First of all, Disability Insurance is designed to protect your number 1 asset as a physician…your ability to EARN an income. But, in order to even get to your graduation date, lots of time and a HUGE amount of money has been invested in your training. The average debt for graduating residents and fellows in 2016 was $188,000!!!! So, many younger physicians enter their practices under large debt loads yet haven’t begun to grow money to repay those obligations. Additionally, should a disabling event occur before the debts are paid, most loans AREN’T forgiven as they are upon death. This catastrophic scenario leaves the physician in a dire situation if insurance benefits aren’t available to offset the risk. Based on this possibility, here are several key reasons to buy policies NOW!
- The fixed cost of disability insurance is locked in at your purchase age and the younger you are, the lower the annual cost.
- GME programs or special offers from insurance companies can provide a 30 year old graduating resident with a discounted rate compared to other professionals at the same age.
- Industry regulations allow for existing individual disability insurance to precede employer provided group Long Term Disability Insurance and not be capped at traditional 60% income protection caps. The resident can lock in $5000 or up to $7500/month of personal protection and then not be subject to issue and participation limits when stacking a new hospital or employer provided group plan on top. However, if the resident waits to secure the policy until after graduation, there is likely no discount available and all issued benefits will be subject to the 60% or lower issue caps.
- We may be able to help you secure individual disability insurance without medical exams before your graduation. This is almost never available after you graduate. In some cases, we can design Guaranteed Issue programs that require no medical review whatsoever. This is critical for those with any pre-existing conditions as many are declined coverage or have significant policy exclusions upon medical review.
- Unisex rates- Unlike Life Insurance where the cost of coverage is less for females than males, it’s the opposite for disability insurance where costs can be 50-60% higher for females! In some cases, we can secure special offers to bring the same costs to both males AND females with discounts on top.
- InsureSTAT has worked with a United States cover holder for Lloyds of London to bring a resident or fellow or one who has recently graduated a customized disability insurance policy designed to pay student loans in the event of disability. Specifically, if the individual has purchased or is in the process of purchasing through our team now, a traditional individual disability insurance policy, we can help you up buy a separate policy with up to $200,000 of benefit built to pay of medical loan debt. Up to $50,000 will be paid over 4 6 month increments while disabled so as to pay off the entire loan amount and not take up precious other income protection benefits that are necessary to fund family or personal obligations. The kicker to this never-before-seen policy design is that it can be secured WITHOUT ANY MEDICAL QUESTIONS!!! This is unique and groundbreaking for all residents fellows with any existing debt. Simply put, this is a must!!!
Danny Mensh is the CEO of InsureSTAT, the leading online provider of Disability Insurance for Physicians, Nurses and Physician Assistants.