Income Coverage

As a medical resident, how long can you afford to be without pay because you can not work due to illness or injury? Can you afford to literally burn through the majority of your savings over a period of several months?

Disability insurance is often the last thing in mind a medical resident. Long, painful changes tending to the needs of countless patients can leave little room for anything else.

Unfortunately, this lack of foresight can lead to real problems in a short period of time.

As with other Americans, medical residents have a 1 in 3 risk of being unemployed for 90 days due to illness or injury and a 1 in 5 risk of being for one year or more. Because of the daily proximity to disease, the probability may be even higher.

Because medical residency is a crucial period in the career of a doctor, the time lost during this phase of professional development can set a month back resident, if not more. In addition, the loss of income realized during such an event can have consequences that are felt in the distant future. The loss of income during residency can lead to foreclosure and even bankruptcy in a few months, especially for residents with a family. The inability to work plus the amount of time needed to concentrate on his personal affairs may even lead to loss of position within a residency program.

Fortunately, medical residents have proactive options to protect their income. On disability insurance provides coverage for a portion of lost wages if you can not work due to illness or injury. Several types of income insurance are available as needed.

In the short term and long term disability insurance

Short term coverage generally provides benefits for a maximum of 6 months. Keep in mind that benefits are not usually begin until after the elimination period policy, usually 30-90 days after the onset of disability.

Advantages of a long-term disability insurance kicks in the period after short-term benefits expired. Long term benefits may last as short as 2-5 years or until age 65. Some policies even last a lifetime.

Additional Disability Insurance

Residents can work for an employer who offers coverage disability insurance. This type of political advertising in general to cover up to 60% of regular salary if you are unable to work. The benefits of such policies, however, are taxed as regular income, down actual cash flow to go for nearly 45%. Group policies are also commonly riddled with exceptions and limitations that hamper when benefits are paid and for how long.

Group coverage the employer is a good start, but relying on it alone can lead to a surprise is not so happy later.

disability insurance are additional at very affordable plug the holes in the coverage group. A policy can further extend the coverage to 100% of income and benefits from complementary policies are not taxable. This extension of coverage may also be designed to cover the particularly limited in the group policy, such as nervous or mental-type disabilities.

Catastrophic Disability Insurance

While other types of disability insurance to protect revenue streams a medical resident, catastrophic disability insurance covers the cost of home or residential care facility during a prolonged recovery period. Often this care is left to the spouse or family members who may put further strain on financial and emotional an already difficult situation.

Although this type of coverage is generally considered those over 60 years, over 40% of beneficiaries of catastrophic coverage are between 18 and 65.

Benefits of a catastrophic coverage policy are usually paid on a per day.