Disability Insurance in Residency

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joeDO2

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A few questions about this...

1. How much is reasonable to have?

2. My current med school policy is able to continue for $46/month for 2k/month in benefits or $72 for 3k/month.... is this a reasonable price?

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1. As much as you can afford

2. Seems pretty cheap. But the devil is in the details regarding exclusions/exceptions, cost of living increases etc. You can always talk with an insurance broker and get quotes and compare them to your current situation.
 
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any recommendations on companies that specialize in physician disability? the generic google search brings up too many to count
 
One thing to keep in mind is that you can't get covered for more than your current, actual salary. Does your new program not have an option? I'd max that out before doing anything else.

There have been a bunch of threads on DI both here and in the EM forum in the not too distant past (in fact, there are 5 "similar threads" right below this as I type. Might be worth looking into those for company recommendations.
 
One thing to keep in mind is that you can't get covered for more than your current, actual salary. Does your new program not have an option? I'd max that out before doing anything else.

There have been a bunch of threads on DI both here and in the EM forum in the not too distant past (in fact, there are 5 "similar threads" right below this as I type. Might be worth looking into those for company recommendations.
That's the big thing - your current salary.

My advice: max out what your residency offers you.

One the first day of your first attending job, apply for disability insurance using your new salary.
 
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I actually just applied and was accepted for disability insurance outside of my program since I wanted a policy that I could keep over my whole career and that had an own-occupation rider. Since I'm a resident (or will be soon, but the case would be the same for a medical student, too), I can actually get covered up to $5000/month even though that's more than I will make. Apparently when I take an attending job, the insurance company will then request proof of income and I can change my policy then if I so choose to more than the $5000/month. The agent I worked with was Jamie at setforlifeinsurance.com. She's great!
 
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A few questions about this...

1. How much is reasonable to have?

2. My current med school policy is able to continue for $46/month for 2k/month in benefits or $72 for 3k/month.... is this a reasonable price?

Is it own occupation? It might be wrote so it doesn't kick in if you can work as a greeter for walmart.
 
Pgy1 soon to be pgy2. I got a disability policy with MetLife, own accusation and all that none sense this year. Costs me 102$/month and covers me 5K after tax money per month till age 65. I am on the graded plan, meaning that next year my monthly payment will increase and continue to do so until I "lock in the price". If I were to have locked it in this year would have cost me around 170. That extra cash means a lot more to me now than it will in 2 years so I don't mind paying a little more per month down the road. I think if ur going into a specialty where u need to use ur hands especially lock it in early. Also something to note, they do full medical background checks, pharmacy scans. Anything that pops up in residency (we all R getting older, residency is stressful) can hurt ur chances if you apply later. But once u have the policy they can't take it away.
 
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I actually just applied and was accepted for disability insurance outside of my program since I wanted a policy that I could keep over my whole career and that had an own-occupation rider. Since I'm a resident (or will be soon, but the case would be the same for a medical student, too), I can actually get covered up to $5000/month even though that's more than I will make. Apparently when I take an attending job, the insurance company will then request proof of income and I can change my policy then if I so choose to more than the $5000/month. The agent I worked with was Jamie at setforlifeinsurance.com. She's great!

If/when you decide to increase your coverage, are you going to have to go through underwriting again? If not, then that's a good deal. If so, then it's nearly the same as getting a new policy.
 
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If/when you decide to increase your coverage, are you going to have to go through underwriting again? If not, then that's a good deal. If so, then it's nearly the same as getting a new policy.

Yep I don't ever have to do that stuff again with my policy. Only my age will plan a role in my change in premium (other than amount of coverage). The other nice thing is that since I applied for my policy while a was a medical student, my occupation class is that of a non-surgical physician and that won't change even though I'm going into Ob/Gyn and I'll still have own-occupation coverage as an Ob/Gyn.
 
Buying a quality contract is really pretty simple....buy a the right definition for your specialty, buy the amount you need/qualify for, and then have Future Purchase Options (FPO) on the policy. Now a little issue most don't know is that a future purchase option where it does give you the right to buy more coverage what some carriers do is offer that right based on "the product that is available at the time that FPO is exercised". What that means is the cost for that extra coverage is not locked in, the product definition and terms are not locked in so be aware of that when taking that feature. Don't get me wrong I am an advocate for my clients getting FPOs but having the knowledge of how they work and function at time of use can make a difference on what you decide to do!
 
