Medical Residents and Disability Insurance

Welcome to Season 5, Episode 23 of Winning Isn't Easy. In this episode, we'll dive into the complicated topic of "Medical Residents and Disability Insurance."

Think disability insurance can wait? Think again. In today’s episode, disability law expert Nancy L. Cavey breaks down one of the most important, yet often overlooked, decisions facing medical residents and fellows: protecting your ability to earn through disability insurance. You’re in the thick of training, focused on learning, growing, and surviving residency. But the reality is that life can change in an instant. An unexpected illness or injury could derail everything you’ve worked for. Nancy explains how the right disability policy can provide the financial security you need to keep paying student loans, maintain your lifestyle, and stay on track - even if you can no longer practice in your specialty. She dives into why your first financial decision as a resident might be the most important one you’ll ever make, what you need to know about GSI (Guaranteed Standard Issue) disability policies, and why timing is everything when it comes to coverage. Whether you’re just getting started or planning ahead, this episode offers practical insight and expert guidance you won’t want to miss. Let’s get started.

In this episode, we'll cover the following topics:

One - The First Business Decision Every Medical Resident or Fellow Should Make to Insure Their Financial Future

Two - I Am a Resident and Am Thinking About Getting a Disability Policy. What Is a GSI Disability Policy?

Three - The Six Reasons a Medical Resident Must Get a Disability Income Insurance Policy Now

Whether you're a claimant, or simply seeking valuable insights into the disability claims landscape, this episode provides essential guidance to help you succeed in your journey. Don't miss it.


Listen to Our Sister Podcast:

We have a sister podcast - Winning Isn't Easy: Navigating Your Social Security Disability Claim. Give it a listen: https://wiessdpodcast.buzzsprout.com/


Resources Mentioned in This Episode:

LINK TO ROBBED OF YOUR PEACE OF MIND: https://mailchi.mp/caveylaw/ltd-robbed-of-your-piece-of-mind

LINK TO THE DISABILITY INSURANCE CLAIM SURVIVAL GUIDE FOR PROFESSIONALS: https://mailchi.mp/caveylaw/professionals-guide-to-ltd-benefits

FREE CONSULT LINK: https://caveylaw.com/contact-us/


Need Help Today?:

Need help with your Long-Term Disability or ERISA claim? Have questions? Please feel welcome to reach out to use for a FREE consultation. Just mention you listened to our podcast.

Review, like, and give us a thumbs up wherever you are listening to Winning Isn't Easy. We love to see your feedback about our podcast, and it helps us grow and improve.

Please remember that the content shared is for informational purposes only, and should not replace personalized legal advice or guidance from qualified professionals. 

Transcript

Nancy Cavey [00:00:15]:
 Hey, I'm Nancy Cavey, national risk and individual disability attorney. Welcome to Winning Isn't Easy. Before we get started, I've got to give you a legal disclaimer. This podcast is not legal advice. The Florida Bar association says I've got to say this. And now that I've said it, nothing will ever prevent me from giving you an easy to understand overview of the disability insurance world, the games that carriers play, and what you need to know to get the disability benefits you deserve. So off we go. Welcome to today's episode where we're going to dive into one of the most important, yet often overlooked decisions that a medical professional faces early in their medical career.
 
 Nancy Cavey [00:00:55]:
 Disability insurance. Now, as a medical resident, you are at a crucial point in your career where your future financial security can hinge on one key decision protecting your ability to earn. Now, while you're focused on honing your skills and surviving the intense demands of residency, life can change in an instance. You know that better than anyone. Disability insurance can provide you with peace of mind, financial security and a safety net should the unexpected happen, allowing you to continue to pay for student loans, supporting your lifestyle, and most importantly, keep you progressing in your career even if you can't work in your specialty. In this episode, I'm going to walk you through why I think disability insurance is so critical for medical residents, the options that you have, and how to choose the best policy to ensure that you're fully insured. So whether you're just starting out thinking ahead, this is one episode that you don't want to miss. Let's get into it now.
 
 Nancy Cavey [00:01:55]:
 I'm going to talk about three things. I think this is the first business decision that you will ever make in your career and that is to ensure your financial future. Number two, I'm a resident and I'm thinking about getting disability policy. What is a GSI policy and should I get one? Number three, what are the six reasons that a medical resident must get a disability insurance policy? Now, let's take a break for a moment before we get back into this episode and come back with a paper pencil or your phone, wherever you're taking your notes so that you can record this valuable information.
 
 Speaker B [00:02:36]:
 Have you been robbed of your peace of mind by your disability insurance carrier? You owe it to yourself to get a copy of Robbed of your peace of mind which provides you with everything you need need to know about the long term disability claims process. Request your free copy of the book@kvlaw.com today.
 
