May 23, 2008, Newsletter Issue #14: How Rates Are Determined in a Disability Insurance for Medical Residents Policy

Tip of the Week

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. Rate calculation is predominantly a statistical issue. If you are an Olympic-level athlete, your rates may be less than a comparable “couch potato.” But disability insurance companies understand that resident physicians work incredible hours in stressful situations every month. These conditions lead to an increased possibility of injury or illness. All of these factors are evaluated in the computation of the rates for disability insurance for resident physicians.

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.

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