The Hidden "Costs" of Buying Disability Insurance Through Online Brokers
One of the greatest barriers residents face when trying to obtain long term disability insurance is the need to satisfy an insurance company's medical underwriting requirements. Under normal circumstances insurance carriers have the right to have an applicant complete an extensive medical questionnaire, provide all medical records and the insurance company has the right to deny or limit a request for coverage because of any current or pre-existing medical condition.
Recognizing how your medical history (or actions you’ve taken to address the stresses associated with your training) could threaten your ability to protect your financial well-being, many teaching hospitals have secured a "guaranteed issue" insurance program for its residents and fellows. Through this type of offering all residents and fellow are eligible to obtain portable income protection without having to satisfy the majority of an insurance company’s medical underwriting requirements.
It’s important to be aware that residents and fellows are only able to secure these “guaranteed issue” policies by working with representatives of the insurance organization selected by your teaching hospital to introduce and support this offering. An online broker or quote engine will not be able to offer this guaranteed issue coverage ( unless it has established an agreement with the insurance organization that administers this plan) and may not choose to communicate your opportunity to secure coverage through your teaching hospital’s benefit package.
The greatest concern about not being notified of “guaranteed issue” opportunities offered by your teaching hospital is that they are not available to any resident or fellow who has applied for coverage on the open market and was denied due to a medical underwriting decision. Any resident or fellow who is currently taking medications for a chronic condition, seeking help for stress related issues, has a history of muscular skeletal issues or suffering from post-Covid symptoms should be sure to check with their teaching hospital if they have access to guaranteed issue coverage before risking their ability to protect their financial well-being by applying online.
We believe that using on line resources can help consumers make educated decisions and should be included in the process of evaluating coverage options. However, its important to make sure you are aware of all of your options and don’t forfeit what could be a once in a lifetime opportunity to protect your current and future income.