 Nancy Cavey [00:02:55]:
 The first business decision that every medical resident or fellow should make to ensure their financial future. Now. Now that you've been matched and you're beginning your residency, I think you're faced with the first serious business decision of your professional career. How to protect your income Disability insurance is going to provide financial protection if you become unable to work because of illness or injury. And where would your income come if you were suddenly unable to complete your training? A disability insurance policy would allow you to continue making student loan payments, maintain your living expenses, and give you financial breathing room to adjust to this major life disruption. If you haven't already met patients who never thought that they have become disabled, you soon will. And I would be stun. If you are at this point in your career where you haven't seen that happen, you have witnessed firsthand how life can change.
 
 Nancy Cavey [00:03:52]:
 Many of your patients are living reminders of why planning for the unexpected, especially through disability insurance, is not only smart, but essential. Disability insurance offers peace of mind, financial security and protection of your earning potential now and in the future. So what are the three ways that you can secure your financial future? I think there are three options. Number one is to purchase what's called an individual disability insurance policy, an IDI policy two, enroll in a group policy through your employer or three, enroll in a residency specific disability income policy. I'm often asked, well what's the best option for me? And each case and situation is unique. It's based on your financial situation, your long term professional goals, and your health. But based on my extensive experience in representing medical professionals, I always recommend that you purchase an individual disability insurance policy. So why an IDI policy? So long as you pay the premiums, you can maintain coverage even through age 65 or 67.
 
 Nancy Cavey [00:05:03]:
 Number two, you can tailor that policy to fit your unique needs. This includes your benefits, amount, inflation protection, cost of living, adjustment riders, future insurability options, partial disability coverage, and even more. And you can purchase your own occupation specialty specific policy now that will pay benefits even if you're able to work in another medical field but not your trained specialty. Also, policies can be designed to minimize offsets or reductions from other income such as Social Security or workers comp. And many policies require that you apply for these so that they can reduce your benefits. So I like IDI policies. I know that they are expensive. I have had my own IDI policy since I began my legal practice and I have maintained that because I'm ensuring myself and I'm also with my office overhead coverage ensuring my ability to pay my overhead if I became disabled.
 
 Nancy Cavey [00:06:04]:
 So even us lawyers have disability insurance Policies and we have the same concerns that you do. Well, what about an employer provided policy? If you can't afford an IDI policy right now, the best short term solution is to enroll in your employer provided group disability. So many hospitals have disability insurance policies that they will offer. But I want you to understand that the moment you have the ability to upgrade to an IDI policy, you should. Let's talk about what you're going to get in an employer provided policy. You're going to get a policy or plan that's not customizable. So it's a one size fit all. It may contain limitations for mental health or subjective conditions.
 
 Nancy Cavey [00:06:50]:
 It may maintain or have limitations for other monies that you might receive as a result of disability. So if you are disabled as a result of an accident, you can collect workers comp benefits if you got coverage. And many of the ERISA policies, these group policies have the ability to offset your benefits by whatever you get. There are also often changes in the definition of disability. An inability to do your own occupation at first two years to an inability to do any occupation. And that's a much broader standard of disability. And of course I think one of the bigger problems is that this is all governed by an ERISA statute, which is a federal law that limits your legal rights if you ever need to file a claim. I also want you to understand that an employer provided coverage can be changed or canceled at any time.
 
 Nancy Cavey [00:07:45]:
 And it typically doesn't move with you as you change jobs. If your employer drops the benefit or you move to a different institution, you can be left uninsured. And I have seen that happen multiple times when employers either drop the insurance or change the carriers. And my client is on leave or has pre existing medical conditions that may or may not be getting treated. I mean, it's just a mess. So I want you to understand that. Well, what about residency specific policies? I bet you've been approached by more than one agent to sell you a policy that's limited to coverage during your residency. And I think these policies can serve a purpose only if you have a pre existing condition that would prevent you from qualifying for a traditional policy.
 
 Nancy Cavey [00:08:36]:
 Now you need to understand that residency policies often expire when your residency ends. And when that happens, where's your coverage? Now? If you develop a health issue during training, your ability to qualify for a stronger policy is probably compromised when your residency ends. And of course you aren't going to be able to take this residency policy only with you. And you may not be able to meet the long term Disability requirements for an IDI policy at that point, particularly if you've been getting treatment, this can be really confusing. And I think that you start with an experienced insurance agent to kind of work your way through your options. But I think you also should be consulting with a disability insurance attorney who can explain to you the different types of policies, what benefits you are entitled to, what you have to prove if you become disabled, and more importantly, what coverage that you should be having at this stage and how you want to have the ability to increase the coverage as your life changes, as you complete your training, as you get married, as you have children. Those are the kinds of lifestyle changes that can impact your coverage. And if you have made a mistake early in your career by purchasing the wrong kind of policy, inappropriate or just not enough and then failing to update it, you have really created an emergency for yourself.
 
