got disability insurance?

[finished]

Advertisement - Members don't see this ad

Graduation season is fast approaching and residencies, fellowships, and attending-hoods will soon be starting. As a person who became ill in medical school, I'd like to warn others of the need to have disability insurance (I didn't), even if you feel completely healthy now.
The obvious reason for having the insurance is that you invested a lot of time and tuition money in becoming a doctor and need to protect this investment and your high earning potential.

The less obvious reason (and the reason I'm posting this) is that while you were in school (undergrad and medical), you were most likely not earning social security credits, and in the meantime were getting older, raising the amount of credits you need in order to qualify for social security benefits, should the need arise (i.e. -should you become so ill that you cannot work at all- in any field, not just medicine). I'm fortunate that I recovered from my illness and can work, but this was an eye-opening experience for me (at one point, I came close to needing to go on disability- only to discover that I did not have the credits to do so because I hadn't earned any while in school).

 

[NotAProgDirector]

FYI, you usually can only get disability insurance to cover your current salary, not your potential future salary. Hence, disability insurance as a resident will only get you a resident's salary -- better than nothing, but not usually what people are looking for.

 

[finished]

I hope this won't deter anyone from getting the insurance. You see, if you become disabled and unable to work, there are two basic options:

SSDI: social security disability insurance
This is the one you pay into (or earn credits toward) while working. It generally pays more than SSI and they don't limit your assets before providing benefits. You are elligible for Medicare, the same insurance for those 65 and older.

vs

SSI: supplemental security income
This assistance is only granted once you have spent away your assets, down to about $2000 (you are also allowed to have a car). You are only entitled to Medicaid and it pays less than SSDI (about $400/mo), essentially leaving you in poverty.

Following is the link to the number of credits needed per age group to qualify for SSDI. If you don't have enough credits, I'd seriously consider getting disability insurance, even though it may not pay out a lot:

http://www.socialsecurity.gov/retire2/credits3.htm

 

[Nick Name]

I hope this won't deter anyone from getting the insurance. You see, if you become disabled and unable to work, there are two basic options:

SSDI: social security disability insurance
This is the one you pay into (or earn credits toward) while working. It generally pays more than SSI and they don't limit your assets before providing benefits. You are elligible for Medicare, the same insurance for those 65 and older.

vs

SSI: supplemental security income
This assistance is only granted once you have spent away your assets, down to about $2000 (you are also allowed to have a car). You are only entitled to Medicaid and it pays less than SSDI (about $400/mo), essentially leaving you in poverty.

Following is the link to the number of credits needed per age group to qualify for SSDI. If you don't have enough credits, I'd seriously consider getting disability insurance, even though it may not pay out a lot:

http://www.socialsecurity.gov/retire2/credits3.htm

Good point. Even if initially your disability is based on residents income - something is better than nothing.

Don't count on government disability (medicare etc). Not just because of the financial debacle the country is experiencing and which will probably worsen under Obama's style of management - but I have known many many people with what appears to be serious disabilities (I am not impairment rating trained or a disability expert) but who could not get disability income from the government. On the other hand I do know a doctor who struggled with an alcohol addiction and got a monthly disability income because of their alcohol addiction.

 

[dragonfly99]

Just FYI, most residencies provide disability insurance to the residents, usually at no cost (and you can usually buy more for a supplemental fee). However, most of these policies will only cover you if you cannot work at ANY job. For example, if you are a surgery resident and hurt your hand and get a head injury, but can still work in the mail room, they could theoretically give you a job in the mail room, rather than paying you disability. However, one can buy "own occupation" disability insurance that would pay off any time you become too sick/ill/disabled to work in one's chosen occupation - this of course will cost more.

 

[DisabilityQuote]

FYI, you usually can only get disability insurance to cover your current salary, not your potential future salary. Hence, disability insurance as a resident will only get you a resident's salary -- better than nothing, but not usually what people are looking for.

This is just not correct. Resident physicians are eligible for special issue limits with all of the major insurance carriers. They will issue up to $5,000 per month now, and put optional riders on the policy to protect even higher amounts. Meaning you can protect up to $100,000 of income right now, regardless of your current earnings...and even higher amounts through the future increase option riders.

Following is the link to the number of credits needed per age group to qualify for SSDI. If you don't have enough credits, I'd seriously consider getting disability insurance, even though it may not pay out a lot

Regardless of how much you qualify for in SSI or SSDI, don't ever rely on the government for your income protection. Your ability to earn a living is your most important asset, and no program from the government will ever offer you the level of protection that you can get through a quality non-cancellable individual disability insurance policy.

Every physician should be looking for a few things in a disability insurance policy:

1. Own-Occupation Definition of Total Disability To Age 65 or 67
2. Non-Cancellable & Guaranteed Renewable
3. Residual Disability Rider (Preferrably w/out time or duties requirement)
4. Maximize the FIO Rider
5. Have a COLA rider