Disability Insurance for residents about to finish training

[JR]

Hi,
I’m currently a fellow, starting as an attending in August. Never had DI and thanks to a friend who put me in contact with the WCI book, I’ve realized I need to buy a DI policy ASAP. I’ve talked to an agent offering a plan from Principal to residents and fellows with a discount through the University. After extensive research I think a $6000 monthly benefit for $2400/year with some added important riders like Regular Occupation, 3% COLA, Residual Disability and Recovery Benefit, seems competitive in today’s market. My problem is that my blood work showed hypercholesterolemia (7 years of poor resident/fellow’s lifestyle, #wake u call) and Principal will approve the policy without any surcharges but won’t include the Benefit Update rider and is proposing to repeat blood work in a year in order to change this. Is this a fair deal?, considering that I would have to demonstrate evidence of medical insurability again, or should I try to find a different company/agent? I would love to lock in the current rates for the state I’m living in and the premium's discount offered through the Univ.

[LBKCLU]

As a graduating fellow ("New In Practice" Physician), you automatically qualify to purchase up to $7,500 month (depending upon the specific insurance company) regardless of your earned income or futur employer provided LTD coverage, if any.

How high was your cholesterol? Did you register online to be able to view your lab results? If not, you should.

You can then ask your agent (or another agent) to discuss the results with the underwriters at other companies to see if you would qualify for a standard premium rate with the ability to increase your coverage, regardless of your health, as your income rises.

If not, Principal's policy is generally a very a good value in today's marketplace - especially for females when a unisex rate and discount is available.

Otherwise, worst case, is that you do the labs again next year and look at add the FBI and BU Riders at that time. However, if you qualify elsewhere to have the ability to increase your coverage in the future with standard rates with another carrier today, that would be a better rout to take.

[JR]

Thanks for your comments. My cholesterol was 259 and TGs 400. I did register online to see the results. I repeated the lab work because it was not a fasting blood draw the first time and it was again 259 but the TGs a little better at 270. I would certainly follow your advice and ask the agent about options with different carriers and get " a second opinion" from a different agent.