Disability Insurance key points?

[apr27]

I'm my first year as an attending. Little bit older and in California. HTN, prediabetes, and some high cholesterol on my chart. Residency....am I right? I'm late to the game, I know. I got some quotes from guardian. They seem to give me two options for each option if that makes sense. Perhaps the people with Guardian can weigh in.

5k = $250-$420/mo
7.5k = $275-$490/mo
7.5k = $320-$570 /mo

My questions:

1) Can I get better rates somewhere else?
2) What are buzz words, riders, or items I should be looking for or be worried about?

Thanks!

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[ucladoc2b]

You can try. Go through an agent and they can find you all of them. Also you can look for things like 180 day elimination periods vs 90 days.

 

[abolt18]

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Personally, got mine through Larry Keller and he was excellent. Several friends have gone through him as well.

 

[JiPo]

I’ve also gotten it through Larry and he is very helpful. Ended up getting it from Standard. I had minor pre-existing conditions and my rates are similar to what you got from Guardian.

Why the range though? Does it depend on your rider? I have COLA and own occupation rider, and it is close to the lower end of your quotes

 

[abolt18]

I’ve also gotten it through Larry and he is very helpful. Ended up getting it from Standard. I had minor pre-existing conditions and my rates are similar to what you got from Guardian.

Why the range though? Does it depend on your rider? I have COLA and own occupation rider, and it is close to the lower end of your quotes

I'd suspect it's a graded (starts small and increases with time) vs level premium (fixed amount until 65ish). Graded is nice if you expect to be FI and not need insurance within whatever timeframe it takes to even out (usually 15-20 years, depending on the policy). Not to mention the time value of money, spending less now and more later is nice when you consider inflation.

I got level premium and went with Principal, as theirs were the best rates for me. Graded wasn't offered to me at the time.

 

[linkin06]

Make sure it’s a reputable brand and get the own occupation rider for sure. I would do COLA too in case we have crazy inflation. I forgot to add but future purchase option can be good too.

 

[Dantrolene FC]

Make sure it’s a reputable brand and get the own occupation rider for sure. I would do COLA too in case we have crazy inflation. I forgot to add but future purchase option can be good too.

COLA won’t necessarily protect against hyperinflation given they usually max the COLA to 3% per year. You can get as high as 6% from what I’ve seen.

 

[BLADEMDA]

1. Occupation Specific
2. 90 days for payment after becoming disabled (6 months may be too long)
3. COLA
4. Steady or same payment until age 65
5. Purchase only the amount you need like $7500-$10k per month (tax free)

 

[linkin06]

1. Occupation Specific
2. 90 days for payment after becoming disabled (6 months may be too long)
3. COLA
4. Steady or same payment until age 65
5. Purchase only the amount you need like $7500-$10k per month (tax free)

definitely make sure you're paying post tax dollar. if its not employer related it should be

 

[apr27]

I’ve also gotten it through Larry and he is very helpful. Ended up getting it from Standard. I had minor pre-existing conditions and my rates are similar to what you got from Guardian.

Why the range though? Does it depend on your rider? I have COLA and own occupation rider, and it is close to the lower end of your quotes

It's actually not a range.

The cheaper number is the graded and the other is the level. Any thoughts on that if you're familiar?

 

[apr27]

Make sure it’s a reputable brand and get the own occupation rider for sure. I would do COLA too in case we have crazy inflation. I forgot to add but future purchase option can be good too.

Guardian

 

[apr27]

I'd suspect it's a graded (starts small and increases with time) vs level premium (fixed amount until 65ish). Graded is nice if you expect to be FI and not need insurance within whatever timeframe it takes to even out (usually 15-20 years, depending on the policy). Not to mention the time value of money, spending less now and more later is nice when you consider inflation.

I got level premium and went with Principal, as theirs were the best rates for me. Graded wasn't offered to me at the time.

This is correct. I'm actually considering the graded assuming I will be FI via my personal investments or via marrying a high earner (lol). You think that might be a better move?

 

[MirrorTodd]

I'm my first year as an attending. Little bit older and in California. HTN, prediabetes, and some high cholesterol on my chart. Residency....am I right? I'm late to the game, I know. I got some quotes from guardian. They seem to give me two options for each option if that makes sense. Perhaps the people with Guardian can weigh in.

5k = $250-$420/mo
7.5k = $275-$490/mo
7.5k = $320-$570 /mo

My questions:

1) Can I get better rates somewhere else?
2) What are buzz words, riders, or items I should be looking for or be worried about?

Thanks!

So I don't actually know if those diagnoses actually affect disability insurance, but you can and should get those removed from your chart. Start tracking your own blood pressures during the quietest, most low stress part of your day and boom hypertension gone (caveat being that it runs in your family, you've been on meds for years and have already optimized your lifestyle etc etc), prediabetes is a **** diagnosis that should never be in someone's chart, high cholesterol can be fixed by eating healthier for the most part. Lastly, and this is something that doctors have to be told too, but ADVOCATE for yourself. We see pt's everyday that have undergoing medical treatments that they don't necessarily need and that's because people are too scared to speak up for themselves.

