Is the Residual Disabilty Rider Worth It for Emerg Physician?

[ashishnarang]

hi all,

i went thru the guardian underwriting process, 10k benefit.
is the residual disability rider worth it? it is $700 a year
also i think 10k is enough an i am not taking the fio rider either...it is $324 extra a year. i am taking cola.

see attached for policy info.
thanks!

 

[somarco]

Why do you believe the rider is not worth the extra premium? Have you presented the offer to your client and let them decide?

 

[dgoldenz]

Yes it is worth it. Do you want to be paid if you become partially disabled and lose income because you can't work full time anymore? What if you can't go back to your old job or get terminated from the contract, then go work in the same job at another facility that pays half as much (or 60%, or 70%, etc)? I'm sure you would want to be paid on the lost money. Your agent should be answering these questions...

I also think you're making a mistake not including the FIO. It's not that expensive, gives you more flexibility, and is really pocket change in comparison to what your income is/will be. A health problem could easily change your perception of whether the FIO is worth buying or not.

If you are making retirement contributions, I would also suggest adding the retirement protection rider. I have FIO, residual, COLA, and RPP on my own policy and feel they are well worth the extra money.

Why do you believe the rider is not worth the extra premium? Have you presented the offer to your client and let them decide?

Pretty sure he is the doc, not the agent.

 

[scagnt83]

You would be a fool not to get the residual benefit. Most disabilities are partial ones.

The FIO is cheap, and is used all the time... foolish not to get it too imo; especially for an emerging physician whom I assume can afford it.

Yes, get the best value for your money, but dont cheap out over a few dollars. It will bite you in the but in the long run.

 

[BNTRS]

foolish not to get it too imo; especially for an emerging physician whom I assume can afford it.

Actually, a lot of them don't have the money we'd like to believe they do.

As far as the rider, this is a judgment call on your end. What does your budget look like? Will you always live below your means and keep a great cash reserve? Are you willing to sacrifice your standard of living, your wealth/legacy building potential, or your family's well being just to save $700/year?

We can't really tell you specifically if it's worth it. We can only help you put it in perspective. The worth or value of this thing is all on you.
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Oh and if afford-ability is a concern at this stage, pay attention to page 3. This policy can be done graded YRT, and Berkshire/Guardian is super competitive (read attractive) on this sort of pricing at your age.