Guaranteed Standard Issue (GSI) Disability Insurance: What Is It and Who Qualifies

Guaranteed standard issue (GSI) disability insurance helps protect the future income of medical residents and fellows. It provides guaranteed coverage, and in some cases, better premiums. But your eligibility for GSI disability insurance depends on your residency or fellowship program.

Here’s what you need to know about GSI disability insurance, including who’s eligible and where to find coverage.

What is guaranteed standard issue disability insurance?

Guaranteed standard issue disability insurance offers guaranteed coverage without exclusions in partnership with certain employers, such as medical schools and hospitals. This type of policy allows young medical fellows and residents to protect future earnings at a discounted rate without a health screening or medical examination.

You might benefit from a GSI policy if:

1. You’re a (resident/fellow) physician with a pre-existing medical condition. This might include but isn’t limited to certain medication use, disabilities due to mental or nervous disorders, and previous injuries.
2. You’re a female physician. Women can pay up to 35% more for disability insurance. So, a GSI policy can provide deep discounts for female physicians.

That said, you might find better coverage or pricing if you’re in good health, as many individual policies provide unisex discounts.

GSI disability insurance eligibility

This exclusive underwriting program is available through most major residency and fellowship programs nationwide — but not all.

Here’s a small sample of residency GSI programs:

• Albany Medical College
• Children’s National Hospital
• George Washington University
• John Hopkins University

Many more GSI programs are available depending on where you’re completing your residency or fellowship. Each one has its own rates, discounts and coverage specifics.

Additionally, you can’t have already applied or been denied coverage with another insurance carrier. If so, you might unintentionally risk losing your eligibility for your GSI program. Weigh your options for a GSI policy along with individual insurance policies before applying anywhere.

Related: Don’t Miss These Residency and Fellowship Training Discounts: How to Save Money on Disability Insurance

Pros and cons of GSI disability insurance

Pros

• Unisex rates. A GSI policy can provide significant savings for women due to unisex program discounts. Unfortunately, many unisex-rated GSI plans are scheduled to end soon, so women should act fast to take advantage of these savings.
• No medical underwriting. If you have a pre-existing medical condition, you might have limited options for disability coverage. A GSI policy can provide guaranteed coverage without a medical exam.
• Strong definition of disability. GSI policies are specialty-specific, so your disability coverage is based on your own occupation.
• Portable insurance plan. As long as you continue to pay premiums, you won’t lose coverage when you change employers throughout your career.
• High-risk lifestyle activities are generally covered. This might include mountain or rock climbing, racing, scuba diving, skydiving and more.

Cons

• The maximum amount of coverage is usually capped at $10,000 per month. Depending on your medical specialty, this amount isn’t enough to protect your high income sufficiently. In this case, you’d want to look into a supplemental individual policy to fill the gap.
• Benefits for pre-existing conditions might have a waiting period. If so, it’s usually at least one year. However, any new injury or illness in the first year will still be eligible for benefits.
• Coverage might not be available if you’ve applied or been denied elsewhere. In most cases, insurance companies aren’t willing to assume the risk if you’ve already been denied with another carrier. 
• GSI rates aren’t always the least expensive option. Healthy males might find better coverage or pricing with an individual policy. Additionally, many individual policies offer unisex discounts for females.

GSI disability insurance vs. traditional disability insurance

Aside from GSI programs, the most common types of long-term disability insurance include individual and group coverage.

Individual disability insurance offers the most flexibility, allowing you to tailor your policy to fit your needs. This includes having control of your premiums, the definition of disability and policy riders. However, because of this, it’s often more expensive than group long-term disability coverage. Additionally, the underwriting process requires a medical exam or health screening.

But group disability plans usually come with limitations. For example, you might have capped monthly benefits or a weak definition of disability, making it harder to file a claim. This type of coverage is often employer-provided at no-cost or available through professional associations at a discounted rate. However, your rates can change over time, and the policy might not be portable.

What to consider when shopping for disability insurance policy

If you have access to a GSI program, you’ll want to compare the policy to other insurance options. Here are some things to consider:

• How does the policy define disability? Given your education investment and high income, an own-occupation definition of disability is the best route for physicians. You can file a disability claim if you’re unable to perform the “substantial duties” of your specialty versus needing to be unable to work entirely.
• What are the coverage and benefit amounts? Most insurance companies will allow you to buy a policy equal to 60% of your gross income. But you might have a capped maximum (e.g., $5,000 to $10,000) if your coverage is through a GSI program or group plan.
• What is the policy’s benefit period? This is how long you’ll receive disability benefits. Benefit periods usually range up until the traditional retirement age of 67.
• How long is the elimination period? The elimination period determines how long you need to be unable to work before being eligible for disability benefits. The standard waiting period is 90 days, but policies are available ranging from 30 days to one year.
• What policy riders are available? Disability insurance riders can change your level of coverage significantly. As a resident or fellow, you want to include a future option rider. That way, you can purchase additional coverage without a medical exam later in your career.

Keep in mind that you might jeopardize your eligibility for a GSI policy if you apply elsewhere. The last thing you want to do is lose access to guaranteed coverage if you have a pre-existing condition.

GSI plans aren’t always advertised or promoted at your medical school or hospital. Plus, many inexperienced insurance agents will steer residents and fellows to an individual policy that isn’t in their best interest. So, it’s best to contact an independent insurance broker to learn about the insurance options specifically available to you.

Where to find GSI disability insurance

For the most part, GSI programs are ideal for physicians with pre-existing medical conditions and female physicians. However, an individual disability insurance policy might still be necessary to supplement your coverage.

SLP Insurance has access to various discounts to help reduce premiums for both male and female residents and fellows. We also have access to about 50 GSI programs nationwide and will search those disability insurance programs to ensure you’re applying for the best insurance opportunity based on your unique situation. 

Fill out the form below to receive a custom quote for own-occupation coverage, including if a GSI policy is available to you.