Disability Insurance - Resident Physician

[Rads4lyfe]

Hi everyone,

I'm finishing up my residency and was looking to buy disability insurance before I'm done training. I was quoted for Guardian for 5k/mo with future increase rider +15k, COLA, and partial/residual disability, benefit period 90 days, own specialty(radiology). The cost is ~190$/mo or about $2,280/yr for leveled premium.

I don't have any experience with this, and 190$/mo seems kind of high. I wanted to make sure that I'm not getting ripped off.

What are your thoughts on this policy?

Thank you.

[avenger]

Seems about right.
I’ve been out in practice about 9 years, and am paying ~$400/month for about $10k benefit, with all of your specifications for about $10k of benefit. My product is through the Standard.

[SpaghettiMonster]

You could extend the benefit period out to 180 days or even more. Once you're earning an attending paycheck, you should be able to have enough available to cover an additional 90 days of living expenses before DI starts paying out. It would save on the premiums.

You should also get quotes from the other big own-occupation DI carriers. While Guardian may rate radiologist as a specific occupation class, another carrier may rate as a different class and therefore offer different rates.

[climber2020]

That sounds about right. My own-occ policy provides a 7500 monthly benefit with all the riders you listed, and I pay a little under $300 a month.

[BruDude]

Premium sounds about right assuming you're a male. 90 days is the elimination period, not the benefit period. Check your quote and see what it says for benefit period - you want a minimum of to-age-65. Changing the elimination period to 180 days will reduce the cost. You can also look at doing the graded premium if you want to keep the premiums lower while in residency/fellowship, then change to level premiums when you start practice and are earning more money. There should be a comparison of the two options in the quote. If there isn't, ask the agent to run another quote that includes the comparison.

Guardian has the best DI policy you can get and is a great choice.