Financial Planner

[migirl]

Re: Financial Planner

We purchased a separate disability policy for DH last year (during PGY-5). Our understanding was that it would be cheaper to have a policy in place while he's still in training, as the rates would go up once he starts making more money. My brain is a little bit foggy on the exact details, though... :huh:

Re: Financial Planner

DH started his policy around the beginning of residency at $1,000 a month coverage. I'm not sure if this would have been a problem but he got covered before his dad passed away and his mom developed a permanent disability. As part of his policy, he could increase it to $5,000 total coverage at the end of residency without more underwriting (no exam or health history).

Some jobs offered disability as a benefit and some did not. He doesn't have coverage through work which is pretty much ok with me. I am so glad his mom worked at an academic health center because she got very good coverage. However, I think the personal policy he has is better and I would prefer that.

Just saw migirl's post -- that was our understanding as well. The rates were based on his income and so we got a better rate when he was a resident.

Re: Financial Planner

Check it out for yourself, but if his disability is provided free to you (no premium), you would probably have to pay income tax on it.

[planet]

Re: Financial Planner

DH started his policy around the beginning of residency at $1,000 a month coverage. I'm not sure if this would have been a problem but he got covered before his dad passed away and his mom developed a permanent disability. As part of his policy, he could increase it to $5,000 total coverage at the end of residency without more underwriting (no exam or health history).

Some jobs offered disability as a benefit and some did not. He doesn't have coverage through work which is pretty much ok with me. I am so glad his mom worked at an academic health center because she got very good coverage. However, I think the personal policy he has is better and I would prefer that.

Just saw migirl's post -- that was our understanding as well. The rates were based on his income and so we got a better rate when he was a resident.

"You may choose to simply supplement what your group policy already offers and load up your policy with increase options. This will allow you to keep your premium low during residency and still reserve the right to increase it in the future without any medical underwriting."

From the KF financial website you posted (italics added by me). Ok, so it is doable during residency. If I understand cupcake and migirl correctly then, it is cheaper to get the policy as a resident and then as an attending the monthly (or yearly) premiums are lower for the same amount of coverage, like 5K/mo, than if you purchase the policy as an attending?

Re: Financial Planner

Yes, I think that is correct. At least that is the bill of goods she sold me. She is really nice and willing to explain things over and over to the type of person who has to understand every detail. I don't know if she can sell policies in your state but you could call her and get some info.

My understanding is that we are paying less than we would have because he started his policy during residency and we excercised that option to increase to the $5,000/month coverage. We had a certain timeframe we had to do that in. Sometime in August, I think.

[migirl]

Re: Financial Planner

My understanding is that we are paying less than we would have because he started his policy during residency and we excercised that option to increase to the $5,000/month coverage. We had a certain timeframe we had to do that in. Sometime in August, I think.

That is how I understood it as well.

[planet]

Re: Financial Planner

Ok, I met with the FP I picked this morning after "interviewing" by phone a handful of FPs last month. I'll ty to coherantly gather and pass on valuable info in a private forum. The good news is that this guy has quite a few resident and doc clients and had encouraging words and outlook for the future despite how financially bleak it looks to me now. But he also did emphasize some glaring holes in our life planning, such as lack of a will and health proxy, that I haven't really had on my radar.

Anyways, the good news is that there is a plan to be had.

Re: Financial Planner

Janet, either Smart Money or Kiplinger had an article a year or two ago about "5 things (documents?) you should have". I can't recall all 5 but I think will and medical POA sort of things were included. Having used the medical POA and living will for FIL and MIL...I just can't imagine how much more complicated things could have been without it.

The other items (I think!!!!) were life insurance, disability insurance, and umbrella liability policy. Hey, that is 5! I'll try again on finding that. Of course, all of those cost some time and money on your part. I think it is a good goal to get those over time but not all at once (unless you can).

[planet]

Re: Financial Planner

Good memory.

This guy mentioned three *essentials*
Will
Health proxy
durable power of atty

His take on insurance, after admitting to being a big insurance fan, was that it was a matter of what you (client) expect or hope the insurance will do for you.

Re: Financial Planner

I think he has a good point and that is a good thing on the list to start with.