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Resident Disability Insurance Max Amount not allowed due to future employer

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  • Resident Disability Insurance Max Amount not allowed due to future employer

    Hello,
    Im a PGY4 and currently have guardian 4k with 12k future increase option since 2018.

    My colleague who also had the same 4k/12k policy (but with another agent) recently purchased another $3500 of guardian policy to max the current limit for residents which I am told is 7500 this year. She did this to take advantage of her resident discount before graduating in June 2021.

    I too will be graduating in June 2021 and was trying to see if I could max out and purchase another 3500 as well instead of using the 12k increase option. However, my agent told me that because I had signed a new contract with a set start in august of this year with a future employer (who will be providing free long term group disability insurance) he said I would not be able to max or do the extra 3500 coverage. He also said that I can only increase another $4650 out of 12k of my future increase option instead of purchase extra 3500, due to the fact that my future employer in august will be providing me with group long term disability. He said even though I have not started the job but because I have officially signed the contract, I would not be able to increase the full 12k or max out my resident limit up to 7500 (including my current 4k) as stated above. He said that I can purchase a 3500/mo extra coverage if I really wanted to, but that it won't be clean and that once guardian communicates with the disability company my future employer offers, i would not get the full benefit if I were to get disabled.

    I know my group disability is not going to be as good as the guardian so I wanted to get extra coverage but because of the fact that I will be eligible for group long term, I cannot purchase extra guardian coverage, but only use portion of the future increase option.

    How come my friend was able to do the full 3500 to get up to 7500 but I couldn't? Did my friend's agent screw up or is my agent missing something? Does anyone have any advice or insight in terms of this?

    Thank you so much in advance.



  • #2
    The reality is your agent is wrong, this happens all the time when an agent is not experienced working with doctors. You can use the New Doc entering practice limits which are $7500.
    Scott Nelson-Archer, CLU, ChFC
    281-770-8080 Direct / [email protected]

    Comment


    • #3
      Originally posted by Scott at MD Financial Services View Post
      The reality is your agent is wrong, this happens all the time when an agent is not experienced working with doctors. You can use the New Doc entering practice limits which are $7500.
      Thank you!

      Comment


      • #4
        Originally posted by Scott at MD Financial Services View Post
        The reality is your agent is wrong, this happens all the time when an agent is not experienced working with doctors. You can use the New Doc entering practice limits which are $7500.
        Scott, after how many years does the $7500 limit go away?

        Comment


        • #5
          2 years typically
          Scott Nelson-Archer, CLU, ChFC
          281-770-8080 Direct / [email protected]

          Comment


          • #6
            Originally posted by Scott at MD Financial Services View Post
            2 years typically
            Do you mean it's available for anyone graduating from residency within 2 years? how about for guardian specifically? Also, does guardian count age by 6months instead of yearly for disability?

            Comment


            • #7
              Originally posted by Ponyo View Post

              Do you mean it's available for anyone graduating from residency within 2 years? how about for guardian specifically? Also, does guardian count age by 6months instead of yearly for disability?
              The New Doctor in Practice limits are there for folks that don't have an employment contract thus they have no guaranteed money because of that the carriers will issue certain amounts based on one specialty and assumed income they will then make for the first 2 years in practice. After 2 years then it is 100% dependent on what amount of income you have been making and reporting. If you have not yet started as an attending we can use that guideline as well but only until the day you start as an employee.

              I am not sure I understand your exact question about 6 months but I am going to guess that you are referring to how some carriers go by what is called 'nearest age banding' meaning that if you were born on December 1st of 1990 then currently you currently 30 but your nearest age is 31 thus some carriers will charge you the age 31 rate vs. age 30. If I am understanding that question correctly then the answer would be No Guardian does not do nearest age banding on their Disability Insurance.
              Scott Nelson-Archer, CLU, ChFC
              281-770-8080 Direct / [email protected]

              Comment


              • #8
                Originally posted by Scott at MD Financial Services View Post

                The New Doctor in Practice limits are there for folks that don't have an employment contract thus they have no guaranteed money because of that the carriers will issue certain amounts based on one specialty and assumed income they will then make for the first 2 years in practice. After 2 years then it is 100% dependent on what amount of income you have been making and reporting. If you have not yet started as an attending we can use that guideline as well but only until the day you start as an employee.

                I am not sure I understand your exact question about 6 months but I am going to guess that you are referring to how some carriers go by what is called 'nearest age banding' meaning that if you were born on December 1st of 1990 then currently you currently 30 but your nearest age is 31 thus some carriers will charge you the age 31 rate vs. age 30. If I am understanding that question correctly then the answer would be No Guardian does not do nearest age banding on their Disability Insurance.
                Thank you for your response. So I have already signed a contract to start in August 2021. So would that disqualify me for the for the new doctor in practice limit?

                Comment


                • #9
                  Nope because you have not started.
                  Scott Nelson-Archer, CLU, ChFC
                  281-770-8080 Direct / [email protected]

                  Comment


                  • #10
                    Originally posted by Scott at MD Financial Services View Post
                    Nope because you have not started.
                    Thank you!

                    Comment


                    • #11
                      I think you need a new agent. Just saying. The commission is nonnegotiable, but should be earned. Hint.

                      Comment


                      • #12
                        Originally posted by Tim View Post
                        I think you need a new agent. Just saying. The commission is nonnegotiable, but should be earned. Hint.
                        Thank you! I decided to change agent who was more well versed in doctor disability.

                        Comment


                        • #13
                          I hope you considered one that responded to your questions. He advertises supporting the site and provides expert advice for free here. He makes a living primarily as an expert on DI business.

                          Comment


                          • #14
                            Originally posted by Scott at MD Financial Services View Post
                            Nope because you have not started.
                            scott, I had started my current job under a guaranteed salary and an agent told me I’d only qualify for the “new to practice limits”...even though I had already been employed for 4 mths and my salary guarantee was way more.
                            seems like that was incorrect...
                            thoughts?

                            Comment


                            • #15
                              There are always variables that present themselves. If you can put your information into the application correctly and accurately then if the carrier issues the policy you will be all good. What you have to watch for is that sometimes your information may not be entered accurately, if that is the case then the insurance carrier may not be liable because the information presented for them to base the decision on was not accurate.
                              Scott Nelson-Archer, CLU, ChFC
                              281-770-8080 Direct / [email protected]

                              Comment

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