Ideally, this is while you are still in training or early on in practice.
The following chart depicts the difference in annual premiums based on the age the policy was initially purchased for a simple, bare bones policy, in a male non-surgical physician, who makes approximately 300,000$ a year and accordingly, wants a $10,000 per month disability pay out.
It's clear to see the effect that age has on the policy premium. And this is assuming these physicians are healthy.
We know, more than anybody else, that as we age, the likelihood of acquiring disease or injury only increases.
Unfortunately, pre-existing conditions may affect your ability to obtain an individual long-term disability policy. This includes any current medical condition(s) and even previous surgeries that you may have had.
Depending on the situation and the company, you may be precluded from receiving the best rates and/or may be limited in the amount of total coverage that is allowed.
Alternatively, a company may simply choose not to cover you for any disability that they feel relates to your medical condition(s) and/or previous surgery.
Finally, you may be completely excluded from obtaining a disability policy.
In a recent market analysis, only 47% of disability policies were issued as applied for. A staggering 34% were modified, and the rest were either completely declined or not accepted.
The exclusion / preclusion provisions are individual to specific companies and are constantly changing.
We all have a bit of an invincibility complex. But as physicians, we know more than anybody, else that disease can hit anyone, at any time.
According to recent statistics, 30% of physicians who reported disability were under the age of 45.
The data's pretty clear: it's much better to lock in a policy early when you are young and healthy.
Tobacco use of any kind may additionally preclude you from obtaining the best rates. A market analysis in 2021 demonstrated a 25% median increase in premiums across all insurers when an applicant was a tobacco user. Keep in mind, this may include vaping, chewing tobacco, and even marijuana use.
You may ask why your former classmate who lives in West Virginia got a cheaper quote on a similar policy to yours despite you both being of similar age and similar health. One of the reasons for this, is that pricing of policies can be affected by location.
When companies see a higher number of claims from certain states, they raise the rates for individuals applying from those states.
Many insurance companies offer discounts to certain employers and certain professional associations. We are able to pass these discounts on to you.
