Can you recall the moment when you became an adult? Was it when your mother told you that you had to start making your own dentist appointments? When your parents stopped paying for your cell phone and suddenly data usage was something you now understood and watched obsessively? Our lives are filled with these small moments leading toward independence and adult responsibilities. Another indicator of this passage to adulthood, is accepting responsibility for your career and your income; and a big part of that is understanding how insurance supports this.
Although many factors determine insurance premiums, age is one of the most critical components—generally the younger you are, the less premiums you pay. Now while in your 20's, you are investing hundreds of thousands of dollars toward a future in medicine and that income (and debt) needs to be protected. It just makes sense.
In general, disability insurance is designed to replace a portion of your income if you become disabled and are unable to earn an income. A disability can result from a number of causes, including mental illness, injury or a physical disease and the duration of a disability can be either short- or long-term.
In Canada, mental illness is by far the fastest growing category of disability claims. According to the Centre for Addiction and Mental Health, one in five Canadians will experience a mental illness or addiction in his or her lifetime.1
In case you have to take some time off from medical school to recover from a disability, your current or any expected bills will not take leave! Therefore, the tax-free monthly payment that you will receive from disability insurance may help support you financially and prevent you from accumulating more debt.
Why get your disability insurance during medical school? The question really should be why wait? We can't tell you how many calls we get from members who waited and then either had a claim (too late now) or finally decided they were ready to get coverage, but something happened to their health that made them ineligible. When you think about how important the protection is, can you really think of a compelling reason to wait?
Addressing one's disability and life insurance needs is the first step in the overall financial planning process. Because disability insurance contracts can be complicated, it is essential to obtain objective advice from insurance experts.
As a medical student, you may think that you don't need life insurance now because you may be single with no dependents. Nevertheless, there are reasons to consider the need for life insurance.
Life insurance can provide financial security for the people you love by providing a tax-free payment to your beneficiaries upon your death. By having a small life insurance policy naming your parents as your beneficiary could leave enough funds to cover any student loans debts and funeral expenses.
If you have a health condition or a family history of cancer or heart disease you might have trouble buying life insurance as you get older. Even if you're single at this point and don't have the responsibilities of a family, it might be wise to buy life insurance now before it becomes more expensive or you become uninsurable.
Insurance forms the foundation of your overall financial plan. So talk to your classmates—68% of medical students have made the smart decision to protect their medical school investment. While considering all of the priorities and responsibilities that you have, you may want to spend a bit of time protecting your future income through insurance.
As the insurance arm of the Ontario Medical Association, we bring added value to medical students through education and objective advice. Medical students can apply for $100,000 of life insurance from OMA Insurance at no cost while a student. With the OMA Student Special Offer, members can also apply for up to $4,000 a month in disability benefits even if they are not currently earning an income.