By Tom Strangstalien, Insurance Advisor
I recently worked with a young physician to set him up with personal disability protection to provide some financial security if life throws him and his family a curve ball. Prompting our planning was that one of his peers in the general surgery specialty sustained a serious hand injury, ending his ability to perform hands-on surgery.
He didn’t have personal disability protection, and although his group benefits offered some benefits, it fell well short of what he envisioned for himself and his family of four. Though he had looked into coverage in the past, he thought that it was too expensive at this point in his career. Why not wait until his income was more substantial and coverage was more affordable? Unfortunately, waiting changed his financial world forever.
Perhaps if our physician member had explored graded premium disability insurance, he would have elected to purchase the protection at a very affordable price, thereby protecting his income throughout his lifetime.
So, what is graded premium disability insurance? The premise is that as your income increases, your premium increases. Premiums start out at a much lower price early in your career, compared to traditional level premium coverage. Each year, premiums will increase slightly. When you’re on a tighter budget, it enables you to put the amount of coverage needed in place, and it can never be taken away. Making graded premium disability coverage more beneficial is that you can elect to lock in your premiums at any time you choose! In other words, you can convert to a level premium policy when your income and budget allows you to do so.
When I work with our residents, fellows and young physicians, we always look at graded premium plans as an option. We almost always package this with a future insurability option, so you are guaranteed to increase your benefits in the future, with no medical underwriting, as your income increases. You are able to put disability protection in place by using a graded premium plan, where you otherwise wouldn’t be able to do so. You always want to acquire the most coverage you can, and as early in your career as possible!
As a young member in the medical profession, don’t make the mistake of assuming your budget does not allow you to purchase disability protection. Yes, you can! Life happens and it truly throws us curveballs. Reach out to me and my team at WisMed Assure at insurance@wismedassure.org, complete this quick online form or call 608.442.3810, and let’s determine if a graded premium disability plan can protect your financial world!