Your education is your biggest financial asset, which makes disability insurance vital to your financial success. Protecting your income while still in training is a very important financial decision. So how does training affect your long term disability insurance policy or the process of getting a policy?
In this blog post, we are going to cover the most frequently asked questions about training, including:
Applying for disability insurance while in training
The cost of disability insurance while in training
Policy features to consider if you are in training
Applying for Disability Insurance While in Training
Training does not affect applying for a disability insurance policy.
However, it may affect the amount of coverage you end up purchasing. If you are currently in training the policy you apply for/purchase most likely be set to fit your income as of now. However, you are able to increase your benefit amount once you graduate and start making a higher salary.
This ensures that you are able to have income coverage now and that in the future it will continue to match your financial assets.
The Cost of Disability Insurance while in Training
Training is one of the best times to get a disability insurance policy simply because of the discounts. Discounts are huge, from a range of 10%-40% depending on your scenario. The discounts are something that carries over with you when you leave your training program, meaning the price that you lock in your rates for, will stay with you in the future.
One of the questions we get from clients is “If I get discounts now, I’m only in training for 6 more months.” but you get those discounts for life. They carry over not only the benefit that you have in your program but the benefit that you purchase and add on to your policy you have when you get to your attending position. So those discounts are huge.
Another reason why getting a policy during training is a smart decision is because you are young and healthy. Disability insurance is very sensitive to changes in your health, it gets more expensive as you get older.
So it is always a good idea to look into it when you are in training. Plus while you are getting the policy, if you are young enough and get the right policy you might be able to avoid getting labs done or having a physical.
Policy Features for Physicians in Training
When purchasing a disability insurance policy, it is always a good idea to look at features and benefits (which are basically add ons to your policy) that may help you in the future. If you are currently in training here are a few good options to add on to your policy.
Non-Cancelable Rider: A non-cancelable rider makes sure that the disability insurance companies can’t raise your premiums as long as you are paying them.
Guaranteed Renewable Rider: The guaranteed renewable rider prevents the disability insurance companies from changing your policy terms (like the benefit amount) or canceling the policy itself, as long as you continue with your payments.
Future Purchase Option Rider also known as Benefit Purchase/Benefit Update Rider: A future purchase option lets you keep the option to increase your benefit without having to worry about going through the process of getting a whole new policy.
Cost of Living Rider (COLA): The COLA rider will help to adjust the benefit amount to keep it updated with inflation.
Ensuring that you and your income are protected while in training is very important. If you are ready to get started with your policy, fill out a quote request here.
Otherwise, if you have any other questions, feel free to reach out, we are always here to help you!