 Nancy Cavey [00:10:12]:
 And in an emergency that you can't fix when you become disabled, it's a bomb waiting to happen. I think the other thing that you need to understand is if you're thinking about filing a claim on your disability policy, you, you should be consulting with an experienced attorney before making a costly error. This is like preventive medicine for your finances. If for some reason you are disabled and I've had this situation representing residents and their claim gets denied or terminated, you are not a lawyer. I'm a lawyer. I don't practice medicine. You don't practice law. You shouldn't try to handle this without an experienced assistance of an attorney who can walk you through the claims process, help you document your entitlement to benefits, and take on the disability carrier.
 
 Nancy Cavey [00:11:05]:
 While you are recovering from your disabling condition, treat yourself like you would treat a patient. Got it. Let's take a break. SA welcome back to Winning isn't easy. Hey, I'm a resident and I'm thinking about getting a disability policy. What is a GSI disability policy. Okay, so let's rewind this a little bit. There are three primary ways that a resident can get a disability insurance policy.
 
 Nancy Cavey [00:12:05]:
 Number one, and the one I like best. And of course the one that's most expensive but tailored to you is an individual disability policy. An IDI policy number two is an employer sponsored group policy governed by erisa. Now for the most part, a policy that you get through your employer, you know, hospital is going to be, or maybe even a group is going to be governed by erisa. The exception is if you work for a hospital based facility that has a religious affiliation. So Adventists, for example, that potential policy that you would get from them is excluded from ERISA because there is an exclusion for church based plans. So that's the exception you need to understand. But there's also a guaranteed standard issue, a gsi.
 
 Nancy Cavey [00:13:01]:
 Now it's there. Again, I like the IDI policy because it's fully customizable. It offers the most comprehensive protection. But I get it. You can't probably afford the premium of an IDI policy at the beginning of your career. But. But that should be your goal. If your employer offers you an ERISA based policy, take it.
 
 Nancy Cavey [00:13:21]:
 Remember, minimal underwriting, there are some significant limitations that reduce the value of the coverage. But at least you've got insurance. But we've got this little quirky thing called guaranteed standard issue disability policy, a gsi. And it's a special type of policy designed specifically for physicians, typically during residency or fellowship when you're employed by a large medical practice or facility. Now, it requires participation of a certain number of physicians affiliated with the same institution or program. Did you hear that word? Same and specific number. What is the advantages of a gsi? Well, there's no medical underwriting making it ideal for a resident who has pre existing conditions. It's got a lower premium because of the group pricing.
 
 Nancy Cavey [00:14:09]:
 And what you see are many of the features that you'll find in a traditional IDI policy, A COLA adjustment, partial disability coverage and future purchase options. And it is portable. In other words, if you switch employers and move to a private practice, it goes along with you. But what are the disadvantages? Well, there's limited customization options compared to a traditional IDI policy. The coverage and premium depends on the overall health and risk profile of the group, including the older physicians in the group. And I will tell you it often has limitations for the nature of or extent of coverage for mental health issues, substance abuse or subjective medical conditions. So what's right for you? Well, if you've got a pre existing condition or you need a quick no hassle coverage, GSI is the starting point. But if your health is good and your budget allows for you to have a traditional IDI policy, that's where I would go.
 
 Nancy Cavey [00:15:08]:
 And I want you to understand that you might actually have two. In other words, depending on your situation, if you've got pre existing condition, you would go with GSI and ultimately hopefully you would be able to qualify for an IDI policy. It might be that you're doing a GSI because you have a pre existing condition and or you are also doing ERISA based group policy and a combination and you can hear me trying to explain these options to you. The right policy for you depends on your situation, and I think it's really careful. You need to be careful. You may need to make an informed decision. You should be speaking with a professional agent who deals with medical professionals and the nuances of disability coverage issues for physicians. And of course, if you've got more than one policy, you should be consulting with an attorney such as myself to understand how these policies work in combination.
 
 Nancy Cavey [00:16:13]:
 Because there are some significant problems with having more than one policy. Not that I don't think you should or can't have more than one policy, but there are times when one policy will say, we're going to offset or reduce your coverage by whatever you get in this other policy. Or other policies will say, well, too bad, so sad. If you get this kind of coverage, be it an ERISA group policy, we're not going to offer you any payment under our policy. Confusing, but you need to understand it. So let's take a break.
 
