or dental student, you are in the best occupational class. This means you can lock in your contract at the best rates and best definitions even if you choose a riskier specialty such as surgery in the future.

 Insurance companies realize that you have great earning potential. Therefore they allow you to purchase over and above what another professional would normally qualify for.

If you are considering going on to do a fellowship or a riskier specialty, it may make sense to purchase your policy early since you may be in a better occupational class, giving you better rates. Once you have your policy at those rates, you will still be covered in your new specialty, but possibly at a reduced rate.

 You will never be younger, so rates will be less expensive.

 Qualifying for disability insurance can be difficult, so it is important to apply before you have any medical problems or conditions. Once you have the policy, it can’t be taken away from you as long as you pay your premiums (if your policy is non-cancellable, guaranteed renewable).

 By making a responsible decision early on to purchase a policy, you build the platform to allow your policy to follow you for your entire career.

 When you become a resident, your group disability policy may not protect you in the way you wish to be protected.

What to look for in a disability policy:

When purchasing a disability insurance policy during residency or fellowship, it is important to look for the following:              

Specialty Specific definition of disability. It is important that your policy cover you in your medical specialty without restrictions if you can work in another medical specialty or occupation. This type of definition comes in sever different names: Own occupation, transitional occupation, regular occupation. Each company has slightly different names. It is important to read this part carefully. With a specialty specific definition, it will cover you in whatever specialty you are practicing in just prior to your claim. For instance, if you purchase a policy while training in internal medicine and go on to gastroenterology and later become disabled, it would cover you if you couldn’t practice as a gastroenterologist.

Non cancelable, guaranteed renewable. With this provision, as long as you pay the premiums, the company can never cancel your policy or raise your premiums.

Future Increase Options. It is important that your policy has the ability to increase in the future as your income increases without having to go through future medical underwriting. If your health or situation changes, you are safe and able to increase your policy.

Residual Rider. This allows you to receive a partial benefit if you have a 15-20% (depending on the company) loss of earnings or more.

Cost of Living COLA Rider. This keeps your benefits up with inflation if you are on claim for more than one year.

Company Has High 3rd Party Ratings. It is important to check the company’s 3rd party ratings to ensure quality. http://www.setforlifeinsurance.com/disability-insurance/companies.

Can you afford disability insurance now?

 If you are concerned about paying for disability insurance during residency, there are several things we can do to reduce your premium as much as possible.

  Some companies allow a “graded” or increasing premium. This is initially less expensive and your premium will increase each year. If you wish to lock it in at a later time, you may do so on any policy anniversary.

 Look for discounts available. At Set for Life Insurance, we have discounts set up at numerous medical schools and hospitals around the country. The discounts can save you from 10-40%. Please contact us to find out if we already have a discount at your program. If not, we can assist you to put one in place.

 

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