For an audio version of this post, please click on the speaker icon (top left).
Timing is everything.
Whether it be in the sporting world or the world of finance, missing a certain window of time can be the difference from hitting a home run or striking out.
This concept even extends to the world of Disability insurance.
When is the optimal time to sign a policy?
The following post addresses this very topic and is the third in a series from a sponsor of this blog, Pattern, about Disability Insurance.
- 5 Things Physicians Need To Know About Disability Insurance.
- The Different Types Of Disability Insurance.
Five Reasons to Purchase a Disability Insurance Policy While in Training
WHY BUYING NOW IS BEST FOR DOCTORS LATER.
We all understand the importance of insurance, and disability insurance is no exception.
Disability insurance replaces a portion of your income if you are unable to work due to illness or injury.
Protecting your income in the event of an illness or injury is a no-brainer, but when you start looking at your options it can get quite complicated and potentially expensive.
Being a resident in training may not seem like the ideal time to consider any additional financial obligations, but hear us out… because we are going to talk about 5 reasons why it is important that you obtain disability insurance before the end of your training program.
1. Your future earnings ability is your most valuable asset.
After all the countless hours and work you’ve put in so far, you would hate to have something set you back or take away all of that hard work.
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 provides the replacement of income in the event that you are not able to work.
Think of it this way: you have spent thousands of dollars and hours investing in medical school and your training.
After all is said and done, your career and your income is dependent on your ability to work and perform your required duties.
Disability insurance will give you the peace of mind that, if you have family or financial obligations, you will be able to meet those needs if you are unable to work.
2. Obtaining disability insurance as a resident means you’re eligible for discounts.
Residency discounts can significantly bring down your disability insurance policy cost.
If you are still a resident, you’re eligible for discounts of up to 40%.
These discounts can save you thousands of dollars as they will last the lifetime of your policy.
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.
Do you still qualify for discounts?
Although these discounts are specific to individuals in training, some companies will give you a grace period of eligibility.
These grace periods can range in length and are different for every company so it is important to get your quote request in as soon as possible to ensure that you will qualify for discounts and still have competitive options.
3. If you get medical approval for coverage now, you will protect yourself from the impact of potential injuries and chronic ailments in the future.
It is a challenge to try and predict the future as there are many unknowns.
One thing that often falls by the wayside is thinking about any adverse health events that may impact you.
When you are young and healthy you feel like you are invincible.
Unfortunately this attitude often de-prioritizes important actions such as getting disability insurance.
One advantage of getting disability insurance when you are younger is the fact that the healthier you are, the lower your cost will be.
Subsequent injuries and/or chronic conditions could prevent you from getting covered in the future.
If you are healthy today, then now is the best time to apply.
This is why we also recommend you eliminate bad habits like smoking or drugs before you apply.
4. 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 your 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.
By getting a contract today, you get peace of mind that your provisions will not change, no matter the changes in the market.
To read more about how COVID-19 has impacted the market, click here.
5. You’ll never be as young as you are now–getting disability insurance as a resident will keep your premiums low.
Your age can be one of the most important determining factors for your disability insurance cost because typically speaking the younger you are, the healthier you are.
Since disability insurance rates never change, you want to secure your policy as early in your career as possible.
As we mentioned above, disability insurance rates are based on your age, health, and income.
Not only may you get a lower rate because of your age, you may be less likely to have health conditions that could result in policy exclusions of coverage.
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.
Getting a policy while 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 that 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 with Pattern here!
If you are in search of financial help, please consider enlisting the service of any of the sponsors of this blog who I feel are part of the “good guys and gals of finance.”
Even a steadfast DIY’er can sometimes gain benefit from the occasional professional input.
NOTE: The website XRAYVSN contains affiliate links and thus receives compensation whenever a purchase through these links is made (at no further cost to you). As an Amazon Associate I earn from qualifying purchases. Although these proceeds help keep this site going they do not have any bearing on the reviews of any products I endorse which are from my own honest experiences. Thank you- XRAYVSN