Updated: Aug 30
Every June, we have a transition of graduates – either those from medical school going to training or those who have been training and are now heading to practice. Also around this time, we see people doing a mad dash to buy their disability insurance by June 30th. This deadline date, however, is a myth and has been used as a sales tactic now for decades.
Do resident/fellowship discounts expire once you finish training?
Yes, those discounts will eventually end, but not as quickly as you think. Physicians are always asking us if the resident discount ends the day training ends because they received emails about this or saw countdown clocks through emails at work. We feel that it is time to share the real rules with you!
After you have finished all training (including fellowship), the discounts that are available because of the affiliation to your training program will expire depending on the carrier’s guidelines. Also, please note that the expiration is from the date YOU finish your training. If you are ‘off’ cycle, you can match your specific end-date to the extensions per the carrier’s rules below.
Carriers that have a shorter window:
Mass Mutual offers a +90 day extension
Carriers that have a longer window:
Ameritas offers +180 days
Guardian offers +180 days
Pricipal offers +180 days
Standard offers +180 days
OhioNational’s discount will depend on the program; usually no expiration for MD/DO
Please don’t let a representative, broker or agent tell you that you have to “buy in June or lose the discount” because it is merely a tactic they use to close a transaction. If you’re approached this way, you should probably look for another team that you would like to represent you through your specific disability insurance buying process. Remember, your representative needs to help you manage your policy over the years, so feel good about the relationship from the beginning. You should look forward to their assistance in the future and trust they will be there for you.
No matter who you work with, below are the reasons to start your research now, at a point in time when you have a moment to digest the information and make an informed decision:
Your current health could change causing declines or modifications to your policy
If your birthday is near, the price per month could change about $10-20/monthly
You may be changing states for your new job so you could shop both states’ rates to see which states offer the best pricing for you
As summer approaches, we wish you luck with all of your new endeavors! We wish you health and safety as you transition to the next phase of your careers.