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My daughter will start a medical residency in July 2022. Evidently, she can purchase a disability policy at that time without medical underwriting. I am wondering,in general, do these policies end when she finishes her residency in 3 years and then she needs to again undergo medical underwriting, or can she keep the original policy long term?

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    Please add a country tag.
    – Flux
    Oct 6, 2021 at 10:25
  • How is the policy being purchased? If through an employer, generally speaking, no underwriting is necessary. If through an agent, unlikely as she could just continue to pay the premiums. However, I would check with the agent.
    – Pete B.
    Oct 6, 2021 at 10:55

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Such policies tend to be for a limited amount of monthly income for a students, residents and recent grads. How long they last would depend on the terms of the policy and contacting the insurance company would provide a definitive answer.

Though they lack earnings, this group has significant future earnings potential so most insurance companies have a "Special Limits & Streamlined Underwriting for New Professionals" which simplifies the underwriting process - no proof of income or lab testing.

I think it's reasonable to conclude that insurance companies want to get their foot in the door, hoping that when the student/resident graduates, they continue with their company. It's a reasonable bet on their part since they are young and healthy and the policy limits are modest.

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White Coat Investor is an opinionated site with an overview of the issues here. The site also shows advertisements from insurance brokers.

Among the interesting claims in the overview page:

  • An "own occupation" policy may be cheaper to buy as a medical resident and to keep for the entirety of one's career
  • The institutional affiliation as a medical resident may provide access to exclusive, valuable insurance products for individuals
  • Conversely, the group products offered by the institution are unlikely to be the best choice

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