[The following article is written by one of our supporters, Pattern. They specialize in providing true-own occupation disability insurance as well as term life insurance. All physicians need to consider this coverage up until they are financially independent. -Ed]
Protecting your income is important. We can all agree on that. Although insurance isn’t always the first priority on your list it is crucial to your financial plan. Disability insurance replaces a portion of your income if you are unable to work due to illness or injury. When looking at protecting your income, it can be so complicated and expensive. So when you’re deciding when to purchase your policy training may not seem like the ideal time to consider that obligation.
With the end of training approaching, here are 5 reasons why it is important that you obtain disability insurance before the end of your training program.
1. Lowest Premium Rates
You’ll never be as young as you are now–getting disability insurance as a resident will keep your premiums low.
One of the biggest determining factors for your insurance prices is your age. Typically speaking the younger you are, the healthier you are.
Not only may you get a lower rate because of your age, but you may also be less likely to have health conditions that could result in policy exclusions of coverage.
Since disability insurance rates never change, you want to secure your policy as early in your career as possible. Don’t wait until you are in your forties or fifties to get disability insurance, since premiums will be much higher than in your twenties or thirties.
2. Protect Your Entire Income
You have spent thousands of dollars and hours investing in medical school and your training. After all, is said and done, your career is dependent on you.
Your future earnings ability is your most valuable asset.
By purchasing disability insurance at the beginning of your career you are protecting your entire income. With the risk of injury or accident that could hinder your capabilities to perform your duties, disability insurance is vital to your financial security as it is the replacement of income in the event that you are not able to work.
Obtaining disability insurance as a resident means you’re eligible for discounts.
This discount option is available in most cases to individuals who purchase their policy in medical school or training prior to graduation, which is why it is important to lock those discounts in before you graduate and become ineligible.
Training program discounts can bring down your premiums by up to 40%. These discounts can save you thousands of dollars as they will last the lifetime of your policy.
4. Protect Yourself from Health Risks
Your health is something that determines your cost. The healthier you are, the lower your cost will be. Injuries and/or chronic conditions could prevent you from getting covered in the future.
If you get medical approval for coverage now, you will protect yourself from the impact of potential injuries and chronic ailments in the future.
5. Security in the Current Market
The insurance marketplace is volatile–getting disability insurance now will make sure that the provisions you have will not change, no matter the changes in the market.
There are currently favorable contracts specifically available to residents that protect their occupation and medical specialty. As we’ve seen recently, however, the insurance market may suddenly end the availability of certain plans, which further limits the options for medical professionals.
Getting a policy while you are still in training can save you a lot of money in the long run.
So when considering the best price and the best time to buy your policy, keep this in mind. By taking five minutes to fill out a quote request you can see what you would pay for your medical professional specific policy. If you are ready to get your quotes, fill out a quote request here!