By Tom Strangstalien, Insurance Advisor
As a resident or fellow, your biggest asset is quickly becoming your ability to earn an income. Until you become independently wealthy and can sustain a loss of earning power without consequence, it is imperative to have disability protection. But why do this as a resident or fellow, before the dramatic income increase of becoming an attending physician? Can you wait, get on my employer benefits group plan if applicable, and purchase supplemental personal disability insurance when I can better afford it? There are several reasons why this may not be the best choice as you build your overall financial plan.
While a medical resident or fellow, you are entitled to a base amount of coverage without being required to provide proof of financial qualification. Additionally, WisMed Assure works with several insurers that provide discounts to many of the residency programs. Furthermore, Wisconsin Medical Society Members are eligible for even more discounts. Throughout your career, these savings can add up to a monumental amount of money.
Disability insurance protection increases in cost as we age – it will be more expensive every year. By getting a policy early in your career, you’re locking in the price while it’s the most affordable. Another consideration is to purchase a future increase option at this time, where you can increase your protection as your future income increases, without the imposition of any more medical underwriting.
Group disability insurance coverage is a wonderful benefit, and I almost always advise to enroll for the maximum group benefits that you are eligible for, however it often has limitations. It may be capped at an amount that is insufficient to replace your total income if disabled. Portability is also a concern – if you change employers or career paths, the coverage will be lost. Almost always, group coverage contains offsets where any benefits attained from other sources will decrease the benefits paid out by group coverage. A solid personal disability policy, specially designed for physicians and those in the medical field, addresses these inherent risks.
So where should you obtain this vitally important coverage at the most affordable price? Only purchase personal disability insurance coverage through an independent agent who can offer plans from multiple companies. Never allow yourself to be sold a policy by a representative who offers only one plan, and thereby has an innate conflict of interest. The plan should be designed for you, not just a standard policy.
WisMed Assure exists for your benefit and offers plans from the Big 5 insurance companies, with plans specifically designed for physicians. Reach out to us and let us design a plan that fits your needs. James Dahle, MD, of The White Coat Investor states, “Early in residency, buy as large of a high-quality, specialty-specific, own occupation, individual disability insurance policy as an agent is willing to sell you.” Take care of this urgent financial chore today.