Uncover The Importance of Disability Insurance for Medical Residents
Disability insurance is as important for medical residents as it is for anyone. If a person's income earning potential is taken away, he or she can be looking at a bleak future. In the case of medical residents, hard work has poised them to earn a higher than average salary in a matter of a few years. Illness or injury now or at some future point can completely nullify that potential. Disability insurance is security for an insecure world in case the worse happens and you are robbed of those dreams. By getting it in place now, you can even guarantee your rates up to age 65.
Disability Coverage Available for Medical Residents
Many insurance companies offer special amounts of disability insurance coverage specifically for resident physicians and interns. These higher than usual limits do not reflect present salaries but rather future-earning levels that are all but guaranteed once you have made it to that point in your studies. Insurers recognize the path you have taken and where you are going financially. For this reason it is common to find disability insurance coverage of $3500 per month and more for residents. By opting to put this coverage in place now, you can even lock in the cost and coverage through age 65.
As soon as you have a written employment contract in the final year of your residency, you can put in place an even higher level of disability insurance. The agreement serves as your income verification, which is needed for the higher levels of coverage.
The standard offerings for disability insurance coverage include: $2500 monthly for medical interns, $3500 for medical residents and $4500 for physicians in their first year of practice. These numbers are guidelines and specific circumstances can be higher.
Residents Can Save on The Cost of Disability Insurance
While residents and physicians in their first years of practice know that higher income levels are on the horizon, that doesn't change the fact that they are living on a budget now. Therefore, keeping spending under control is as important for them as it is for anyone. A graded premium disability insurance program can help save money during this time, even as much as 25% of the guaranteed level insurance cost.
Basically the graded premium policy starts lower than the guaranteed level coverage and increases annually. However for those starting out it is a great option to save money. Just be sure there is an option in the policy to convert to a guaranteed level policy and do so as soon as possible. This preserves your insurability and gives you the best coverage you can get at the lowest rate possible.
Put specialized disability insurance for medical residents in place now and secure your future in a tangible way.