Medical residency is when many young doctors begin to consider purchasing a personal disability insurance policy. There are many reasons for this, including the financial responsibility of raising a family and the simple desire to protect the individual's ability to earn and the time and money invested in becoming a doctor. For whatever reason, medical residuals should consider many issues when purchasing disability insurance.
Consumer friendly policy language and features
When reviewing multiple strategies, be sure to compare the contract features before comparing prices. Pricing is an important factor, and you should make sure you don't have to pay more than you have to pay for a certain level of coverage. However, each disability insurance policy is different from the next one, and you must ensure that you fully understand the benefits offered by each policy before comparing prices. As a young doctor, it's important to make sure that when the policy itself is actually apple to orange, you won't compare pricing to apple to apple.
Consider your cash flow
Some companies offer tiered or loan premium plans that require lower premiums today and will continue to increase in the future. While this type of structure does not allow for a lower level of premium at the moment, it may be the perfect solution, depending on your situation. This allows young doctors to get disability insurance when they need it, but it doesn't have much impact on cash flow. Once you adjust to the income level of attendance and your cash flow is more flexible, you can convert the policy into a premium. The future level premium will be higher than today, but the extra cash flow during the stay may be a good fit for this option.
Consider the opportunity to save
Most insurance companies that offer comprehensive and competitive disability insurance to doctors today can offer discounts to doctors who apply during medical training. Just because you are told that a particular company's discount does not mean that they are the only discount option available for your GME program. You should review and compare alternatives before choosing to apply to any insurance company.
Disability insurance pricing
Through the occupational classification unique to each insurance company, the pricing of disability insurance is adjusted for the risk of becoming a disabled person in a specific occupation. As expected, there are price differences between various medical professions, with surgeons and anesthesiologists being one of the most costly pediatricians with the lowest cost.
Work with independent agents
Finding a truly independent agent can be a daunting task. Although many agents may claim that they are independent, they will still establish a degree of contact with a particular insurance company. This is a way for financial professionals to get access to habitual employee benefits such as medical/dental insurance, 401[k] plans. The important thing is not necessarily to find an independent agent, but an independent agent – one does not want to sell you to a particular company, but to make the best policy for your situation. You should work with people who review multiple options and help you decide the most appropriate policy for you.