Well, here are 3 reasons why you should consider purchasing an individual disability insurance policy now.
- Special Offers. As a resident, you’re likely to be offered all sorts of ‘deals’ on disability insurance – some of which might be really good. For instance, you could be offered a plan with limited or no underwriting. That means you can apply for the coverage without spending time completing a medical exam, providing blood or urine, or answering a long list of health questions on the application. It also means your policy isn’t lilkely to be ‘rated’ with higher premiums or have ‘exclusions’, where the insurance company won’t pay benefits if the health issues in question caused the disability.
- Lock in Rates1. As a 28 year old cardiology resident, an individual disability policy with a $5,000 monthly benefit might have an annual premium of $1,420. But wait another 4 years and your premium at age 32 increases to $1,700. That’s an additional $280 in premium every year! It pays to lock in rates now. The younger and healthier you are – the better the rates.
- Portability. You might already be covered by a group disability plan as part of your benefit package from the teaching hospital. But when you finish residency and move into practice, your group coverage will likely end. That could create a gap in coverage, meaning there might be a time where you have no coverage at all. If you purchase an individual plan during residency, the plan will stay with you – even when you change employers.
1Rates provided by Ohio National Life Insurance Company; Male, Age 32 & 28, Nonsmoker, Occupation Class: 6M