5 things new doctors need to know about individual disability insurance

What do you want to know

  • New doctors may have huge student loan bills to pay.
  • Some may need help coping with stress.
  • They may be very aware of the need for benefits.

Over the next few months, a new class of medical students will graduate and enter their residency or fellowship programs.

As they prepare for the start of their career, many establish a relationship with a financial advisor to protect the investment of time and money they have made in their education that should eventually reward them with long and lucrative careers. .

One way to help your resident physician clients solidify their financial plan is to provide income protection through individual disability insurance.

The IDI can help residents and fellows protect their financial future, even if they cannot work due to an unexpected disability.

The IDI pays monthly benefits if a policy owner is unable to work for an extended period due to injury or illness.

The IDI is essential for physicians. They have larger incomes and more expenses to protect.

Most pay off large amounts of student debt.

In fact, the Education Data Initiative reported in July 2021 that today’s medical school graduates have an average of $215,900 in student loan debt. And specialists, like surgeons, could be at even greater risk of losing income if they can’t practice their specialty.

It is important that physicians’ incomes be protected from the outset, while they are in residency or completing rotations.

Even though many residents and fellows have strict budgets during their training, there are policies available that offer solid coverage at an amount and cost that matches their financial situation.

Often these policies can also evolve with them as they progress in their careers.

If you have clients in medical residencies or fellowships, look for five key policy features.

1. A professional definition of disability

The definition of total disability is the cornerstone of any IDI policy.

Most policies come with a regular occupation definition.

This means that insured persons could receive full monthly benefits if, due to injury or illness, they are unable to perform the main duties of their regular job.

Some policies, however, allow for an upgrade to a clean profession definition.

With their own profession, highly specialized doctors may be able to collect total disability benefits if they are unable to perform the duties of their usual profession, but choose to work in another job.

Without the option of their own profession, they may have to choose between collecting disability benefits or working.

2. Student Loan Repayment Coverage

Most resident physicians have significant student loan debt.

If an unexpected injury or illness occurs, your clients may worry about how they will continue to repay their student loan if they experience a drop in income.

With a student loan endorsement, they can add protection to make sure they can make their payments even if they can’t work because of their disability.

3. Mental Health and Addiction Coverage

Many policies will not pay the monthly benefit for the entire benefit period if the cause of the disability is related to a mental health disorder or addiction.

Moreover, these benefits are often limited to one or two years.

About Antoine L. Cassell

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