Reasons a Medical Resident Should Have Disability Insurance

Fiscally, resident physicians and interns must find a way to bridge the gap between the debt of medical school and the income of a board certified physician. Residents are fully invested in their education financially, but are particularly vulnerable since they are not yet seeing a return relative to the size of that investment. With average salaries that pale in comparison to a physician’s median salary, resident physicians are treading water until their full income potential is realized.

Insuring the ability to earn that future income is crucial, especially considering the medical school debt that most medical residents are saddled with. An injury or illness to a medical resident could have debilitating long-term financial effects. A disability insurance policy protects future income and eliminates the risk of being unable to repay student loans.

According to the 1994 Statistical Abstract of the United States, in the course of a year, 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the value and protection offered by disability insurance is clear.

Disability insurance rates are based on age and health status, so it is advantageous to purchase a policy while you are younger and likely healthier. A policy purchased by a resident has the flexibility to meet the changing needs of the insured after residency and offers significant financial advantages.

Disability insurance is available through many avenues, but you might want to consider discussing it with a company that specializes in disability insurance for residents and physicians.

A disability could render you helpless by taking away the one thing that you need to safeguard all other assets: your income. Disability insurance protects the hard work and substantial investment of time and money that you have made in your career.