Disability insurance

[Anonymous]

I got some quotes for disability insurance - $350 monthly so that I could be paid off the bat if something were to happen vs $300 monthly to be paid after my employer disability runs out. I'm young and healthy, but I also don't think my part time employer disability will be all that good. Is it worth it to go ahead and pay that $300 per month?

Also, my disability excludes anxiety and insomnia for some crappy diagnoses (that don't even pertain to me) that my PCP just happen to throw into my chart. I'm annoyed. I could fight this or pay even more to get it disregarded. Any thoughts?

[Anonymous]

FYI, your disability policy will not pay out more than 60% of your income.

[Anonymous]

$300 a month sounds high. I pay about a third of that. Whether it is worth it depends on a range of factors. You are young and healthy, but you could still be in an accident and you are more likely to become disabled than die. It is a good idea to have the coverage, but you have to look at all your numbers and circumstances to make an informed decision. What is the maximum benefit period? What are your other sources of income if you can't work? Etc.

[Anonymous]

Is this short term or long term?

You work PT, and you have disability benefits through your employer, right?

You are looking at spending $3600 per year to guarantee 2/3 (give or take) of your income.

What do you make in a year? Are you supporting yourself on this income?

[Anonymous]

Thanks all, this is long term disability. I am finishing up residency, so not making much now, but plan to (in total) make about 250-300K starting in a few months. My husband will make about a third of what I make.

[Anonymous]

Will you get disability insurance in your new job or is this a long term policy that you will carry?

[Anonymous]

Anonymous wrote:Will you get disability insurance in your new job or is this a long term policy that you will carry?

I will, but I'll be there only 60% of the time, so it will be a reduced rate.

[Anonymous]

You can get this disability to cover your residency salary, then update the policy to cover your new salary. Or if the group you work for offers disability, you can also take that and cancel the existing one you sign.

[Anonymous]

are you planning to do a fellowship? It doesn't sound like you are. You will be finishing up in 2 months time. have you been made an offer at the new job? if so, go and review the benefits available there in your offer package to see what they cover in terms of disability.

[Anonymous]

I would think it is better to get disability insurance independently from your employer. Thinking of a situation where an illness might make you change jobs to a less demanding once but you subsequently find you can’t continue in the new job. If your disability insurance is tied to your original employer you might be out of luck. Something to consider.

[Anonymous]

Thanks all. I am completing a fellowship and I have signed on with an employer, I just think it is wise to get independent disability insurance. But some options include having the independent disability kick in after the employer disability runs out (which is a little bit cheaper). So I was debating that. But I think my employer disability will likely not be very high, so I think I'll bite the bullet and just get regular disability. Thanks for all of your feedback!

[Anonymous]

The key thing with disability for doctors is it has to be “own occupation” or else it won’t really pay out, they will just tell you to do something else within medicine. Like if you’re a surgeon and hurt your hand they will insist you practice primary care. Mine is Guardian own occ and it costs $450/month. Was less during fellowship. It’s best to get before you have any medical issues with a clause that says you don’t have to get re-examined for future increases in coverage.

[Anonymous]

Anonymous wrote:The key thing with disability for doctors is it has to be “own occupation” or else it won’t really pay out, they will just tell you to do something else within medicine. Like if you’re a surgeon and hurt your hand they will insist you practice primary care. Mine is Guardian own occ and it costs $450/month. Was less during fellowship. It’s best to get before you have any medical issues with a clause that says you don’t have to get re-examined for future increases in coverage.

I hope OP came back and read this. Good information PP

[Anonymous]

Anonymous wrote:I got some quotes for disability insurance - $350 monthly so that I could be paid off the bat if something were to happen vs $300 monthly to be paid after my employer disability runs out. I'm young and healthy, but I also don't think my part time employer disability will be all that good. Is it worth it to go ahead and pay that $300 per month?

Also, my disability excludes anxiety and insomnia for some crappy diagnoses (that don't even pertain to me) that my PCP just happen to throw into my chart. I'm annoyed. I could fight this or pay even more to get it disregarded. Any thoughts?

First, you can purchase policies with various elimination periods, which is the length of time before they start paying. Generally people choose a length that matches their employer's short term disability policy. The longer the elimination period, the lower the premium. However, I don't sign up for my employer's STD, and I would think that most professionals would be able to have a few months emergency savings, so I go with a longer elimination period.

Second, posters saying $300 is high are wrong. Depending on the benefit amount, if you are a male, that premium is about right for the best health rating. Females' premiums are more expensive. People are likely thinking of employer policies which are cheaper and have benefits that go along with the cheap price.

Look for a policy with good mental health benefits such as Guardian. Many people think that won't apply to them. I know a lawyer who got attacked in court by a defendant and had PTSD and could not go back to work for several years.

[Anonymous]

First, you should take this policy because you need insurbace. Then go around and shop for better insurance, but at least you are covered in the interim.

Second, get separate short and long term disability policies. Don’t combine them. Over time your savings will build up such that you can drop the short term disability altogether.

Third, payments under the disability policy is NOt subject to tax if paid for with after tax dollars. So while it is only 60% of pay, if paid with after tax dollars it works out to something like 85-90+% of take home.