Disability Insurance for Medical Residents Tips
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Income Benefits You Can Typically Expect With Resident Physician Disability Insurance
All disability insurance coverage is based on replacing some percentage of your current income in the event you suffer an injury or illness that prevents you from completing the employment responsibilities. Typical benefit levels are in the range of 50% to 60% of regular monthly income, although higher limits are sometimes available. Disability income insurance for medical residents does not significantly differ from the standard, but there are sometimes special considerations made for physicians in training.
Maximum benefit levels may be determined by the companies providing this coverage for resident physicians. You will learn by consulting knowledgeable websites like ProtectYourIncome.com that some companies understand the inherent differences in issuing income insurance for medical residents.
Regardless of your number of hours worked and compensation received, you may be allowed to more or less “pick a number” and set a benefit level that you can afford. Typical benefit levels range from around $2,000 to $3,500 pre month. Some insurance companies are willing to be more agreeable and/or liberal with benefit amounts as they are aware that you'll only be a medical resident physician for a relatively short period of time. Upon completing your residency requirement, you will enter the world of practicing physicians, at which time your income should normally enjoy a serious increase.
You should be able to locate adequate coverage amounts now and have the ability to increase your monthly benefit levels accordingly after your disability insurance for medical residents insurance becomes your professional physician coverage.
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.
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.
Learn the Real Difference Between Short-Term Versus Long-Term Disability Insurance for Resident Physicians
The primary difference between short-term and long-term disability insurance for resident physicians can be found in the elimination (waiting) periods and the length of time benefits are payable. But, it's also important to note that each coverage may have other significant differences in language and/or definitions of disability.
Short-term disability insurance for medical residents often contain elimination periods of 14 to 30 days and will pay either a stated amount or around 50% to 70% of your residency stipend. Benefit periods are typically between 90 and 180 days.
Long-term disability insurance for resident physicians generally has elimination periods of 90 to 180 days and, once again, might pay a stated income level or a percentage of your stipend.
Should your medical school or employer offer both programs – or if you are going to purchase individual coverage while in residency – it is important that both plans be coordinated. For example, it makes little sense to have a benefit period of 180 days after a 30 day elimination period (short-term policy) and a 60 day elimination period with benefits payable up to 5 years (long-term policy) covering you at the same time. As you can see, the elimination (waiting) periods are mismatched and could be a source of confusion when claims are filed. This condition becomes more convoluted if the benefit amounts differ with each type of disability insurance.
Try to match your elimination period and benefit payment term with short-term disability coverage and your long-term disability insurance for medical residents so you are sufficiently protected and are not paying for benefits that you cannot use.
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.
Why You Should Get a Future Coverage Increase Provision in a Disability Income Insurance for Resident Physicians Policy
Income insurance for medical residents is now widely available. In addition to basic disability insurance for resident physicians, there are some important provisions you should consider adding to your program. As you serve your residency, you are in a somewhat precarious position, working the many hours required and frequently suffering sleep deprivation. It is also a given that your income may increase rapidly once your medical resident's duties are completed. One of the most important to consider is a Future Increase Option (FIO).
While you should have basic disability insurance for medical residents, you should also strongly consider protecting yourself in at least two other areas.
- Guarantee your future insurability. This often eliminates the risk that, should you suffer an injury or illness that projects to reoccur in the future, your ability to keep disability insurance is not in jeopardy.
- Guarantee your ability to increase your disability income insurance benefit amount as your regular income becomes larger. Having this option normally only requires you to submit your prior year's tax return to your insurance company to qualify for an increase to your monthly disability income level.
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.
How Rates Are Determined in a Disability Insurance for Medical Residents Policy
Medical resident disability insurance coverage rates are determined like most other health-related programs. Three primary factors are normally evaluated:
- Your age at the time of purchase of the coverage. The cost of disability insurance for resident physicians, like most health-related coverage, is strongly influenced by your age at the time of purchase. Statistics indicate that younger insureds are less likely to suffer covered disabilities than older people.
- Your occupation or specialty. Just as you would expect in other professions, your cost of disability insurance will be different if you're a race car driver versus someone who spends most of their time in diagnostics or sitting at a desk.
- Your health status. If, even as a medical resident, you have a medical history that projects future issues, your rates may be negatively affected. On the other hand, if you have a “clean” health track record and appear to have a bright medical future, your rates may be calculated at the best available level.
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.
Some Valuable Extra Features in a Policy for Disability Insurance for Medical Residents
Even though you are technically a medical resident and not a privately practicing physician yet, you may be eligible to choose some important options as part of your disability income coverage. While you may not have access to a full menu of additional options, you may have the ability to purchase some very important extra features.
- “Own-occupation” definition. You may be covered as part of your hospital safety and insurance program, but you may not have own-occupation coverage. A standard policy often states that, should you become temporary disabled, you may become ineligible for benefits once you are able to perform the duties of any gainful occupation. But own-occupation coverage means you remain eligible for benefits until you can return to practicing your profession.
- Future increase option. This feature guarantees your insurability and allows you to increase your monthly benefit amount regardless of your medical condition in the future as your income grows.
- Non-cancelable or guaranteed renewable ability. This feature, if available, would protect you against negative changes in your medical history in the future.
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
Why Disability Insurance for Resident Physicians Is an Important Consideration
Disability insurance for medical residents may be more important than it first appears. Its basic importance is easy to comprehend. Your student loans and living expenses will not go away should you become disabled while you're a medical resident. Although you're not yet in the upper income group, a monthly income benefit of $2,500 to $3,500 would be a most important help to your life should you become disabled while perfecting your abilities.
However, by getting disability insurance for resident physicians while you're in residency, you may be giving yourself protection for the foreseeable future also. By adding one or more options that may be available, you might guarantee your future insurability and earnings. There are at least three primary options you should seriously consider:
- “Own-occupation” definition of disability. Unavailable in most group disability plans, this classification means you are considered to be eligible for benefits until you are able to return to practicing your specific occupation, not just any gainful employment, as specified in many group policies.
- Future increase option. This provision allows you to increase your monthly benefit amount as your income increases regardless of your medical condition. For example, suppose you suffer a back or neck injury, while you're a resident physician, that could affect the performance of your profession at various times in the future. You may be ineligible for disability coverage or be required to have a “rated” policy (with higher cost) after you begin private practice. This could cost you large dollars for income protection for many years. This option would eliminate that discouraging possibility.
- Non-cancelable or guaranteed renewable option. You should consider this feature if offered as it will protect you from future insurability problems should you suffer an injury or illness while practicing as a medical resident.
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