Don’t Fall for Misinformation Online
I have seen reputable online sources spread complete misinformation about guaranteed standard issue (GSI) disability insurance. Places where you would expect to receive unbiased information in your interest, yet that tells you to jeopardize your entire financial future.
I’ve seen Reddit posts saying that buying GSI is more expensive… It is not. I’ve seen other major vendors say that GSI may not always be the appropriate decision. Every week, somebody calls me to discuss other experienced insurance agents who likely knew a GSI was available, and submitted an application with another company anyway. That act makes you ineligible for the GSI offer, which is your one and only chance to get medical-specialty own-occupation disability insurance with no pre-existing condition exclusions, extra ratings, or even being declined.
Why GSI Disability Insurance Is Likely The Correct Decision
You are a physician, and I am not going to pretend to know more about how an illness can affect the human body than you. What I am willing to assume is that you have never read every word in your current medical records from every physician, counselor, chiropractor, or clinic you have visited.
I also assume you have absolutely no idea how a disability insurance underwriter views the notes in those records. A simple comment about stress at work means nothing to you, but it means everything to a disability insurance underwriter reviewing your application. You could theoretically go out on a mental and nervous claim immediately because of the stress at work. You may have visited a chiropractor because your back was sore and thought nothing of it, but the chiropractor may have written down a degenerative condition in your medical records so the insurance company would pay for your visit. That would also most likely result in a permanent back exclusion on your disability insurance policy.
One of the MAJOR rules for GSI is that you must apply with the insurance company offering the guaranteed standard issue offer first. You may notice I did not say, “Why Guardian GSI disability insurance is always the right answer.” If you are at a hospital that offers GSI disability insurance from another company, but not from Guardian, I do believe you should apply with that carrier.
When a GSI offer is available to trainees at your hospital, it is probably worth considering before applying for a fully underwritten policy. Not every hospital has a GSI disability insurance offer, but you should do your research to see if one exists before ever applying to a company that is fully underwritten. There are many smaller GME programs where trainees do not have a GSI offer, but most larger teaching hospitals do. Please don’t gamble with your ability to have disability income insurance protection in the future.
This could be your one and only chance to secure a high-quality medical-specialty own-occupation disability insurance policy with no exclusions, ratings, or chance of being declined. But if you apply to another company first, you lose that eligibility. It is simply never worth the risk of getting declined or having a pre-ex exclusion rider for the rest of your career over a small premium difference.
The Way Other Agents Justify Their Actions
I have heard other insurance agents, usually those who do not have access to offer the guaranteed issue offer because they have not earned it, justify selling against a GSI by saying something like, “I do an excellent job of pre-screening my clients.” They may ask you a bunch of medical history questions for them to justify their actions to themselves. If they “think” you are perfectly healthy, maybe it helps them sleep better at night; there may have been more appropriate options. This is your one chance to know you will have complete coverage for anything in your medical history; it’s never worth it not to consider the guaranteed issue offer.
They know they have absolutely no idea what is written down in your medical records. Just because you tell them you are healthy does not mean either you or your agent has any idea what is written in your medical records, or how a DI underwriter will interpret that information. If they have any experience in the disability insurance marketplace, they have seen plenty of unexpected pre-existing condition exclusions or outright declines for things like:
- Migraines
- Musculoskeletal issues
- Forearms, Wrists, Hands
- ADHD, Depression, Anxiety
- Pregnancy complications
- Skin
- Eyes
My Opinion
While I do believe Guardian offers the most comprehensive disability insurance protection for a physician, the differences in coverage between Guardian and other major insurance companies are not enough to ever justify applying for a fully underwritten policy when a Guaranteed-Issue disability insurance offer is available. Again, this lesson applies regardless of what company is offering the GSI. At the time this article was written, you would need to apply to a company other than Guardian at a hospital like the University of Michigan. Here is a large list of Guardian GSI disability insurance offers nationwide.
The information provided reflects the author’s views and may not be those of Guardian. This material is for general informational purposes only and should not be construed as a recommendation. Financial decisions should be made in consultation with a qualified financial professional. Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.
