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. Inquire about discounted disability insurance plans today!
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,
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.
Discounted Disability Insurance Plans for interns, residents and fellows
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.
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.
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:
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.
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.
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.
smokers normally receive a 10-15% discount, which can save thousands of dollars inpremiums over the course of your working
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.