Guardian Life Insurance of America introduced a new, and first of its kind, insurance program for medical and dental professionals. The program is set up to protect professional’s ability to repay student loans, in the event they become disabled.
The Student Loan Protection Program uses the company’s Business Reducing Term policy, which is specifically designed to fund such financial obligations. The program will insure 100% of the monthly loan payments (maximum o $2,000), in the event that the insured doctor or dentist becomes disabled, according to a press release from The Guardian Life Insurance Company on February 22.
Clients have requested such a program and Guardian is the first to offer any protection of its kind. “These professionals see how an unexpected illness or injury can threaten a person’s financial well-being every day, so they’re acutely aware of it,” said the Vice President of Product Strategy at Berkshire Life Insurance Company of America, Lawrence Hazzard.
The Student Loan Protection Program provides more that peace of mind, it provides financial protection in the event of a disability, something that could otherwise be disastrous to both the insured and their families. The average debt load is about $140,000 for medical school graduates and $186,000 for public dental school graduates ($205,000 for private schools), according to a 2008 survey by the Association of American Medical Colleges. Amounts not previously covered by individual disability policies. This is a win-win for for both the loan holders and the lending institutions.
