Medical residents/fellows work long hours, and their job can be physically demanding. As a resident, so much time is spent dedicated to learning and gaining experience to reach the goal of becoming a successful medical professional. Long hours, student loans, studying etc., can make life so busy that many forget to look at important financial strategies, like protecting the ability to earn an income with disability income insurance.
There are many legitimate reasons to delay reviewing your disability income contingency plan, but at some point, the cost of not addressing this issue can be greater than the ultimate cost of not addressing it (i.e. paying premiums). According to statistics, 25% of today’s 20-year-olds will experience a long-term disability before they retire1. Many people think most disabilities are caused by accidents but that is a myth. Back issues, cancer, heart disease and other illnesses are the leading cause of most long-term absences. Your greatest asset is your ability to earn a living.
Here are 5 great reasons why disability income insurance is a necessary tool.
1. It helps PROTECT your Income and your assets: If you become disabled, the immediate impact is a loss of income. This creates a domino effect on everything else in your life. Expenses start piling up. You start pulling money from saving, checking, investments, retirement, etc. A plan to cover a portion of your income will help you cover expenses until you get better and get back to your daily activities.
2. Affordability is key: Discounted premiums through existing multi-life programs, help residents/fellows obtain the protection they need at an affordable price. In addition, age and health are key factors in the cost of a policy. The younger and healthier you are the lower the impact on your budget.
3. A Benefit that grows with Residents/Fellows (Without a medical exam!): Designed properly, a disability income insurance policy will grow with your career. As income and living expenses grow, so does the need for protection.
4. Riders2 are important: Many riders are accessible, but only at the time of applying for coverage. Riders, attached to your policy, can help protect your ability to save for retirement, provide inflation protection, cover student loans, provide additional benefits for a catastrophic illness/injury, and allow you to increase your coverage as your income grows.
5. Protect your specialty: (Own vs. Any Occupation) The definition of disability could be one of the most important design features of any disability income insurance policy. Doctors have a specific skill set that is unique to being a doctor. You should be protected the same way. Having an “own occupation” definition of disability on a policy means if you unable to perform your duties as a doctor due to sickness or injury, you are considered disabled. An “Any occupation” definition of disability generally means that after 2 years, a company may discontinue paying benefits if you are able to perform a different (any) occupation for which you’re suited by education, training, or experience. It is critical to make sure your policy reflects your specialty. Own Occupation coverage that protects you in your medical specialty is available as an optional rider2.
2 Optional riders are available at an additional cost.
Financial Services Representative
Phone: (929) 374-6678
MassMutual Metro New York
One Penn Plaza
NY, NY 10119
Disability income insurance policies issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. Policies have
exclusions and limitations. Local firms are sales offices of Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA
01111-0001 and are not subsidiaries of MassMutual or its affiliated companies. CRN202504-2204467