Advice for new medical interns and residents regarding disability insurance

Here's some advice for all the new medical interns and residents who have recently started working in hospitals: Get disability insurance when you complete your residency.

Most young people don't think about disability insurance. If you're finishing residency or fellowship, you're probably not thinking about the possibility of facing a disability.

Build it into your budget. Set aside the funds to pay for disability insurance when you have the chance. I have met too many young physicians who developed disabilities and they did not have any type of disability insurance.

How many physicians have disability insurance?

The other day, I was speaking with a number of physicians about disability insurance. Someone happened to ask, "how many practicing physicians have disability insurance?" The group began discussing various benefit packages and they concluded that physicians who are employed by hospitals, academic centers, and other large organizations have access to nice disability insurance options. In contrast, many physicians who are in private practice or in small groups are not given many options for disability insurance.

It seems like so many physicians are not thinking about the possibility of needing disability insurance. Perhaps we don't want to think about our own fragility. Maybe we don't want to face the chance that we will get struck with illness or get involved in a serious accident. I've known many younger physicians who are now disabled and a number of them did not have any disability insurance because they were not informed during medical school about the need for disability insurance. .

Disability Income Insurance: What Every Physician Needs to Know

There's a great article titled, "Disability Income Insurance: What Every Physician Needs to Know." Here are some sobering statistics:

According to a recent Gallup study conducted for the UNUM corporation — although most people believe they have only a 16% chance of becoming disabled during their working years — the startling reality is that:

* If you’re under age 35, chances are one in three that you will be disabled for at least six months during the course of your career.
* Men have a 43% chance of becoming seriously disabled during their working years.2 Women have a 54% chance.
* At age 42, it is four times more likely that you will become seriously disabled than that you will die during your working years.

Click here to read the article by Reed Tinsley, CPA.

Disabled physician wins fight against Unum Life Insurance Company of America

Here are some interesting snippets from a legal case where a physician fought against Unum Life Insurance Company of America:

This matter is before the Court pursuant to post trial motions brought by both Plaintiff Albert David Matthew, M.D. and Defendant Unum Life Insurance Company of America. Plaintiff brings a Motion to Correct Special Verdict, Award Prejudgment Interest, and Enter Final Judgment and a Renewed Motion for Judgment as a Matter of Law or, in the Alternative, a New Trial Solely on the Total Disability Claim. Defendant brings a Motion for Judgment as a Matter of Law, a New Trial, and a Declaration of Mistrial.

Based upon the submissions of counsel, the Court having reviewed the contents of the file and evidence in this case, and the Court being otherwise duly advised in the premises, the Court hereby enters the following:

1. Plaintiff's Motion to Correct Special Verdict, Award Prejudgment Interest and Enter Final Judgment (Doc. No. [137]) is GRANTED as follows:

a. The Special Verdict is corrected to reflect the amount of $922,906 as the residual disability benefits awarded to Plaintiff;
b. Plaintiff is entitled to the return of premium benefits in the amount of $47,358.15 as stipulated to by the parties;
c. Plaintiff is awarded prejudgment interest in the amount of $498,340 on Plaintiff's residual disability claim; and
d. Plaintiff is awarded prejudgment interest on the return of premium benefits in the amount of $28,810.

You can read the rest here.

Things you need to know about disability insurance

This is a guest article by Donald Brown D.O.

Things you need to know about disability insurance

Your need for disability insurance is greater than your need for life insurance. Most people have no problem purchasing life insurance yet they hesitate to purchase disability insurance. Physicians like anyone else are not invincible. 43% of all people age 40 will experience a long-term disability event before age 65 (JHA Disability Fact Book, 2006)

Without a disability plan in place, will you be able to maintain your standard of living if you are not working? Can your family survive on one income when most families struggle with two people employed? How long before your savings are decimated?

Student loans are a concern for physicians who are just starting out. These loans are not discharged in the event of bankruptcy. Paying them off or expiring are two ways to eliminate them. You are responsible for them even if you are disabled. SallieMae.com states on their web site that loans may be "discharged" if you are disabled. They continue to state that even if you qualify for social security disability (extremely difficult to qualify for) you may not qualify for "discharge", and it will take a minimum of three years due to Federal Regulations, during which time you are still responsible for the debt.