Residents & Fellows In 2017

We believe the most valuable asset that you have is your ability to generate income throughout your career, making individual disability income insurance in a non-cancelable policy a cornerstone of a sound financial strategy. Individual disability income insurance provides a monthly benefit if you are unable to work for an extended period of time due to sickness or injury. Through this offer, which is issued by Massachusetts Mutual Life Insurance Company (MassMutual) and separate from the administration, you are able to lock into excellent policy definitions, fixed rates, and significant discounts. The main features are as follows:

  • Protects you in your own occupation (and insurer cannot change the policy terms)
  • Up to $17,000 per month of individual coverage in this one policy (amounts above the Guaranteed Standard Issue (GSI) amount are subject to medical underwriting)
  • Fixed premiums until age 65; coverage additions will increase the premiums
  • Unisex rates and discounts and the policy is portable until age 65
  • The ability to increase coverag as your income rises annually (provided insured is not hospitalized, not disabled, and not collecting benefits) without further medical underwriting (up to the GSI monthly benefit; coverage above the GSI will be subject to full medical underwriting)
  • Guaranteed Standard Issue coverage (if you have been actively at work on a full time basis for 90 days)-
    • While in training, eligible residents will be offered a Guaranteed Standard Issue (GSI) monthly base benefit of up to $5,000 (with $10,000 of future options)
    • When leaving training, eligible residents will be offered a Guaranteed Standard Issue (GSI) monthly base benefit of up to $7,000 (with $8,000 of future options)

Residents during training

By putting coverage in force now, you lock into this policy through age 65. If you wait 1-4 years to get coverage, you may pay substantially more for a policy. Even a small amount of coverage gives you the right to keep the discounts and apply for more coverage in this policy at a later date when your income rises (amounts above the GSI are subject to medical underwriting). Provided you are eligible for benefits, we believe you should be protected during your training to the highest possible level.

Residents leaving WITHOUT group long-term disability (LTD) coverage

Many physicians have to provide their own long-term disability insurance. Additionally, many association plans do not offer non-cancelable coverage at fixed prices. This is one of the most important features of a policy for doctors because insurance companies, in some association plans, can cancel coverage or raise prices. You have a limited time to apply for this policy with simplified underwriting and discounted rates. After that period, you can still apply for the policy; however, you will be subject to the full underwriting requirements of the issuer. You reserve the option to apply for more coverage as your income rises in this policy with the discounts each year (up to the maximum monthly issue limit; amounts above the GSI are subject to underwriting). Through this offer, as long as premiums continue to be paid on time, the policy cannot be canceled or altered by the insurance company before age 65. If you do not know what your income will be or where you will work, you can still apply for this policy.

Residents leaving WITH group long-term disability (LTD) coverage from employer

Not all employers offer group LTD as a benefit. If they do, benefits payable under this group coverage would be taxable to you if your employer pays the premiums and you could still have a serious income deficit during a period of disability. The benefits payable under the individual disability income insurance policy are non-taxable because you pay the premium. By purchasing an individual disability income policy, you spend a small fraction of your income to help ensure that you have adequate income protection. As a disability income insurance policy is the cornerstone of your financial strategy, this is an important consideration. For higher income physicians, this policy will supplement your taxable group coverage and give you a higher possible net benefit, should you be eligible.*

*The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

This supplemental individual disability income insurance does not coordinate with your group long term disability coverage. Claim decisions are rendered independently of each other.

This policy is issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111, and has exclusions and limitations. For costs and complete details of coverage, please contact me at the above number.

CRN # 201801-199023