Should Medical Students Consider Disability Insurance?

Last year the Association of American Medicalinstead of as a physician. A student purchasing a
Colleges (AAMC) said that schools should requirepolicy will likely get a lower rate than a physician.
disability insurance for all medical students and provideAccording to doctordisability.com, three factors
access to policies. Medical students are particularlydetermine disability insurance rates: age at the time of
vulnerable to the financial hardships that may resultpurchase, occupation, and health status. These factors
from a disability. Disability insurance protects studentstend to favor a student. Not only are students younger,
from possible fiscal disaster and is also a prudentbut generally the health status of younger people is
investment. Purchasing a policy while still in medicalbetter than that of older people. Obtaining insurance at
school presents tremendous advantages that cana younger age may also protect the policyholder from
save students money after graduation, while protectingthe difficulties of securing a policy later in life when
their financial future and providing the peace of mindother health issues may affect insurability.
necessary to focus on the demands of a career inA disability insurance policy also adapts to meet the
medicine.changing needs of the insured. A Future Increase
Most medical students do not generate income while inOption (FIO) Rider allows the policyholder optional
school, but instead accumulate debt at staggeringfuture increases in coverage without providing
rates. In 2005, medical school graduates who took outevidence of medical insurability. The ability to increase
loans started their residencies with an average debt ofcoverage regardless of current health status is
$100,000, a figure that does not include undergraduateattractive to any policyholder, but the FIO Rider is also
debt. Only the expected future income from a careerideal for a student who wants to increase coverage
in medicine makes such exorbitant debt palatable;upon graduation and the expectation of significant
however, a student that suffers a disability may neverincome. A policy purchased by a student before they
realize that income. According to the 1994 Statisticaltake their first class in medical school can be flexible
Abstract of the United States, in the course of a year,enough to last a career.
1 in 10 people between the ages of 25 and 64 willThe protection, flexibility, and benefits the insured has
suffer a disability. When comparing that ratio to theby purchasing a disability insurance policy as a student
odds of being victim of a house fire (1 in 122); injured inare reflected by the stance that medical schools take.
an automobile accident (1 in 160); or even of death (1 inDartmouth Medical School and the University of North
117), the value and protection offered by disabilityCarolina School of Medicine mandate that all students
insurance is clear.have disability insurance. While in some states it is illegal
A student who suffers a disability and is unable toto require students to have a disability insurance policy,
complete their education will be saddled with studentmost medical schools at least recommend that all their
loan debt and may not be able to work in any fieldstudents have it. In 2006, the University of Washington
depending on the disability and its severity. RepaymentSchool of Medicine was ranked by U.S. News and
of student loans combined with medical expenses andWorld Report as one of only three schools in the top
lack of income due to disability can destroy a financial10 for both research and primary care. Their office of
future. Even a student that is able to continue medicalstudent affairs and services says it is
school could face the burden of simultaneously�advisable� to have disability
repaying loans and paying tuition.insurance in light of the cost of education and risks
Aside from the obvious advantages disability insuranceassociated with practicing medicine. The school offers
offers by minimizing the risk riding behind a medicalits students a plan, but in general, group plans come
student�s debt, there are other long-termwith limitations and restrictions.
advantages to purchasing a policy as a student