Anyone have the AMA disability or term life insurance?

[baxt1412]

I know it isn't own occupational disability insurance, but I can't seem to find anything else that starts M1. Everything I can find and that the independent insurance agents I have been in contact with can find either starts in residency or as early as M3. I want something in place because my Mom would likely become my caretaker (lives in the same city as my school) if I were to become disabled and unable to help myself.

https://www.amainsure.com/insurance-products/disability/student-disability-income-insurance.html

So I am planning on using this until I can qualify for a better plan that would start in M3 and then a better plan upon residency, post-residency, etc.



Also considering their term life as it would cover the Parent PLUS loans that my mom has from my undergrad. She has a small policy through her work that would cover funeral expenses and then some, but it'd be nice to be able to help her pay those loans off if, God forbid, something would happen. I would go with the $50k policy since she has >25k in PLUS loans for me.
https://www.amainsure.com/insurance-products/life/student-term-life-insurance.html


Any thoughts or suggestions?


Long term, I'll get a disability policy like I stated previously. As far as long term Term Life products, I don't plan on getting more unless someone becomes dependent on my income. Obviously I wouldn't qualify for the student Term Life after school is done, but if I remember correctly I can transfer this same policy to a resident/physician policy without a medical exam so I'd likely do that. But no point in having a million when nobody is dependent on my income, in my opinion... Sure I could leave my parents/sister money, but I don't plan on doing that until my own personal finances are secured (ie no debt).

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[baxt1412]

bump

 

[MD Financial Services Scott]

You can pick up a disability contract as an M1, whoever in the insurance business you had spoken to must just not do to much of it. Let me know if we can help.

 

[baxt1412]

You can pick up a disability contract as an M1, whoever in the insurance business you had spoken to must just not do to much of it. Let me know if we can help.

Well most traditional policies are based off of income. So that is why I figured most people were saying they didn't have anything for me. I literally talked to maybe 6 different independent agents.

 

[MD Financial Services Scott]

It is true that contracts are based off of income but there are provisions that allow for medical students to buy coverage with no income, just the same as they allow residents/fellows buy more benefit (and tax free payments) than they would make in a gross income fashion while working. The limits are typically $2,500 for medical students, residents are around $5,000, new physicians in practice without an employment contract $6,500-$7,500 and then in practice with an employment contract, they get what they qualify for based on income.

 

[IlDestriero]

Two things to keep in mind.
You can always get sick or have an accident, which could dramatically increase the price or make you uninsurable.
The price of both goes up as you age, so there will be savings in locking in a payment early.
I have good own occupation insurance that can travel with me in addition to my policy that I get through work at no cost, that is good, but not quite as good.
For life insurance I have 2 term policies one 20 and one 30 year (1.5 each). I also have one through work at no cost, but it's not even a years income. I used to have a third for 500k but dumped that as I am partially "self insured" now.

 

[baxt1412]

It is true that contracts are based off of income but there are provisions that allow for medical students to buy coverage with no income, just the same as they allow residents/fellows buy more benefit (and tax free payments) than they would make in a gross income fashion while working. The limits are typically $2,500 for medical students, residents are around $5,000, new physicians in practice without an employment contract $6,500-$7,500 and then in practice with an employment contract, they get what they qualify for based on income.

Strange because I talked to almost 10 different agents and none of them had anything to offer me except for the AMA

 

[MD Financial Services Scott]

Strange because I talked to almost 10 different agents and none of them had anything to offer me except for the AMA

Feel free to drop me an email or call me I'll be happy to help you.

 

[bc65]

There's nothing wrong with the AMA policy if they will cover you as a student, but if you can lock in a private policy, I would do that. I had 4 disability policies with 3 companies, and the AMA policy was one of them, because they were the only company that covered the higher incomes. Even though it's a group policy, I assume that the AMA would make sure that coverage continued and claims would be paid fairly.

I agree with IlDestriero above. The sooner you lock in all your insurance ( Term life and Disability) the better. If you can afford it, and can qualify,do it asap before something happens that will make you uninsurable. Don't forget Health and Umbrella insurance as well, and get the highest auto liability they sell ( that's a prerequisite for umbrella insurance anyway).

 

[MD Financial Services Scott]

I would say you need to look at that AMA disability policy language since there are some real issues...as long as you are ok with those issues then no problem. Those issues as I see it are the waiting period language which states you must be "Totally and Continuously" disabled to be eligible for benefits vs. you have to lose 15-20% of your income, 100% is a whole lot more disabled than partially. The rates have a 5 year age banding so as you hit 40, 45, 50, 55, and 60 all have a rate hike, in addition they are currently using a 1 year premium discount that could go away at anytime thus having a rate hike sooner than the above ages. They do not have a true own occupation policy definition, yes I know they say they do but read the policy and you will see a clause in there that states 'and not engaged', that means if you work in anything and earn more than 20% of your pre-disability earnings they will reduce your disability payments. Another issue is they can change ANY term in the policy whenever they choose, this is a deal killer, I don't want anyone having the ability to modify the terms of a policy without my consent. Finally here is a copy and paste that anyone with an employer plan and an association plan should know about.....

In the case of Fleisher v. The Standard Insurance Company filed in New Jersey Federal Court, the court recently rendered a decision which can have a negative impact for numerous physicians and other business professional that have Group Association Policies and also have an ERISA governed group policy from their employer. Numerous medical, dental, legal, accounting, nursing and other professional associations across the country offer a group disability insurance policy to all of their members. These policies are almost always exempt from ERISA, which is a great, but these association disability policies according to a recent New Jersey Federal Court opinion are not considered individual disability policies and can be considered a deductible source of income against other disability policies.

Just be aware of language, titles, and government views, it can change your world pretty quickly!