 Speaker B [00:16:43]:
 Are you a professional with questions about your individual disability policy? You need the Disability Insurance Claim Survival Guide for Professionals. This book gives you a comprehensive understanding of your disability policy with tips and to dos that will assist you in submitting a winning disability application. This is one you don't want to miss. For the next 24 hours, we're giving away free copies of the Disability Insurance Claim Survival Guide for Professionals. Order yours to today@disabilityclaimsforprofessionals.com.
 
 Nancy Cavey [00:17:41]:
 Welcome back to Winning Isn't Easy. The six reasons a medical Resident Must Get a Disability Income Insurance Policy. Now look, I know throughout your career you are going to and probably have already treated patients who never expected to become disabled. One day that patient could be you. Now, I watched my father become disabled when I was in junior high school, and I know the devastating disability impacts of disability not only on my father, but I will tell you the devastating impact it had on our finances and our family's financial stability. So I'm often asked, should a medical resident purchase an IDI policy? And my answer is yes. If you can afford it, you should be doing it. Now, I know and you know that your current health status affects your insurability, and if your health changes ever so slightly, it could disqualify you from future coverage, lead to exclusions, and certainly lead to a higher premium.
 
 Nancy Cavey [00:18:42]:
 So you should be applying while you're young and healthy because that gives you the best chance to get full coverage. Secondly, it's more affordable when you're young and you're never going to be younger or generally healthier than you are right now. Disability insurance premiums are based on age and health, so locking in a low rate can save you thousands in the long run. And number three, you can tailor the coverage to your exact needs. Options include things like student loan repayment riders, partial disability or residual disability riders where you can work part time and still collect disability benefits. Cost of living adjustments, future insurability options that allow you to increase the amount of your benefits without additional underwriting. Own occupation coverage that protects your ability to work in your chosen specialty. Now, I want you to remember at 4 that residency coverage ends generally when your training ends.
 
 Nancy Cavey [00:19:44]:
 And if your health has changed during residency and you haven't secured an IDI policy, you may not be able to get coverage or an affordable coverage later. If you are having issues and believe me, you've seen it, I've seen it. Things can change on a dime. And while you may be healthy tomorrow, you might get hit by a bike as you're going back to your apartment. You could be involved in a motor vehicle accident, you could have a slip or fall. Things happen, life happens. And so you need to think about that. Also, number five, GSI policies don't offer adequate long term protection.
 
 Nancy Cavey [00:20:23]:
 As I've talked about, unless you have a preexisting condition, I don't really think a GSI policy is for you. It doesn't have the same level of customization or long term value that a well designed IDI policy does. And I will tell you, number six, legal rights are stronger under individual policies. Most policies provided by medical associations or an employer are typically governed by the ERISA statute. And it's a federal law that you unfortunately will learn a lot about because ERISA governs not only disability insurance, life insurance, but health insurance. And so you and your career are going to be learning, if you haven't already learned about the wonderful, not so wonderful world, about erisa. ERISA is not a friendly place for anybody, much less doctors, particularly if you are disabled. So you don't want, if you can help it, to have an ERISA based policy.
 
 Nancy Cavey [00:21:20]:
 You want an IDI policy. It falls under state law that offers broader protections, including the right to sue for bad faith, punitive damages, and the ability to recover your attorney's fees. Even bad faith. If you're serious about protecting the investment that you're making in your education and your future, don't delay. I think that the right disability insurance policy is, is not just the right financial tool, it's a professional necessity and it's a decision that you should make now. It's one of the first business decisions that you're going to make in your medical career, and it's one that can impact you for life. If you don't think I'm if you think I'm joking, I'm not. I represent residents.
 
 Nancy Cavey [00:22:07]:
 I represent physicians, all of whom can become disabled at any stage of their career. I represent physicians who never thought that they would become disabled, but they made the wise decision, like my father did, to get a disability insurance policy, and now they are collecting those benefits because they made that wise financial decision. Please protect yourself, protect your family, protect your future income. I know what it's like to be inside the family of a disabled wage earner, to watch the process of a loved one, accept the change in their identity, to deal with the impact of not being able to work on the family finances and the family future. It even impacted my entire college and law school career. Thank you for tuning in to this week's episode of Winning Isn't Easy. If you found this episode helpful, please take a moment to like our page. Please leave a review and share it with your family and friends.
 
 Nancy Cavey [00:23:11]:
 And please subscribe to this podcast. Join us next week for another insightful discussion of an episode of Winning Isn't Easy. Thanks for listening.