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Hi all. First time long time...
I'm a graduating resident this July and have begun navigating the disability market. I have read the 5 part WCI post on disability and spoke to several attendings and insurance brokers/FAs re: various riders etc... My question is kind of straight forward: Should residents signup for disability prior to completing residency?
Not sure if you know this but there is a push for residents to sign up for disability prior to graduation, the two major points are to:
1) Lock in a resident discount that amount to 10-20% off
2) Avoid having to factor in group disability provided by your post grad employer
I will do my best to explain my understanding/misunderstanding and possible issues with each. Again the big question is should I move forward with this now or wait?
Thanks in advance.
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Locking in a resident discount that amount to 10-20% off:
- Many of the major insurance carriers offer resident specific discounts ranging up to 20% off the total premium (inc riders) for the policy in perpetuity. We are told this is to establish a relationship early with the expectation that most doctors do not switch providers.
- The policy would initially be written to cover a resident salary and therefore would require an FIO rider to allow you to increase the coverage as your income increases. The discount would continue to apply with the new premium. But this rider, like all riders is not free and comes at a cost, which may offset the discount
- Is this "discount" akin to a mattress companies seemingly never ending discount? On July 2nd will there be a new "new attending discount" for 10-20% off?
- Locking in a discount seems like it may be good but I would be tied to a carrier and when it comes time execute the FIO rider to increase my coverage I'm concerned they will not have an incentive to offer a competitive premium.
To avoid having to factor in group disability provided by your post grad employer:
- The way this was explained to me is you are only eligible for a certain amount of total disability and this factors in any and disability coverage you receive. My new group has a group disability policy which provides very strong short term disability but the long term disability ends after only 2-3 years of payouts. I’m told this would interfere with the coverage I would be eligible for receive and if I suffered a major injury since the group policy would end after 3 years I would not be fully covered.
- The counter to this would be that if you do not plan to max out your coverage this may be a moot point. That seems like that may vary depending on your fams financial insurance.
If you made it this far, thanks again and forgive my ramblings
I'm a graduating resident this July and have begun navigating the disability market. I have read the 5 part WCI post on disability and spoke to several attendings and insurance brokers/FAs re: various riders etc... My question is kind of straight forward: Should residents signup for disability prior to completing residency?
Not sure if you know this but there is a push for residents to sign up for disability prior to graduation, the two major points are to:
1) Lock in a resident discount that amount to 10-20% off
2) Avoid having to factor in group disability provided by your post grad employer
I will do my best to explain my understanding/misunderstanding and possible issues with each. Again the big question is should I move forward with this now or wait?
Thanks in advance.
-----------------------------------------------------------------------------------------
Locking in a resident discount that amount to 10-20% off:
- Many of the major insurance carriers offer resident specific discounts ranging up to 20% off the total premium (inc riders) for the policy in perpetuity. We are told this is to establish a relationship early with the expectation that most doctors do not switch providers.
- The policy would initially be written to cover a resident salary and therefore would require an FIO rider to allow you to increase the coverage as your income increases. The discount would continue to apply with the new premium. But this rider, like all riders is not free and comes at a cost, which may offset the discount
- Is this "discount" akin to a mattress companies seemingly never ending discount? On July 2nd will there be a new "new attending discount" for 10-20% off?
- Locking in a discount seems like it may be good but I would be tied to a carrier and when it comes time execute the FIO rider to increase my coverage I'm concerned they will not have an incentive to offer a competitive premium.
To avoid having to factor in group disability provided by your post grad employer:
- The way this was explained to me is you are only eligible for a certain amount of total disability and this factors in any and disability coverage you receive. My new group has a group disability policy which provides very strong short term disability but the long term disability ends after only 2-3 years of payouts. I’m told this would interfere with the coverage I would be eligible for receive and if I suffered a major injury since the group policy would end after 3 years I would not be fully covered.
- The counter to this would be that if you do not plan to max out your coverage this may be a moot point. That seems like that may vary depending on your fams financial insurance.
If you made it this far, thanks again and forgive my ramblings
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