disability insurance starting medical residency

Question

My daughter will start a medical residency in July 2022. Evidently, she can purchase a disability policy at that time without medical underwriting. I am wondering,in general, do these policies end when she finishes her residency in 3 years and then she needs to again undergo medical underwriting, or can she keep the original policy long term?

Answer 1

Such policies tend to be for a limited amount of monthly income for a students, residents and recent grads. How long they last would depend on the terms of the policy and contacting the insurance company would provide a definitive answer.

Though they lack earnings, this group has significant future earnings potential so most insurance companies have a "Special Limits & Streamlined Underwriting for New Professionals" which simplifies the underwriting process - no proof of income or lab testing.

I think it's reasonable to conclude that insurance companies want to get their foot in the door, hoping that when the student/resident graduates, they continue with their company. It's a reasonable bet on their part since they are young and healthy and the policy limits are modest.

Answer 2

White Coat Investor is an opinionated site with an overview of the issues here. The site also shows advertisements from insurance brokers.

Among the interesting claims in the overview page:

• An "own occupation" policy may be cheaper to buy as a medical resident and to keep for the entirety of one's career
• The institutional affiliation as a medical resident may provide access to exclusive, valuable insurance products for individuals
• Conversely, the group products offered by the institution are unlikely to be the best choice