Disability insurance now or end of fellowship?

[Syndicate]

I will be graduating from internal medicine residency next month and starting heme/onc fellowship. I got emailed by our hospital’s disability insurance salesman who said that it’s best to get DI now to secure a lower rate. I was wondering if I should get the DI now vs when I’m about to graduate from fellowship. Our hospital gives us DI as residents/fellows and it’s not like the DI I buy now will cover my peak earnings as a heme onc attending. However, I always hear people say to get DI as early as possible. Can anyone explain why buying DI now is better?
For reference, I’m a 28 y/o male with hyperlipidemia and family history of HTN and T2DM so I assume my premiums will be higher than the average person.

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[chessknt]

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Read this series and decide

 

[IMGASMD]

When you’re younger, it should be cheaper. Most don’t require any physicals during residency. It’s an insurance, you buy it and hope never to have use it.

 

[chessknt]

When you’re younger, it should be cheaper. Most don’t require any physicals during residency. It’s an insurance, you buy it and hope never to have use it.

Personal DI always requires a physical. The work policy is trash and the salesman policy probably is too. The wci series covers how to buy it

 

[rokshana]

Personal DI always requires a physical. The work policy is trash and the salesman policy probably is too. The wci series covers how to buy it

No not true...I was able to port both the DI from residency and fellowship... the residency one I can’t change, but it’s $90/month for $2000 ... my fellowship one I was able to increase to $8000 , though because of my age is higher than the residency one ...but neither required underwriting

but it answer the question, but your DI yesterday

 

[chessknt]

No not true...I was able to port both the DI from residency and fellowship... the residency one I can’t change, but it’s $90/month for $2000 ... my fellowship one I was able to increase to $8000 , though because of my age is higher than the residency one ...but neither required underwriting

but it answer the question, but your DI yesterday

This was own occupation personal disability insurance that had no underwriting requirement? Who was the company?

I have a MetLife personal own occupation policy with residual rider (they no longer issue new ones) 14.5k monthly benefit for 2500/yr that I bought during residency and have increased as an attending. This was a vastly better deal than what the guy tried to sell me when I was a fellow and I used an independent agent.

 

[rokshana]

This was own occupation personal disability insurance that had no underwriting requirement? Who was the company?

I have a MetLife personal own occupation policy with residual rider (they no longer issue new ones) 14.5k monthly benefit for 2500/yr that I bought during residency and have increased as an attending. This was a vastly better deal than what the guy tried to sell me when I was a fellow and I used an independent agent.

Yes, gender neutral as well ... which is cheaper for women
My residency one is northwestern and fellowship one is guardian.
Though I don’t think anyone offers gender neutral anymore.

 

[chessknt]

Yes, gender neutral as well ... which is cheaper for women
My residency one is northwestern and fellowship one is guardian.
Though I don’t think anyone offers gender neutral anymore.

Looking at your rate (4.5%) compared to mine (1.5%) maybe that underwriting is why I got a better rate? No underwriting with some exclusions for the first several years but you get stuck with an inferior rate. That seems similar to what the fellowship guy was offering too but it honestly took an hour to get the exam done in my home and was no big deal.

 

[rokshana]

Looking at your rate (4.5%) compared to mine (1.5%) maybe that underwriting is why I got a better rate? No underwriting with some exclusions for the first several years but you get stuck with an inferior rate. That seems similar to what the fellowship guy was offering too but it honestly took an hour to get the exam done in my home and was no big deal.

No exclusions... have 10k In coverage...didn’t really feel that I needed more than that, so was fine with the 2 DI policies, even though I can’t change the first one.

 

[IMGASMD]

I was in my mid 30s when I got mine. Own occupation, at least 10 yr, maybe more (don’t remember) for anxiety. Chronic viral illness.
~350/month. 12K. MetLife too.
Not as good as your rate, but I am pretty happy with it. Also like you said, MetLife got out of DI business. Not lucrative enough (?).

No underwriting. One company also offered a gender neutral one when I was looking, but MetLife was a few dollars better

 

[cards67]

You buy early to protect your insurability and young health. Anything can happen. I had a couple co-residents get in accidents, one of which was pretty serious that I'm sure will impact them and their ability to work for many years to come. A personal DI you take with you after graduating.

 

[MD Financial Services Scott]

Looking at your rate (4.5%) compared to mine (1.5%) maybe that underwriting is why I got a better rate? No underwriting with some exclusions for the first several years but you get stuck with an inferior rate. That seems similar to what the fellowship guy was offering too but it honestly took an hour to get the exam done in my home and was no big deal.

Things have changed over the last few years, virtually all carriers will allow up to $7500 of monthly benefit, a couple up to $10k and 1 is unlimited without lab work. Don't get me wrong they still underwrite the case but the carriers feel that between MIB review, ScriptCheck, and a few other 'big brother' services out there that know who they are underwriting. There are a few GSI unisex rates still left out there as a legacy program at a few institutions but they are getting to be fewer and farther between.

 

[MD Financial Services Scott]

Personal DI always requires a physical. The work policy is trash and the salesman policy probably is too. The wci series covers how to buy it

They actually don't any longer require a physical, Guardian, Mass, Ameritas, Ohio, Principal and Standard all have a lab free process.

 

[MD Financial Services Scott]

Yes, gender neutral as well ... which is cheaper for women
My residency one is northwestern and fellowship one is guardian.
Though I don’t think anyone offers gender neutral anymore.

The Northwestern will not be an Own Specialty contract, they will have a 'Medical Own Occupation' titled definition which really is an own occupation not engaged definition. What that means is if you can't do your specialty then benefits will be payable in full if you don't go do any other work. If you do go have a post disability income then that income will reduce your benefits receivable from NWM. There is also a dividend component to the NWM that if that dividend waivers and or goes down your premium will go up because part of the premium is dependent on that dividend.

Guardian has a true own specialty that will then Not offset for post disability income from a different occupation/job. I would recommend the Guardian policy.

 

[MD Financial Services Scott]

I will be graduating from internal medicine residency next month and starting heme/onc fellowship. I got emailed by our hospital’s disability insurance salesman who said that it’s best to get DI now to secure a lower rate. I was wondering if I should get the DI now vs when I’m about to graduate from fellowship. Our hospital gives us DI as residents/fellows and it’s not like the DI I buy now will cover my peak earnings as a heme onc attending. However, I always hear people say to get DI as early as possible. Can anyone explain why buying DI now is better?
For reference, I’m a 28 y/o male with hyperlipidemia and family history of HTN and T2DM so I assume my premiums will be higher than the average person.

The earlier you buy the younger you are so that helps because every year older you are adds 4-5% in your 20's to 30's. In addition, while you are in training and 90-180 days post training there is typically an extra 5-15% 'in training' discount. Finally, the other thing to think about is where you are currently living vs. where you are moving to. An example would be living in IN moving to CA, I would get it bought in IN at 25% less cost. If living in CA and moving to IN, I would wait until I am in IN to buy it.