Pls Help Me Decide Between Guardian and UC Policy

[ashvash]

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Hi all,

I was just approved for both Guardian and UC. I am an emergency medicine resident graduating in a few days and moving to Houston for a job in an ER.

i have hypertension and hypothyroidism. i am 32 years old. there are no exclusions in the policy. please see attached UC and Guardian policy proposals. again, i have been approved and these are the final figures.

the guardian agent says guardian is the best. i am getting a 10% disc with them. UC is giving 15% thru AMA, and also they said if I get DI thru them, UC will give me the preferred best rate for term life 30 year, $3M, which is a product i also want.

any suggestions on which to go with will be appreciated. the guardian agent is working on their term life policy, so i have not seen those figures. he says UC has a lower DCI rating or something. i am not a financial person, and this stuff is confusing i thank you in advance for your input.

 

[southerndoc]

That's probably a good quote from Guardian.

 

[ashvash]

hi all, thank you for the replies. I want 10k benefit. the union guy re-ranit and says it will cost $3987.00 per year:
Union 10K:
Base Monthly Benefit
Elimination Period: 90 Days
Maximum Benefit Period: To Age 67
$10,000 $289.52
Total Monthly Benefit $10,000 $289.52
Potential Annual Base Benefit ($10,000.00 x 12 months) = $120,000
*Potential Cumulative Base Benefit ($10,000.00 x 12 months x 36 years) = $4,320,000
Definition of Disability: Own Occupation
Base Policy Features
Nondisabling Injury Benefit $3,000 No Charge
COBRA Premium Benefit No Charge
Survivor Benefit No Charge
Good Health Benefit No Charge
Presumptive Total Disability No Charge
Surgical Transplant Benefit No Charge
Cosmetic Surgery Benefit No Charge
Rehabilitation No Charge
Waiver of Premium No Charge
Optional Riders Selected
Enhanced Residual Disability Rider (Required for Medical Occupations) $45.75
Cost of Living Adjustment Rider (COLA) 3% Simple $49.10
Future Increase Option Rider (FIO) $5,000 $19.02
Discounts
Premium Before Discounts: $403.39
Association Discount 15% -$59.91
Total Monthly Premium $343.49
Annual $3,987.45
Semi-Annual $2,036.19
Quarterly $1,039.34

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so the guardian is $5188.00 for 10k, difference of about $1200.00 between the two. guys, what is the difference between cola 3% simple (union) versus, as guardian cola 3% compounded? which is better? can i ask union to give me compounded if that is better? also, i asked the union guy to re-run at 90 days waiting period, so now it is more apples to apples.

thanks all!!

 

[southerndoc]

Compounded COLA is better. 3% COLA simple will only add 3% to your $10k benefit. So in 20 years of disability, you'll only get 3% x 20 of $10k. Compounded will add 3% on top of the previous year's 3%. So for year two, you would get 3% of 10k+3% for year 1 ($10,300 + 3% = $10,609 instead of simple which would be $10,000 + 3% for 2 years would be $10,600).

Although it doesn't seem like much, it adds up over many years.

A 90 day waiting period is probably all you need. Getting down to 45 days or 30 days gets expensive. You should have 6 months of living expenses on hand at all times anyhow. If you have trouble credentialing at a hospital, you may want to have a year's living expenses saved in an emergency fund.

The most important things to look at with your policy quotes:

- partial disability
- own occupational disability (if you're an ER doc, get injured and can't work as an ER doc, they still must pay you full disability if you do another residency and become a radiologist)
- no cancellation

Be prepared for a very in-depth screening process. Do not try to hide anything on your application because it will be grounds for them to cancel your application.