Posted by Amy Carbone on Aug 1, 2024 12:09:13 PM
One of the necessary steps in applying to purchase disability income insurance is medical underwriting. What is medical underwriting? It’s the insurance company’s review of your health. Underwriting allows the insurance company to review each applicant, assess their health history, and determine an offer based on their risk factors.
Medical Underwriting: Why You Should Start Now
1. Age and Health Drive the Cost of Disability Income Insurance
We recommend taking the steps to secure your insurance as soon as possible.
Given that both age and health impact pricing, it’s best to go through medical underwriting as soon as possible.
Buying disability income insurance (DI) early on in your career gives you the opportunity to secure insurance at a younger age and while you are (theoretically) in better health. You may be thinking, this is yet another expense to take on, especially if you have not yet graduated, or if you have recently graduated.
Finances may very well be tight early on in your career timeline. But if you compare a 28-year-old purchasing disability income insurance versus a 38-year-old buying the same policy, there's a substantial difference in cost. The long-term cumulative savings that come from purchasing insurance early are significant compared to buying insurance when you are farther along in your career path.
2. Insurance Costs Less If You Lock In Your Rate
By going through medical underwriting now, you will be able to get your ‘foot in the door’ and secure the insurance at a lower rate. Keep in mind, you don’t have to insure a high income. The important thing is to get the insurance; you can always adjust how much coverage you buy as your income increases. That’s one way to keep your out-of-pocket costs low while you get financially established.
3. Gain Peace of Mind
Once you secure a policy, you have peace of mind that you’re covered in the case of an injury or illness. Don’t assume that degenerative conditions only affect older people. Anyone can get sick, and anyone can be injured at any age.
But if you get your DI insurance while you are young and healthy, and even a year later a health condition results in you filing a claim – you are protected. Once you have a policy, you eliminate many of the ‘what ifs’ in life.
What if your health changes? What if you need to use your policy and didn’t buy one? We've seen many young doctors still in training experience health conditions or injuries, and when they have a policy in place, they are obviously in a much better position than they would be if they had delayed.
4. Start the Medical Underwriting Process Early for a Student Discount
If you’re still in school, or a (very) recent grad, make sure to take advantage of student discounts for disability income insurance. Most companies offer it, and it’s highly advisable to buy disability income insurance when you are still in school. If you are putting it off because you don’t have time, remember that life is not going to get any less busy after graduation.
You will have many more decisions to make as you enter the working world, so this really is the best time to buy. What if you forget to lock in the discount? I don’t know about you, but I really like to save money. You don't want to pay too much for insurance. If there's a training discount available to you, grab it while you can.
4b. Additional Discounts
Once you’re an established doctor, or if you are looking to purchase a practice, you may have several insurance needs in addition to disability income insurance. Most insurance companies offer discounts when customers buy several products at once. That’s worth keeping in mind, too, as you explore DI.
5. Protect Your Career With Your First Business Decision
Buying disability income insurance is one of the first business decisions you will make early on in your career. Research it, make the decision, and then review your limits each year. Insurance in general is something you don't simply buy and set aside. You want to review your policies annually as you progress through your career. A financial advisor should be able to guide you, especially one who has experience working with dental and medical professionals.
Learn How To Complete Medical Underwriting and Obtain Tailored Disability Income Insurance
The sooner you complete the medical underwriting process, the sooner you can help protect your future with a tailored disability income insurance policy.
However, you don’t have to navigate the world of disability income insurance alone. At Treloar & Heisel, we believe in supporting dental and medical professionals like you with resources and support so you can safeguard your budding career.
To learn more about how you can tailor your disability income insurance policy, review The Dental Student’s Guide to Applying for Disability Income Insurance and schedule a complimentary consultation today.
About Treloar & Heisel
Treloar & Heisel, an EPIC Company, is a financial services provider to dental and medical professionals across the country. Our insurance and wealth management divisions assist thousands of clients from residency through retirement. We strive to deliver the highest level of service with custom-tailored advice and a strong national network.
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