Cost of Gender Specific Rates for Male Residents

Securing a comprehensive disability income insurance policy is one of the most important steps you can take towards financial independence as it protects the future earnings potential you have as a specialist. While most physicians we work with know this, we find many are not, however, aware of the risks and costs associated with waiting until after your training is complete to secure a disability income protection policy.

In this example, Physician A waits until the completion of his training to secure coverage at age 35. As you can see, he still pays nearly $16,000 more throughout the life of his career than Physician B, who secures his coverage 5 years earlier, the opportunity cost of which amounts to over $36,000 when savings are periodically invested at a 7% return2. This is due to the fact that Physician B took advantage of the discounts available to him as a resident, as well as future increase options which allowed him to increase coverage, discounts included, once he became an attending physician without the need for additional medical underwriting.

What this example does not illustrate, are the risks Physician A faces by waiting. These include the risk of health degradation and policy exclusions, the risk of disability during training, and the risk of reduced benefit limits.

As the old saying goes, “its better to have it and not need it, than to need it and not have it.” By securing an affordable disability income protection policy during training, you not only lock in your future insurability, but you also protect yourself and your income while you are still in training, for less of a cost than what you’d pay for the same coverage years later. Request a quote today to take a step towards securing your future.

1 First 5 years of Physician B’s policy use graded premium, converted to level at age 35.

2 Break even occurs at age 43, opportunity cost shows annual periodic investment of $727.27 ($16,000/22) compounded over 22 years.