How Medical Schools Help Their Graduates Bridge the Financial Wellness Gap During Training

As graduating medical students begin their residency programs, they can expect to receive a constant stream of emails from insurance agents and online proposal websites about the importance of purchasing personal disability insurance coverage to fill in the protection gaps found in the disability insurance provided by their teaching hospital.

While purchasing additional coverage during training can help residents meet their financial obligations if they are unable to continue their training due the event of an accident or illness and guarantee the right to obtain additional protection during practice years, most residents will have a hard enough time making ends meet without having to spend as much as $1,000/year on the type of policy promoted by many insurance agents and online proposal websites.

It’s for this reason that a significant number of US medical schools have secured for their graduating students the opportunity to obtain coverage that has been specially designed to address this important issue while fitting into the budgetary challenges faced by most residents.

These policies are available to graduating medical students up to 30 days after graduation, will insure all current or pre-existing medical conditions and can provide thousands of extra dollars each month, reimburse up to $200,000 of student loan obligations and guarantee the right to obtain up $48,000 of tax-free income during practice years through a policy that includes a long term “own specialty” definition of total disability.

Graduates who choose to secure this specially designed coverage, can dramatically improve their protection without having to figure out how to find the money that may exceed their budgetary constraints.

This policy can also be an important means to protect future income if an accident or illness were to occur and create a pre-existing condition that would allow an insurance company to disqualify an application for coverage .

Regardless of your current health status, taking steps to make sure an accident or illness does not disrupt your ability to cover your financial obligations nor your ability to insure your future earnings is an important step in any financial wellness plan. And the coverage selected by many schools for its graduates has made protecting their futures that much more attainable.

Sign Up for Our Newsletter

How Medical Schools Help Their Graduates Bridge the Financial Wellness Gap During Training

Want to tell a friend?

Did you know?

The premiums paid by a practice owner for a policy that insures their ongoing business expenses is 100% tax deductible

Individual policies can be used to raise the income placement percentage and maximum monthly benefit for employed physicians and executives

Graduating physician who are entering practice can obtain coverage that’s greater than their actual earnings

Business overhead expense policies can cover hiring a locum tenens

Group long term disability policies can be obtained by practices with fewer than 10 full time employees

Contributions cannot be made into a qualified retirement account in the event of a disability

Most employer provided long term disability coverage will require you to be out for as long as six consecutive months in order to qualify for benefits

Residents and fellows can insure 100% or more of their incomes during training

Medical underwriting can be waived when a practice purchases individual policies as part of its benefit package

Some policies that insure student loan obligations require the insured to be out completely and not be expected to return to work ………ever.

If your employer provides you with long term disability coverage for free, any benefit amount provided during a claim will be taxed.

Voluntary offerings to large healthcare populations can be offered without medical underwriting and permanently discounted rates.

Residents and fellows can forfeit their right to a teaching hospital’s “guaranteed issue” coverage if they apply elsewhere and are denied due to medical conditions

Group insurance policies usually only protect base salary

Rates and provisions of individual policies are guaranteed not to change until the age of 65. The same isn’t true for group or association coverage.

Taking medication or seeking counseling to manage stress can affect your ability to secure coverage

The “guaranteed right” to increase the benefit amount of an individual policy will be reduced as you age.

Already a Policyholder?

Want to Stay Informed?

Looking for a Quote?