Buying disability insurance before graduating

Q: Several insurance agents with whom I have met have told me that I need to purchase disability insurance while I'm still in training. What is the downside of waiting to purchase a policy until I graduate and earn more money?

If your graduate and your new employer provides you with mandatory LTD coverage, the insurance company will consider this fact when determining the maximum amount of private insurance to extend. As a result, you may find that you are eligible to purchase less coverage as an attending (earning substantially more money) compared with what you could have purchased under the "special limits" offered to residents and fellows.

Send your money management questions to memoney@advanstar.com
. Answers to our readers’ questions were provided by Lawrence B. Keller, CFP, CLU, ChFC, of Physician Financial Services in Woodbury, New York.