Summary

In this episode, Billy Gwaltney breaks down the essential details physicians and medical trainees should understand about securing disability insurance discounts, including grace periods, medical considerations, and tips for locking in rates early.

Key topics

  • The importance of securing disability insurance coverage before or shortly after graduation
  • The four top-tier carriers offering trainee discounts: Mass Mutual, Guardian, Principal, and Ameritas
  • Grace periods: 90 days for Mass Mutual and Guardian; 180 days for Principal and Ameritas
  • How health and moving during the grace period can impact your rates
  • Strategies for starting coverage at lower amounts and scaling later
  • Why it’s crucial to act promptly to secure discounts and maintain favorable rates
  • Additional resources and ways to connect for personalized advice

Key Takeaways

  1. Residents and fellows may still qualify for trainee disability insurance discounts after graduation, but the window depends on the carrier.
  2. MassMutual and Guardian currently offer a 90-day grace period after training ends.
  3. Principal and Ameritas currently offer a 180-day grace period after training ends.
  4. Waiting too long can create risk if health changes, new prescriptions appear, or medical screening becomes more complicated.
  5. Moving to a different state may affect disability insurance rates and should be considered before delaying coverage.
  6. Once a trainee discount is secured, it can typically be kept long term.
  7. Physicians may be able to start with a lower coverage amount and increase coverage later using a benefit increase rider.

Transcript

(00:01.848)

Welcome to the Cover Your Assets podcast, a show for the physician who understands the importance of protecting everything you’ve worked so hard to achieve. If you’re ready to find the peace of mind that only financial security can bring, let’s get started. Here’s your host, Billy Gwaltney.

Hi there, welcome to today’s episode of the Cover Your Assets podcast. I’m your host, Billy Gwaltney, and it’s good to be with you as it always is. In this episode, we’re going to cover trainee discounts. I work with physicians nationwide, helping them secure their private specialty disability coverage. And a common question for residents and fellows is, hey, is there a grace period for getting the discount? A lot of planning and transition and

moving across the country and other things are going on as people approach graduation. Sometimes they’re hoping to take care of this sooner than later. Other times they’re wanting to wait as long as they can. So it’s a very valid question. There are four top tier specialty carriers, Mass Mutual, Guardian, Principal, and Ameritas. They’re all four excellent. They all four offer trainee discounts. They vary in the grace period that they will give you in terms of how long after

graduation, post graduation, you can still access the trainee discount. Mass Mutual and Guardian are currently 90 days from the date that you finished training, your last day of training. So if you finished June 30th, you have until September 30th to get the trainee discount. If you apply in October, you don’t get the trainee discount. So that’s just how that works. Principal and Ameritas have a

180 day or six month grace period. So again, same example, you graduate June 30th, you have until December 30th or 31st to get the trainee discount. Now, of course, if you’re going through medical screening, you know, you’re kind of rolling the dice as far as being healthy ish, you don’t start any new prescriptions, you don’t have any health conditions that pop up, anything new on your chart that could make the medical screening more muddy.

(02:13.482)

Also, if you’re moving, then the state you live in when you buy the insurance can change the rates. You want to check the details of that. I’ve got other podcasts that I’ve covered in that on that topic. And also, you know, it just depends on whether or not you’re disabled, I mean, or whether or not you’re at work. Those are some of the questions that are required. You know, they don’t seem like they’re all that big of a deal, but.

They can be, if you back yourself into a corner, waiting as long as possible. So once you get the discount, you keep the discount forever. That’s the key. So it is important to try to get the discount if you can. You don’t have to buy the maximum amount of coverage up front. Depending on the carrier, you can start at $2,500. You can start at as low as $1,000. mean, some carriers will let you go lower.

as a trainee so that you can check the box, get the discount, take care of the coverage and making sure it’s in place and then use the benefit increase rider to scale coverage higher later once you’re an attending based on your attending income. So there are lot of ways to secure the coverage and get what you need and your family’s counting on you having if you can’t do your specialty and put that in place without waiting until the last minute.

and trying to squeeze in the door under the deadline. But happy to discuss your situation in more detail if it would help. Love answering questions. Message me here 704-270-2376. Again, 704-270-2376. Thank you. Look forward to hopefully speaking with you.

(04:07.478)

Subscribe, rate and review this podcast. For more tips and advice, visit the website and YouTube channel. Check the show notes for links. Join us next time for another episode dedicated to helping physicians like you get your disability insurance right and protect your way of life.

(04:27.694)

If you have more questions, please feel free to visit my website. You can also find me on LinkedIn and all major social media platforms. If you need to call my number again, in case you missed it during the episode, is 704-270-2376. Again.

That’s 704-270-2376. My name is Billy Gwaltney and I hope you have a great day. Thank you.