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I actually just applied and was accepted for disability insurance outside of my program since I wanted a policy that I could keep over my whole career and that had an own-occupation rider. Since I'm a resident (or will be soon, but the case would be the same for a medical student, too), I can actually get covered up to $5000/month even though that's more than I will make. Apparently when I take an attending job, the insurance company will then request proof of income and I can change my policy then if I so choose to more than the $5000/month. The agent I worked with was Jamie at setforlifeinsurance.com. She's great!
you can only cover up to 65% of your current income. I have seen many cases where residents or doctors have gotten approved for more then they are entitled based in income. Many insurance agents could become your best friends or do amazing things when it comes to more premium more commission in their pocket. However, you are paying for a policy that will only cover you 65% of earnings regardless of what you got approved for and what you were paying before. I am sure you insurance agent will not even pick up your phone call when disability happens. Always make sure that if you only can afford a honda then don't make payments for S-Class Mercedes . A lot of contractual agreements are subject to intent and verification when a disability claim is filed. Also, you might be deemed to a contributory defamation when it comes into up-scaling income for the purpose of higher insurance. Any increase in benefits is subject to income verification. This goes for every company dosn't matter whether they are mutual or stock owned companies. These are adhesion legal rules.

I hope this helps!
 
Remember all insurance policies are priced so that on average you loose money on them. That's how the industry works. So don't think its some game where you're out to buy as much coverage as possible and keep your fingers crossed you become too injured to work. You should buy the amount of coverage needed to continue your life in an acceptable manner should you unfortunately become injured. If your spouse has a pretty good job and your family could get by on a single income then you may not need coverage at all. And don't worry about you have to buy it now or never. People make money on selling insurance and you'll be able to find a broker at any point in your life to sell you a policy.
 
Remember all insurance policies are priced so that on average you loose money on them. That's how the industry works. So don't think its some game where you're out to buy as much coverage as possible and keep your fingers crossed you become too injured to work. You should buy the amount of coverage needed to continue your life in an acceptable manner should you unfortunately become injured. If your spouse has a pretty good job and your family could get by on a single income then you may not need coverage at all. And don't worry about you have to buy it now or never. People make money on selling insurance and you'll be able to find a broker at any point in your life to sell you a policy.

I agree mostly with the above....
except I think with insurance you should buy as much coverage as you can afford responsibly, so it can help to get a financial advisor, who isn't the same person selling you said insurance

and spouse and family should not make you think you don't need coverage
spouses and families come and go frankly, and even if they don't, you'd be surprised how little others will do to help you should you become disabled
yeah... in sickness and in health

also, unless you have worked paying into Social Security for about 10 years, or if like most people in medicine you've spent the vast majority of your adult life in school, if you don't finish residency or make it far as attending before disability, then you are most likely looking at ~750 dollars a month from SSI.... THAT'S IT. Sure, you might get $160 foodstamps, some utility assistance, and $400 HUD housing allowance on top of that. Not a lot to live on. Total crap actually. And if you're married to someone who works you won't be getting any of that help either for the most part. SSDI is a bit different since it's based on what you pay in, they don't have some of the same income caps so you can collect with a working spouse.

Anyone that ever made it to residency and then became too disabled to work, is looking at the very worst sort of poverty. Like suicide poverty.

And as far as losing money on insurance.... it's like car insurance. The point is that you are getting what you pay for: insurance. It should not be looked at like some sort of investment where you are going to see the money again. That's like paying a security guard to stand watch and then want your money back when no baddies show up during his shift. You're paying for a service. Look at insurance that way and the financial part of it makes more sense.

TLDR
get a financial advisor maybe
don't ever think you can rely on spouse or family financially or be prepared to be disappointed, or feel like a burden, neither is awesome
if you haven't spent years paying into SS, you need good disability insurance!
if you have to get SSI you'll almost wish you were dead rather than live on that
insurance, even life or disability, shouldn't be looked at necessarily as a way to "invest" money
 
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A few questions about this...

1. How much is reasonable to have?

2. My current med school policy is able to continue for $46/month for 2k/month in benefits or $72 for 3k/month.... is this a reasonable price?


Please read the guide to purchasing disability insurance written on whitecoatinvestor.com (titled "Disability Insurance Series")
http://whitecoatinvestor.com/personal-finance/insurance-more-than-just-malpractice-protection/

1. Read the guide
2. Determine your needs based on the guide
3. Get multiple quotes
--from my experience this guy was very responsive and sent me quotes for every insurance company.
http://www.physicianfinancialservices.com/

4. Avoid working with your institutions insurance "salesmen", they are just selling for a company they work for. In our university its Principal.
5. Disability policies we have as resident from the university go away as soon as you graduate.
6. Do NOT get a financial advisor
--educate yourself its not that difficult.
--a useful place to start is here: http://whitecoatinvestor.com/financial-survival-guide-for-new-interns/
--also boggle heads forums: https://www.bogleheads.org/forum/index.php
7. Remember you don't need to keep your insurance policies forever. Once you build up a nice nest-egg you can re-evaluate need to maintain insurance coverage.
8. Good time to get coverage is as a resident. Basically time when you are still healthy, younger age, still a resident, etc. As an attending you can the purchase additional coverage as needed (but make sure you have a future purchase rider)
 
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