4 minute read
Have you considered purchasing disability insurance? If not, it might be time to start. Disability insurance protects your assets from a loss of income in the event that you are unable to work due to an illness or injury. It can also protect against other financial losses like medical expenses and funeral costs. For many residents, this coverage is essential during training when they have little or no salary and maybe living with their parents for free rent. Buying disability insurance before leaving training will help reduce stress by knowing that your income is protected in the event of an unexpected accident or illness during your career!
We often think that if a product has a certain label that it meets our needs. Sometimes this is true and you're fine, but in the times you're not right it could be a costly assumption.
This is the case with physician disability insurance, especially when blindly accepting the coverage your employer may offer. What might work as a supplement should never be considered sufficient to cover your disability insurance needs.
Not all Benefits are Really Beneficial
If you start a new job and find that the benefits package includes physician disability insurance, be sure to save up for it because your employer might not offer any. The payouts from this type of plan are generally taxable income so make sure to set some money aside each month or year as soon as possible in order to avoid penalties on top of losing out on cash flow created by earnings.
You may be able to save on taxes by paying for your own coverage (and saving up in the meantime) or switching jobs. Getting employer-sponsored insurance is hard, as it typically only carries over if there's a continued employment relationship with that company and you're unable to switch between them without losing some of your benefits.
Now imagine the situation that you could find yourself in if you were relying on this coverage and instead of going to a company with better benefits, went to an employer who doesn't offer any. If your health changed for some reason making it no longer insurable, would there be enough money coming from other sources?
What happens when we put all our eggs into one basket only to realize later that another option was available but not pursued?
Control What You Can Control
The dilemma that this creates is a lack of control over the situation. Ultimately, employers are going to do what is in their best interest and you should arguably do the same.
By purchasing your own physician disability coverage, you not only get to choose the plan that best fits your needs and budget but also peace of mind. If you become disabled while working as a doctor even if it says on paper that this occupation is covered under other plans; true "own-occupation" will protect you in any situation where they are no longer able to work their profession or another one for some reason.
The problem with most employer-sponsored plans is that they do not offer real own-occupation coverage which could leave you without the benefit you're expecting.
Physician Disability Insurance Can Be Affordable…If You Time It Right
You may think it's too much work to get a policy on top of what your company offers or you simply feel more comfortable sticking with what they offer. However, there are so many advantages when going for an individual plan other than one sponsored through their place of employment such as better coverages available off-the-job injuries and illnesses, in addition, to ease during filing claims online without having someone else see them which is important if confidentiality matters most.
However, if you're a resident or fellow you can take advantage of training program discounts that can make the premiums affordable and give you the peace of mind that you control what type of coverage you have.
The discounts offered by these training programs are not like the usual discount you get from a sale. They're better because they will never expire and can be taken with you to any employer in case this one doesn't work out, so it's worth looking into for anyone who is about to enter their first attending position or if anything changes at your current place of employment.
If you are a resident or fellow and need assistance procuring your physician disability insurance then contact us today and one of our experienced physician-only advisors can direct you to the plan that would best fit your needs.
For help with your disability insurance options, Click Here for Free Quotes from multiple insurance companies.