According to the American Medical Association, the average investment in medical school is between $18,228 to $74,035 per year. That’s a total of $230,792 for medical school education – an investment worth making and protecting. But how do you protect that investment? The answer lies in own-occupation disability insurance.
How Own-Occupation Disability Insurance Protects Your Med School Investment?
Own-occupation disability insurance covers lost income in the event that you become unable to work due to disability. Own-occupation disability insurance is available in long-term and short-term coverage and provides 60-80% reimbursement for lost wages due to disability. The average short-term policy generally covers up to three months of lost wages, whereas long-term disability can cover lost wages up to the age of retirement.
How To Find a Reputable Insurance Provider?
Different insurance providers offer different rates based on their own unique formulas. These formulas take into account age, health, and earnings. One of the first steps you should take in finding a provider is to get quotes from multiple providers.
Multiple own-occupation disability insurance quotes will give you pricing options and allow you to choose a policy that fits your budget while getting the best policy possible.
The best way to obtain multiple quotes is to work directly with an experienced disability insurance agent who can compile a custom plan.
Definition of Disability And Your Own Occupation Policy
When investing in an own-occupation disability insurance policy, ensure that the policy is specifically for your occupation. An occupation-specific disability policy ensures that you are covered financially for disability claims related to your field of expertise.
For example, a dentist-disability insurance policy caters to disability claims that are most common to dentists – repetitive motion injuries, back injuries, neck injuries, shoulder injuries, chronic pain, cancer, and heart disease.
Making Your Own-Occupation Disability Insurance Policy More Affordable
Although own-occupation disability insurance is necessary, it doesn’t mean it has to cost you a fortune. It is possible to make your policy more affordable by:
- Investing in your policy when you are young and healthy – you will pay less than you would if you wait until you have pre-existing medical conditions. Trying to get a policy with existing health problems is next to impossible.
- Moderate the amount of coverage you purchase – if you find that a policy is too expensive, consider reducing the coverage amount until you are able to afford additional coverage.
It is tempting to invest in a group own-occupation disability insurance policy instead of an individual policy – DON’T! Group insurance policies are more affordable, but that affordability comes at a cost:
- Group disability policies often pay less in benefits
- Group disability policies often pay out in fewer situations
- Group policy providers often make policy changes at any point during the policy life
Own-occupation disability insurance gives doctors and dentists reassurance that if they become incapacitated or unable to work, their income is protected. While this type of insurance policy cannot cover 100% of lost wages, it does provide a safety net that minimizes losses and is often enough to maintain a comfortable lifestyle.