Shielding your income is among the smartest financial decisions a doctor can make. Residency may be the best time to have quality doctor disability insurance. There are reductions available at most teaching hospitals throughout your residency. Additionally, your GME application could be offering a particular Guarantee Standard Issue (GSI) software, which lets you get quality disability coverage without medical underwriting.

The standard medical underwriting procedure is made up of physical examination, blood and HIV evaluations, prescription drug checks, as well as a review of previous medical records. It might have a request for fiscal data, including tax returns or a replica of an employment contract, as evidence of any income that could be guaranteed to you personally. Through this method, it’s normal for doctors or residents to have changed policies issued with exclusions and standings. This is a result of something as trivial as taking medicine for anxiety during medical school. Where accessible for you, the GSI software lets you get the exact same policy that everyone else must qualify medically for. Additionally, it provides significant reductions that can’t be got elsewhere. Savings for female doctors may be just as much as 50% from the standard premium.

For example, let’s say a 38-year old doctor became disabled with $12,500 of monthly disability benefits. The cumulative benefit that the doctor would receive by the age of 67 would be up to almost 7 million dollars, sans tax!

The younger you are, the more affordable doctor disability insurance will be. Just like most forms of insurance, the older we get, the more costly it becomes. If we compared a 30 and 40-year old doctor, the 40-year old would pay more in premium on the length of the policy than their younger counterpart. While the 40-year old waited an additional ten years before receiving a coverage, the larger premium at their age can lead to an increased sum of total premiums to be paid. Waiting is not going to save you cash!

Can you have disability insurance and not require it, or not have disability insurance and WANT it?

As a resident, your doctor disability income coverage should shield you within your particular medical specialization. For instance, if your cardiologist cannot perform the obligations of a cardiologist, they may continue collecting impairment income benefits, even though they continue working in a different profession, i.e. as a consultant or in another specialization such as pathology. Other significant coverage choices are:

  • Future Purchase Option: Lets you collect benefits if you’re working part time and endure a loss of income.
  • Parital and Residual Disability Benefits: Increases monthly benefits to keep up with inflation.
  • COLA aka Cost of Living Adjustment: Lets you raise coverage later on, irrespective of any health changes.
  • Noncancelable: Granted premiums.

Recall the very first rule of insurance: Assure what you least can actually afford to get rid of. In this instance, it’s your capacity to bring in an income.


photo credit: Stanford Medical History Center cc