Medical Student Disability Insurance

Nowadays, disability insurance has become a necessity rather than a redundant item in the financial portfolio. It’s becoming popular, especially among physicians due to its many benefits both for short-term and long-term benefits.

Year-in and year-out, graduating medical students are left with huge debts to pay. According to NerdWallet, the average medical student graduated with a total of $196,520 in student loans in 2017. It is expected that such debts be paid with career income as a medical professional. However, this could become impossible if your career is interrupted by a disability.

Considering this trend, the Association of American Medical Colleges (AAMC) mandated that all medical colleges make a disability insurance policy available for their medical students. The aim is to help medical students cover their living expenses, loan repayment, and so on in the event of a disability.

Medical Student Disability Insurance
Why Do Medical Students Need Disability Insurance

Why Do Medical Students Need Disability Insurance

Where do you see yourself in the next five, ten, or twenty years? You might be done with medical school and have now begun practicing as a resident physician. You may even be attending to patients in your practice. Perhaps you plan to buy a house, raise a family of your own, or even support parents or siblings financially.

Many people who strive for this or a similar goal fail to factor in the possibility of a disability. Your dream is only achievable if you are able to continue working, and this ability becomes your most valued asset.

So what happens if a disability does not permit you to continue working?

Being a medical student, you know that life can be unpredictable. You simply can never know if and when disability will strike. Adequate planning will provide you with the needed protection from the state of financial incapability even when you can no longer work.

Disability insurance will provide a steady income that can help pay off student your loans and any other debts. Additionally, your benefit will provide cash in hand to live the kind of life you want for yourself and your family.

What Kind of Disability Insurance Policies are Available to Medical Students

Group vs Individual

Medical students can often benefit from group disability insurance. However, these plans are also often limited in the coverage they offer. In most cases, group plans do not extend past residency program. Also, group plans can be terminated or changed when you least expect. Such plans would likely not sufficiently provide coverage in the event of future disability. That being said, many have found group coverage useful by using it to supplement individual policy.

Therefore, if you’re looking to eliminate student debt through disability insurance, then purchasing an individual policy is the best solution.

Short-Term vs Long Term

In general, insurance policies for medical students are short-term and long-term disability insurance.

Short-term coverage provides benefits for up to two years. It pays your income if you’re disabled and cannot perform your medical duties. Depending on your premium rate, your benefits may be between 40% and 60% of your income.

Long-term disability insurance pays benefits for two to ten years. Some policies can even run until the retirement age of 65. Payouts after the occurrence of disability are usually between three to six months.

What Should Medical Students Look for When Buying Disability Insurance Policy

Understand the Policy Language

Insurance terms may sound unfamiliar to you as a medical student. Understanding the definition of these terms will help you make the right choice. Look out for the following policy riders:

  • Non-cancelable and guaranteed renewable: With this policy, your provider cannot cancel, modify, or change your premiums or underwriting.
  • Residual or partial: Some policies will only issue payouts if you sustain a long-term injury. Residual or partial coverage guarantee benefits in the event of partial disability.
  • Own-occupation: This policy ensures that you get paid if you’re unable to work in your field of specialty as at the time of underwriting but can work in another specialty.
  • Convertible: You can decide to adjust or switch from short term to long term policy without disclosing medical history.
Buy What You Will Need

While still in medical school, you have to be prudent with spending your budget. So, think carefully about how much coverage will be enough for you and think of the fixed premium cost. You may need to consult with an insurance advisor to help you with the calculation.

Consider the Integrity of the Insurance Company

Your medical underwriting is only as good as the company you purchase your policy from. A reputable company will ensure that you get paid without delay or depriving you of your benefits. Take the time to find out what people are saying about a company before buying from them.

Buy Now That You Are in Medical School

Buying a policy at the eleventh hour puts you at high risk. Many think that disability insurance is better purchased after medical school or residency when they’ve begun working. But this could lead to more problems down the line.

Disability coverage requires medical underwriting that includes your detailed medical history. If you buy now that you are young and healthy, you won’t have to undergo additional underwriting in the future if you decide to increase your coverage.

Even if your health changes, you’re protected, your premium is fixed, and you may also be eligible for future discounts depending on the insurance company.

Resident Physician Disability Insurance

How Gold Coast Life Insurance Can Help

Are you a medical student looking to get disability insurance coverage? At Gold Coast Life Insurance, we will not only provide you with a flexible and affordable policy, but we will also take the time to put you through every detail of your policy.

We admit all sort of applicants without discrimination. We accept both high-risk applicants and those with pre-existing conditions without the need for medical examinations.

To get started, get a free quote from us today to protect your most valued income asset.

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