Life and Disability Insurance as Medical Student

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Oten302
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Life and Disability Insurance as Medical Student

Post by Oten302 »

I'm entering medical school and my school is requiring that I get Life and Disability Insurance. I wanted to know if anyone had any recommendations for a company and rates. For context, I am a 22 year old without health complications.
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climber2020
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Re: Life and Disability Insurance as Medical Student

Post by climber2020 »

Why? Assuming you have no dependents, you don't need either at this point. As a student, you have no income to protect so disability in particular makes no sense.

I'd get the most dirt cheap policies you can find if this truly is a requirement. They don't have to be any good. You can get better ones later on when it's actually important.
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Stinky
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Re: Life and Disability Insurance as Medical Student

Post by Stinky »

Does the school have any requirements for minimum coverages? And do they any suggested agents?
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ModifiedDuration
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Re: Life and Disability Insurance as Medical Student

Post by ModifiedDuration »

The White Coat Investor’s website might be helpful:

https://www.whitecoatinvestor.com/
MedSaver
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Re: Life and Disability Insurance as Medical Student

Post by MedSaver »

Seems strange. I’ve never heard of a med school requiring these types of insurance.
BruDude
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Re: Life and Disability Insurance as Medical Student

Post by BruDude »

I don’t think a first year med student can even get a disability policy. Are they offering you one? Never heard of a med school requiring students to buy their own.
esteen
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Re: Life and Disability Insurance as Medical Student

Post by esteen »

Is this a US medical school? This seems strange to me also. I have friends and family that recently went through several different med schools and none required this. Why would they care if you got life insurance - they would not be the beneficiary! And disability insurance makes even less sense since you don't get an income.

After med school once you're a resident, getting own occupation disability insurance is key before you graduate residency. The white coat investor (linked above) has a several part article on disability insurance I highly suggest you read, once you need it.
Doctor Rhythm
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Re: Life and Disability Insurance as Medical Student

Post by Doctor Rhythm »

Those are weird requirements (as opposed to the common requirement for health insurance). I definitely didn’t have them as a student, and if I had them as a resident, it’s only only because it was a free benefit. I’d make sure your information is correct before you go Google shopping for it. Only consider term life - not whole life.
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dodecahedron
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Re: Life and Disability Insurance as Medical Student

Post by dodecahedron »

esteen wrote: Tue May 11, 2021 1:42 am Is this a US medical school? This seems strange to me also. I have friends and family that recently went through several different med schools and none required this. Why would they care if you got life insurance - they would not be the beneficiary! And disability insurance makes even less sense since you don't get an income.
I was intrigued. Apparently it is possible for med students to buy disability insurance despite no current income. The AMA sponsors a plan (see link below.)

And the advantage of getting insurance while still a student is to guarantee access to continued coverage even if some health condition subsequently arises. Given the number of health care professionals (including med students on clinical rotations) exposed to infectious disease risk in the past year (and possible unknown long-term risks), this kind of preemptive purchase of insurance has acquired growing salience.

https://amainsure.com/insurance-product ... insurance/

As for why med schools should care: maybe the medical school is concerned about the impact on statistics for graduates who default on student loans due to death or disability? (Educational administrators get evaluated on all kinds of metrics by various bodies, including government regulators, accreditation organizations, magazine rankings, credit ratings agencies, etc.) The AMA (which is involved with the process for accrediting medical schools) also sponsors disability insurance (see link above.)

Edited to add: according to this article, "Last year, the Association of American Medical Colleges (AAMC) said that schools should require disability insurance for all medical students and provide access to policies." If all med students are required to get it, it can solve potential asymmetric information market failure issues (adverse selection) and hold down the price/improve access/reduce marketing costs for everyone.
Last edited by dodecahedron on Tue May 11, 2021 7:51 am, edited 1 time in total.
anil686
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Re: Life and Disability Insurance as Medical Student

Post by anil686 »

ModifiedDuration wrote: Mon May 10, 2021 7:31 pm The White Coat Investor’s website might be helpful:

https://www.whitecoatinvestor.com/
+ 1. BTW, some of the best disability insurance I have came from medical school and residency and I still have it. I did not know much about it at the time, but the policy was one of the best I have ever had the opportunity to buy (after reading WCI book and forum). I wish I would have known more about it in medical school - I would have bought more. Agree with the above poster - go to WCI, read his books and educate yourself on this topic - the best rates and policies are probably going to be available at the best prices for you now. JMO though...
BruDude
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Re: Life and Disability Insurance as Medical Student

Post by BruDude »

dodecahedron wrote: Tue May 11, 2021 7:37 am
esteen wrote: Tue May 11, 2021 1:42 am Is this a US medical school? This seems strange to me also. I have friends and family that recently went through several different med schools and none required this. Why would they care if you got life insurance - they would not be the beneficiary! And disability insurance makes even less sense since you don't get an income.
I was intrigued. Apparently it is possible for med students to buy disability insurance despite no current income. The AMA sponsors a plan (see link below.)

