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New higher FIO limits of up to $12,000/month
tax free!
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Most medical residents and interns have insurance coverage on
their autos, but not their future income. If their future earnings ended because of an accident, injury or illness, the loss
of income could cause serious financial problems.
A solution? A comprehensive individual disability insurance
policy for medical residents, fellows and interns can help replace the loss of income due to disability.
At
Physician Financial and Insurance Services, physicians are our specialty! We have been working with medical residents, fellows and
interns since 1993. We have a unique understanding of doctors’ needs, schedules, and rotations.
WHAT ARE THE CURRENT INDIVIDUAL DISABILITY INCOME BENEFITS OFFERED TO MEDICAL
RESIDENTS?
Own occupation speciality specific coverage of up to $4,000/month tax free for Interns and 2nd year residents, and $5,000/month
tax free for 3rd year and beyond residents/fellows.
Benefit period to age 65, 67 or lifetime.
NEW increased
limits are available with Future Increase Option (FIO/FPO) of up to $12,000/month, which is in addition to the base monthly
benefit of $4,000-$5000/month depending on your year in residency. You can eventually purchase up to $16,000/month tax free.
Many policies offer this optional feature that will allow you to increase the amount of your benefit when your income increases,
even if your health has changed.
Graded or level premium plans.
Non cancelable and guaranteed renewable.
AS A MEDICAL RESIDENT, WHY IS RIGHT NOW THE BEST TIME
TO BUY A DISABILITY INCOME PLAN?
How would you repay your student loans
if you were disabled? Your student loans do not go away if you are injured and can not go back to work.
Rates
are based on your age, gender, occupation and health status.
Physicians have physically demanding occupations,
which lead to having a higher risk of disability than other professionals.
If you buy a policy before you declare
a specialty, you lock in your rates at a better occupational classification than you may be able to qualify for in the future.
These lower rates won’t change even if you decide to opt for an invasive specialty later on. You may consider adding a cost of living (COLA) benefit rider to your policy early on in your
medical training. For a nominal monthly premium, this COLA benefit rider would protect millions of dollars
more in future income if you were to become totally disabled during your medical training. ARE DISCOUNTS AVAILABLE ON INDIVIDUAL DISABILITY INSURANCE
POLICY'S FOR RESIDENTS AND FELLOWS? Yes. Some of the insurance carriers we work with will offer a discount for residents who purchase individual
disability insurance plans during their training. The discount remains even when you leave medical resident training. Contact
us to find out if your hospital endorses a disability insurance carrier. GROUP DISABILITY PLANS OFFERED BY YOUR HOSPITAL
Many group (hospital) disability plans have a very restrictive definition of disability. They require you to be totally
disabled before they will pay a benefit. If you have the ability to do any type of work, benefits may not be payable or if
you are working in another occupation your benefits are reduced.
Group plans may be amended, changed or terminated
at any time. This could leave you without coverage when you need it.
Most group plans can’t be taken with
you when you finish residency. To obtain a personal policy, you must undergo a medical exam. Your age and health will determine
your rate.
Most residency group plans will offer a benefit between $1,500- $3,500/month. Due to the nature of
group plans, this benefit may be taxable leaving you with a lower net benefit.
DISABILITY INSURANCE PREMIUMS ARE BASED ON 5 MAJOR FACTORS:
AGE
The price of a disability contract is based on the
age of the applicant at the time of purchase. The younger a person is, the lower the cost of the policy. If the contract is
non-cancelable and guaranteed renewable, then the price will never go up as long as you keep your policy.
OCCUPATION
Insurance companies have determined that people
in some occupations have a greater risk of becoming disabled than people in other occupations. In the medical industry, surgeons,
anesthesiologists, emergency medicine, and other specialists who perform invasive procedures statistically have more disabilities
than other non-invasive specialists. Thus, insurance companies will charge more for disability insurance to cover a surgeon
than a radiologist.
HEALTH STATUS
An important factor
in determining the rate for disability insurance is your health. Generally, the healthier you are at the time of application,
the lower your rate. Most people’s health tends to be better at younger ages; therefore, rates tend to be lower. Once
a policy is in force, future changes in health will have no effect on the premium. A major risk of waiting to buy a policy
is a change in health status. For example, if you were to injure your back in a car accident prior to buying disability insurance,
your back may be excluded in any future policy you were to purchase.
SMOKING
STATUS
Non smokers normally receive a 10-15% discount, which can save thousands
of dollars inpremiums over the course of your working career.
GENDER
Many companies charge a higher premium rate for females, so it becomes even more important for females to obtain
individual disability income insurance early. We have resident discounts at some hospitals, which can help reduce premiums
for females.
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