 

[Arch Guillotti]

So I don't actually know if those diagnoses actually affect disability insurance, but you can and should get those removed from your chart. Start tracking your own blood pressures during the quietest, most low stress part of your day and boom hypertension gone (caveat being that it runs in your family, you've been on meds for years and have already optimized your lifestyle etc etc), prediabetes is a **** diagnosis that should never be in someone's chart, high cholesterol can be fixed by eating healthier for the most part. Lastly, and this is something that doctors have to be told too, but ADVOCATE for yourself. We see pt's everyday that have undergoing medical treatments that they don't necessarily need and that's because people are too scared to speak up for themselves.

I don’t think you can get anything really removed from your “chart”. Adverse medical info all goes to a centralized database that all insurers share.

 

[MirrorTodd]

I don’t think you can get anything really removed from your “chart”. Adverse medical info all goes to a centralized database that all insurers share.

What about the stuff that people get cured from? Like someone who had sepsis or something or pneumonia? I've seen problem lists that are a mile long and only a tenth of it actually applies to the patient. Is that stuff still relevant to the insurer? That's kind of eye opening actually.

 

[anonperson]

What about the stuff that people get cured from? Like someone who had sepsis or something or pneumonia? I've seen problem lists that are a mile long and only a tenth of it actually applies to the patient. Is that stuff still relevant to the insurer? That's kind of eye opening actually.

Probably depends. I wouldn't be surprised if there are statistics that show that someone with a history of sepsis etc has a higher risk of disability.

These insurance companies and their army of actuaries will probably have data on this.

 

[Arch Guillotti]

What about the stuff that people get cured from? Like someone who had sepsis or something or pneumonia? I've seen problem lists that are a mile long and only a tenth of it actually applies to the patient. Is that stuff still relevant to the insurer? That's kind of eye opening actually.

MIB, Inc. | Consumer Financial Protection Bureau

MIB, Inc.

www.consumerfinance.gov

No idea but if they canfind a way to deny you they will.

 

[EBTrailRunner]

1. Occupation Specific
2. 90 days for payment after becoming disabled (6 months may be too long)
3. COLA
4. Steady or same payment until age 65
5. Purchase only the amount you need like $7500-$10k per month (tax free)

This. I would double down on going with a level premium and also pay with post-tax dollars in order to avoid future taxation. Guardian is a reputable company. It’s what I use. Could you find a slightly cheaper policy? Probably. But as painful as it is to pay all of that money for a policy you hope to never need, should you need it, you don’t want to be dealing with a second-rate company.

 

[apr27]

Thanks for all the helpful responses. Are there any opinions on future increase option versus the benefit purchase rider?

 

[Dentists Disability Ins.]

Guardian and MassMutual are going to be your best options in California. Principal doesn't offer a "true own-occupation" policy in CA.

Most companies have gone towards the Benefit Purchase Rider as apposed to the Future Increase Rider. This forces you to apply for more coverage every 3 years, and accept at least 50% of what you're eligible for. MassMutual is the only one that still offers both options.

Depending on your age, I would suggest maxing out your base benefit before adding the COLA rider.

 

[apr27]

Thanks for all the input.

Any thoughts on a 90 versus 180 elimination period?

 

[abolt18]

Thanks for all the input.

Any thoughts on a 90 versus 180 elimination period?

Only thing that changes is how big your emergency fund needs to be. Mine is 90 days and my emergency fund is 3-4 months. If you do 180 days, you need to have a lot more cash stacked up to support you a MINIMUM of 6 months if you're out of work due to disability.

 

[makemoney2024]

Thanks for all the helpful responses. Are there any opinions on future increase option versus the benefit purchase rider?

I pay around that because I did not get all of it while in residency and didn’t bump it up quickly enough. How old are you? I only have borderline high cholesterol but am a woman.
What can you do about your health conditions? Are you overweight with a high fat content?
Can you start eating a cleaner diet with more fresh veggies and fruits and much less of the processed foods that Americans typically love? That will help the Pre diabetes for sure, your cholesterol possibly and maybe even your HTN. Depends on your genes and diet.
Otherwise shop around, hopefully you find something cheaper but be prepared to pay up. It’s around 6k a year for the 7.5k a month so slightly more than I pay but still affordable for what we make.
Just also please tell us you didn’t take an academic or Chicago job for $350k.

 

[Dentists Disability Ins.]

90-day is really the sweet spot for the insurance company. This get's them away from the short-term risk of broken arm/leg, etc. that you will recover from within a few months.
Going from a 90-day to a 60-day waiting period will shoot your premium up quite a bit (roughly 30%).
However, going from 90 to 180 doesn't save you as much (roughly 10%).

 

[TheLoneWolf]

I'm my first year as an attending. Little bit older and in California. HTN, prediabetes, and some high cholesterol on my chart. Residency....am I right? I'm late to the game, I know. I got some quotes from guardian. They seem to give me two options for each option if that makes sense. Perhaps the people with Guardian can weigh in.

5k = $250-$420/mo
7.5k = $275-$490/mo
7.5k = $320-$570 /mo

My questions:

1) Can I get better rates somewhere else?
2) What are buzz words, riders, or items I should be looking for or be worried about?

Thanks!

I went through the process with Amber Stitt. Overall, excellent and knows her stuff inside and out. Multiple quotes from multiple carriers.

Amber D. Stitt, ACP, ChFC®, GALLUP® - M.D. Disability Quotes

Amber received her undergraduate at Bellevue University in Business in Marketing with an emphasis in Economics. She also furthered her education with her

www.mddisabilityquotes.com