And the advantage of getting insurance while still a student is to guarantee access to continued coverage even if some health condition subsequently arises. Given the number of health care professionals (including med students on clinical rotations) exposed to infectious disease risk in the past year (and possible unknown long-term risks), this kind of preemptive purchase of insurance has acquired growing salience.

https://amainsure.com/insurance-product ... insurance/

As for why med schools should care: maybe the medical school is concerned about the impact on statistics for graduates who default on student loans due to death or disability? (Educational administrators get evaluated on all kinds of metrics by various bodies, including government regulators, accreditation organizations, magazine rankings, credit ratings agencies, etc.) The AMA (which is involved with the process for accrediting medical schools) also sponsors disability insurance (see link above.)

Edited to add: according to this article, "Last year, the Association of American Medical Colleges (AAMC) said that schools should require disability insurance for all medical students and provide access to policies." If all med students are required to get it, it can solve potential asymmetric information market failure issues (adverse selection) and hold down the price/improve access/reduce marketing costs for everyone.
A group policy would make sense but I don't think any of the major DI companies sell individual policies to first-year med students. I just had a second-year med student ask about it a month or so ago and every company told me they won't offer coverage as it's too early in their career. Still seems strange for this to be a requirement unless the school is offering its own policy.
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dodecahedron
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Re: Life and Disability Insurance as Medical Student

Post by dodecahedron »

BruDude wrote: Tue May 11, 2021 12:19 pm A group policy would make sense but I don't think any of the major DI companies sell individual policies to first-year med students. I just had a second-year med student ask about it a month or so ago and every company told me they won't offer coverage as it's too early in their career. Still seems strange for this to be a requirement unless the school is offering its own policy.
You (and s/he) should check out the link I posted above to the AMA-sponsored policies offered by NY Life:

https://amainsure.com/insurance-product ... insurance/

NY Life is certainly a major insurance company and according to their FAQ, starting this July 1, they will be offering guaranteed acceptance DI policies on an open enrollment basis to any med student under age 40 who is enrolled fulltime in an accredited medical school.
Dennisl
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Re: Life and Disability Insurance as Medical Student

Post by Dennisl »

Doesn't make a lot of sense, honestly. Never heard of that before.

For disability, you'll need specialty specific disability insurance. You're not going to know what you need until you match. Surgical is very different from medical. There are a few big disability companies, one is Guardian. I forget the names of the other ones. If they're forcing you to get life, get a cheap term life insurance.
MedSaver
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Re: Life and Disability Insurance as Medical Student

Post by MedSaver »

If your med school is requiring this because they have had an inordinate amount of death, disability and dismemberment, I would look at a different school.
BruDude
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Re: Life and Disability Insurance as Medical Student

Post by BruDude »

dodecahedron wrote: Tue May 11, 2021 12:58 pm
BruDude wrote: Tue May 11, 2021 12:19 pm A group policy would make sense but I don't think any of the major DI companies sell individual policies to first-year med students. I just had a second-year med student ask about it a month or so ago and every company told me they won't offer coverage as it's too early in their career. Still seems strange for this to be a requirement unless the school is offering its own policy.
You (and s/he) should check out the link I posted above to the AMA-sponsored policies offered by NY Life:

https://amainsure.com/insurance-product ... insurance/

NY Life is certainly a major insurance company and according to their FAQ, starting this July 1, they will be offering guaranteed acceptance DI policies on an open enrollment basis to any med student under age 40 who is enrolled fulltime in an accredited medical school.
Yeah, that is a group/association policy, not an individual policy. OP's statement that they require him to have his own insurance is a bit vague on what exactly is required.
esteen
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Re: Life and Disability Insurance as Medical Student

Post by esteen »

Dennisl wrote: Tue May 11, 2021 1:05 pm For disability, you'll need specialty specific disability insurance. You're not going to know what you need until you match. Surgical is very different from medical.
+1, this is why I would recommend waiting until residency (or at least the match as Dennisl suggests) to buy own occ DI.
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