Medical residency and internship are some of the most demanding periods in a doctor’s career.
Long hours, intense training, and physical and mental stress are all part of the journey to becoming a skilled medical professional.
However, the demanding nature of this path also means that medical residents and interns are at a higher risk for illness or injury.
Research has shown that 1 in 4 workers become disabled during their working years. When you can’t work, you don’t earn income. Disability insurance helps by paying you cash if you’re too sick or injured to work.
Many people think disability insurance is only for work-related accidents, but those are covered by worker’s compensation insurance.
Short-term disability insurance covers medical conditions that keep you from working, like chronic illnesses or injuries. Some short-term policies also cover pregnancy.
SEE ALSO: Accidental Insurance Policies, Benefits and Cost
What is Short-Term Disability Insurance?
Short-term disability insurance is one of two basic types of disability coverage; the other is long-term disability.
If you can’t work, STD pays part of your income weekly or monthly. You can use this money for anything, like rent, utilities, loans, childcare, groceries, or even entertainment.
STD is for temporary medical conditions. Most people get STD through their employer. Some states require employers to provide it.
Here are the key features:
Benefit Amount: If you get sick or injured and can’t work, STD pays you a portion of your usual income. This is typically between 50% to 80% of your normal pay, depending on your plan.
Premium: The monthly cost of the policy, paid by you or your employer. Costs vary based on the benefit amount and period.
Elimination Period: The waiting time after you’re disabled until you start receiving benefits. A typical period is 14 days.
Benefit Period: The length of time you can receive benefits, usually 3 to 6 months.
Temporary Conditions: STD is meant for temporary health issues. This could be anything from a severe illness to an injury that prevents you from doing your job.
Employer Coverage: Many people get STD through their job. Some states even require employers to offer this insurance. Group plans through employers often cost less and provide more coverage.
Elimination Period: There’s usually a waiting period (often around 14 days) from when you become disabled to when you start receiving benefits.
To get benefits, you need to file a claim with evidence like medical records. If you have coverage through work, contact your HR department. If you have an individual plan, check your policy for claim instructions.
Short-Term Disability and Pregnancy
The Family and Medical Leave Act allows most workers up to 12 weeks of unpaid leave for childbirth, but only 15% of employees get paid family leave.
If your employer offers paid family leave, you might not need short-term disability. If your policy covers pregnancy, you can typically receive 6 to 8 weeks of benefits after childbirth.
Why Medical Residents and Interns Need Short-Term Disability Insurance
Medical residents and interns have long hours and demanding jobs. With limited income and high debt, short-term disability insurance is crucial.
Here are the main reasons why:
1. Income Protection
Residents and interns often have limited income and high student debt. If you become disabled and can’t work, short-term disability insurance can replace a portion of your income to help cover essential expenses like rent, utilities, and groceries.
2. Physical and Mental Demands
The physical and mental demands of residency programs increase the risk of illness or injury. Having short-term disability insurance ensures you have financial support if you need time off to recover.
3. Limited Savings
Many residents and interns have not had the opportunity to build significant savings. Short-term disability insurance provides a safety net, preventing financial strain if you’re unable to work temporarily.
4. Employer Coverage
Many residency programs offer group short-term disability insurance at no cost to the resident. These plans usually cover 60-66% of your salary for 3-6 months after a waiting period of around 30 days.
5. Transition to Work
Short-term disability insurance often includes rehabilitation benefits, helping you get back to work more smoothly and quickly after a medical condition.
6. Customizable Coverage
Individual short-term disability policies allow you to tailor coverage limits and benefit periods to your specific needs.
These policies are also portable, meaning they continue after your residency ends.
SEE ALSO: What to Know About Mental Health Coverage in Health Insurance Plans
Conclusion
Short-term disability insurance is essential for medical residents and interns. It provides financial protection if you can’t work due to illness or injury.
By ensuring that a portion of your income is replaced during times of illness or injury, this insurance allows you to maintain your standard of living and meet your financial obligations.
As you dedicate yourself to caring for others, make sure you also take steps to protect your own well-being and financial future with short-term disability insurance.
Review your options to ensure you have the coverage you need.