This is a common option for many resident physicians, but is it right for you?
What is Step Rate Disability Insurance
As the name suggests, the rate, otherwise known as a premium (which is typically paid monthly or annually) starts low and steps up after a set period of time.
Why it Might be a Good Option
This plan allows for residents to pay less while their income is low. The older someone is when they purchase disability insurance, the more expensive it can become. Plus, you never know when an event which can make you uninsurable will occur or when you'll benefit from having coverage.
The worst time financially for a medical professional to become permanently disabled due to disease or an injury is early in their career. This is because young professionals have more time left to earn money and often have a large amount of student debt.
Are True Own-Occupation Step Rate Plans Available?
Yes, step rate plans can be available as true own-occupation disability insurance.
Are There Other Similar Options?
Keeping the cost low for the first few years is critically important for many physicians. Instead of using the step-Rate strategy, many opt to obtain a standard policy with a "Future Increase Offer" Rider. This way, a lower amount of insurance can be obtained for a low price and later the coverage can be increased.
Is keeping your costs low an important part of your current financial plan?
What's best for Your Unique Financial Situation?
The right financial advisor can help you reach your potential. Pro Financial network serves many physician clients across the United States and understands the unique financial needs of a physician.
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