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Should Medical Students Consider Disability Insurance?

Purchasing a policy while still in medicalriding behind a medical student's debt, there
school presents tremendous advantages thatare other long-term advantages to purchasing
can save students money after graduation,a policy as a student instead of as a
while protecting their financial future andphysician. A student purchasing a policy
providing the peace of mind necessary towill likely get a lower rate than a
focus on the demands of a career in medicine.physician. According to three factors
determine disability insurance rates: age at
Last year the Association of American Medicalthe time of purchase, occupation, and health
Colleges (AAMC) said that schools shouldstatus. These factors tend to favor a
require disability insurance for all medicalstudent. Not only are students younger, but
students and provide access to policies.generally the health status of younger people
Medical students are particularly vulnerableis better than that of older people.
to the financial hardships that may resultObtaining insurance at a younger age may also
from a disability. Disability insuranceprotect the policyholder from the
protects students from possible fiscaldifficulties of securing a policy later in
disaster and is also a prudent investment.life when other health issues may affect
Purchasing a policy while still in medicalinsurability.
school presents tremendous advantages that
can save students money after graduation,A disability insurance policy also adapts to
while protecting their financial future andmeet the changing needs of the insured. A
providing the peace of mind necessary toFuture Increase Option (FIO) Rider allows the
focus on the demands of a career in medicine.policyholder optional future increases in
coverage without providing evidence of
Most medical students do not generate incomemedical insurability. The ability to
while in school, but instead accumulate debtincrease coverage regardless of current
at staggering rates. In 2005, medical schoolhealth status is attractive to any
graduates who took out loans started theirpolicyholder, but the FIO Rider is also ideal
residencies with an average debt of $100,000,for a student who wants to increase coverage
a figure that does not include undergraduateupon graduation and the expectation of
debt. Only the expected future income from asignificant income. A policy purchased by a
career in medicine makes such exorbitant debtstudent before they take their first class in
palatable; however, a student that suffers amedical school can be flexible enough to last
disability may never realize that income.a  career.
According to the 1994 Statistical Abstract of
the United States, in the course of a year, 1The protection, flexibility, and benefits the
in 10 people between the ages of 25 and 64insured has by purchasing a disability
will suffer a disability. When comparinginsurance policy as a student are reflected
that ratio to the odds of being victim of aby the stance that medical schools take.
house fire (1 in 122); injured in anDartmouth Medical School and the University
automobile accident (1 in 160); or even ofof North Carolina School of Medicine mandate
death (1 in 117), the value and protectionthat all students have disability insurance.
offered  by  disability  insurance  is clear.While in some states it is illegal to require
students to have a disability insurance
A student who suffers a disability and ispolicy, most medical schools at least
unable to complete their education will berecommend that all their students have it.
saddled with student loan debt and may not beIn 2006, the University of Washington School
able to work in any field depending on theof Medicine was ranked by U.S. News and World
disability and its severity. Repayment ofReport as one of only three schools in the
student loans combined with medical expensestop 10 for both research and primary care.
and lack of income due to disability canTheir office of student affairs and services
destroy a financial future. Even a studentsays it is "advisable" to have disability
that is able to continue medical school couldinsurance in light of the cost of education
face the burden of simultaneously repayingand risks associated with practicing
loans  and  paying  tuition.medicine. The school offers its students a
plan, but in general, group plans come with
Aside from the obvious advantages disabilitylimitations and restrictions.
insurance offers by minimizing the risk



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