WINSTON-SALEM, N.C.--(BUSINESS WIRE)--
It’s a near certainty that physicians will seek to protect their incomes after investing time and money into training in preparation for their designated career paths. Typically, upon completion of residency and/or fellowship a young Doctor will join a practice or hospital that will provide some level of group Long Term Disability Insurance. Usually, these plans will replace 60% of income up to maximum amounts of $10,000 or as high as $20,000/month. However, some of these benefits would be taxed if received during a disability claim and many group plans do not include specific language that provides the additional flexibility required for physicians.
To offset the lost income from the taxable group plan, it is strongly recommended by the financial planning community that the new physician purchase an individually owned Disability Insurance policy, referred to as Supplemental Disability Insurance. By paying the cost of this new policy with after tax dollars, the benefits would be tax free and this amount can supplement the group plan.
In the traditional marketplace, individual policies are priced far higher for females than males and this increased cost along with required medical review can often make securing the supplemental disability insurance difficult or frustrating.
Recently, several insurance carriers have created special guidelines designed for GME (Graduate Medical Education) programs throughout the country. Wake Forest Baptist Health in Winston Salem, NC has worked with Danny Mensh, President of Mensh Insurance, to offer its residents and fellows access to a Guaranteed Issue and unisex rate individual policy program since 2010 with tremendous voluntary participation. “Our ability to help a graduating resident or fellow secure policies with own occupation, fixed discounts and costs amidst major life changes is crucial. Our independent review of carriers with discounts and underwriting assistance helps these physicians permanently. We can even help them insure student loans which often drives the purchase of this protection.”
According to Ken Bloch, President of a disability wholesale agency, The Bloch Agency, founding partner of The Plus Group of North Carolina, “Our GME approach and partnership with Mensh Insurance allows us to customize our policy designs for each training program based on location and need and this is unique to the industry.”
Lastly, GME disability insurance typically will issue up to $7500/month upon graduation with as much as $17,000/month available during a physician’s career.
- Disability Insurance