Question:

Why Should I Consider an Individual Medical Resident Disability Insurance Policy If I Have Group Coverage?

Why You Should Consider an Individual Medical Resident Disability Insurance Policy Even If You Have Group Coverage?

Group coverage, paid for by your employer or medical school, is a wonderful benefit. The pros are obvious: It may cost you little or possibly nothing to get disability income protection while you are working overwhelming hours as a resident physician. However, there are some important reasons to consider purchasing individual disability insurance for medical residents. Here are just a few.

• Definition of disability. Many group policies have an “any-occupation” definition instead of an “own-occupation” clause. The first usually states that you've recovered from your disability when you become able to perform the duties of any gainful occupation. With “own-occupation” provisions, you are normally considered to be disabled until you can resume the duties of your specialty.
• Future Increase Options (FIO) are generally not available with group insurance. An FIO normally guarantees your future insurability and allows you to increase your monthly income benefit as your income rises.
• Portability. Once your medical resident's obligations are completed, you'll probably move on. Once you do, your current group benefits will cease and you'll have to consider purchasing an individual disability insurance policy anyway. If you do it now, while you're a resident physician, it may cost you less and provide more protection than applying for new coverage in the future. This issue can become particularly troublesome if your medical history changes for the worse during your residency period.

Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.