New Attending Insurance/Disability Questions

[manuelmas]

Hello:

I recently started to work as an Attending Physician in a University hospital. I have read White Coat Investor in the past, but the influx of paperwork and information that comes with new employment has been overwhelming. Naturally, this has raised several questions:

Life-Insurance:

-The employer offers a basic life-insurance policy for 40,000 basic coverage. They offer additional coverage with a company called Dearborn National. Should I select No Additional Coverage with the University and shop around for term-life insurance on my own? Will having basic coverage from the employer (without any option of dropping it or getting my money back) affect private life insurance packages?

Disability:

-The employer offers Short Term Disability (60% of weekly salary, maximum of 22 weeks, cap of $693/week following 14-day elimination period) with Dearborn National. Should I use this or put No coverage and shop for my own?

-Same deal with Long-term Disability. The plan offers 60% of salary following 90 or 180-day elimination period with/without COLA through Standard. Should I choose No Coverage and shop around for my own?

 

If I do select private coverage for Life Insurance and Short-Term/Long-Term Disability, what companies  do you recommend? Should I choose same company for everything?

If you need any more information, please don’t hesitate to ask.
Thanks a lot.

[LBKCLU]

Yes, I would select No Additional Coverage if you are in good health. The premium rates for life insurance coverage through the hospital are expensive and the premium charged for their coverage will generally be what you could purchase with a level premium rate for 20 years by purchasing your own individual term coverage. Your individual coverage would also be portable in the event you change employers.

Generally, Short Term Disability insurance coverage is expensive and not needed if you have an emergency fund. In my experience, STD is typically purchased by females that plan on becoming pregnant in the not too distant future.

Just make sure that the Long-Term Disability coverage is voluntary. If it is, you are in good health and don't do activities that you might want to have covered like rock climbing (which would be excluded under individual policies), I would go elsewhere and purchase a discounted "Own-Occupation" policy.

Depending upon your gender and state or residence, you would look at Berkshire (Guardian), MetLife (keep in mind that they will no longer be selling individual disability insurance policies as of September 1, 2016), Standard, Ameritas, Principal, MassMutual or Ohio National. Many of these will be available with discounts through your hospital or professional associations.

I can easily help you if you send me an email or private message.

[manuelmas]

LBKCLU wrote:

Yes, I would select No Additional Coverage if you are in good health. The premium rates for life insurance coverage through the hospital are expensive and the premium charged for their coverage will generally be what you could purchase with a level premium rate for 20 years by purchasing your own individual term coverage. Your individual coverage would also be portable in the event you change employers.

Generally, Short Term Disability insurance coverage is expensive and not needed if you have an emergency fund. In my experience, STD is typically purchased by females that plan on becoming pregnant in the not too distant future.

Just make sure that the Long-Term Disability coverage is voluntary. If it is, you are in good health and don’t do activities that you might want to have covered like rock climbing (which would be excluded under individual policies), I would go elsewhere and purchase a discounted “Own-Occupation” policy.

Depending upon your gender and state or residence, you would look at Berkshire (Guardian), MetLife (keep in mind that they will no longer be selling individual disability insurance policies as of September 1, 2016), Standard, Ameritas, Principal, MassMutual or Ohio National. Many of these will be available with discounts through your hospital or professional associations.

I can easily help you if you send me an email or private message.

Click to expand...

Thanks a lot! I will be contacting you privately.