Medical Resident Disability Insurance for Graduating Residents
It’s that time of year when medical residents are finishing their training and graduating.
With this in mind, when is the optimal time to purchase an individual disability insurance policy?
A lot depends on your current and soon to be future situation.
As a graduating medical resident, consider the following when it comes to choosing your disability insurance policy.
1) If you are currently working at a hospital that is eligible for discounts on your disability policy, it could make a significant difference to purchase your policy prior to graduation. This is especially true if you are a female physician and are obtaining unisex, discounted rates. Please note that not all unisex discounted rates are the same. Make sure it is the type of policy where the discounts are permanent and apply to future increases. Otherwise the discount will only be on the initial policy and the future increases will be more expensive.
2) Check your contract for your new job. Will it have a group disability policy? If so, how much benefit will it provide? It is important to plan ahead and figure out if you will be limited to a lower supplemental policy. If so, you could consider purchasing the first year physician limits of $6500/month benefit regardless of your income and group disability benefits.
3) If you have not yet found a job or will be working doing locum tenens, you could still qualify for up to $6500/month benefit regardless of your income.
4) Are you moving? If you are moving from a more expensive state to a less expensive state, it may make sense to wait to purchase your disability insurance. The opposite applies. If you are moving to a more expensive state, it may make sense to purchase your policy prior to graduation.
The most important step is to contact an expert such as Set for Life Insurance who can spreadsheet your options and provide objective advice to guide you in the right direction.