A disability insurance agent, who is on commission, recently had a meeting with a group of medical residents. She strongly recommended purchasing the insurance immediately, as the option is guaranteed now regardless of health and rates cannot be raised later, though she wasn't clear on what the latter meant.

I am young, perfectly healthy, and will have a much higher income in 5 years from now. Assuming my health stays normal, is there any advantage to purchasing the disability insurance now while income is low vs. waiting until his salary is high?

Thanks!

There are several reasons why you should purchase your policy while you are still a Resident. These include locking into contract provisions, locking into a lower premium while you are young, protecting your income today as well as protecting your future earning potential.

One main reason depends on what you will be doing when you complete your training and whether or not your future employer will be providing you with group Long-Term Disability (LTD) insurance.

In many cases, if you wait, and your future employer provides you with LTD (that you can't waive out of), you might find that you are eligible to purchase less coverage as an Attending (earning much more money) than you could have purchased under the

Zip Code: Lkeller@physicianfinancialservices.com