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Can employers require individual disability insurance?

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  • Can employers require individual disability insurance?

    Current resident here. I've obtained my own personal disability insurance plans to replace the DI plan offered through my GME department. The plans I have obtained are for the max 5k/month benefit as a resident and include all the necessary riders specified by WCI. However, my GME department is giving me a hard time, saying I am not allowed to cancel the GME-sponsored disability plan (per their policies). The GME plan is an individual plan (not group) but aside from that lacks basically everything WCI thinks is important. So if I have to keep it then I have to lower the monthly benefit for my personal plans to stay under the 5K limit. My question is - can my GME program require us to buy their individual DI plan? I would think that they could require us to participate in a group plan, but I wouldn't think they could require participation in an individual plan.


  • #2
    Is the GME individual plan employer paid or is it paid by you?

    I have seen residency programs require that the residents/fellows have coverage inforce, but if you have documentation that you are insured elsewhere, it is usually not an issue.


    Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF


    • #3
      I pay for the premium. Our GME program does give an additional "bonus" for "participating" but the cost is paid for by me.


      • #4
        If they bonus you to have it then it really is not costing you anything since they are in effect paying for it but I also understand it is a revenue source you would like to re-direct to a quality plan that you purchased yourself.  If it is payroll deducted you might need to wait until open enrollment and then not select it to be deducted but if it is a personal bank drafted policy then you can easily stop it at your bank.
        Scott Nelson-Archer, CLU, ChFC
        281-770-8080 Direct / [email protected]


        • #5
          Not necessarily in your situation, but disability insurance may be paid as part of a resident's union dues, in which case it is a mandatory voluntary payment that can't be undone, at least not while a member of the union, which is representing the interests of 14,000 residents/fellows, during residency/GME.

          Learn more about the Committee of Interns and Residents: