I’ve spent years training to be a physician, and I know firsthand how much we rely on our ability to work. Our income supports our families, pays off student loans, and funds retirement. But what happens if we can’t practice medicine due to illness or injury? Physician disability insurance isn’t just another expense. It’s the safety net that protects everything we’ve worked for. I’ve seen colleagues face unexpected health issues that ended their careers overnight. Without the right coverage, their financial future crumbled. Let’s talk about why this insurance matters and how to make sure you’re fully protected.

Types of Physician Disability Insurance

Not all physician disability insurance works the same way. Short-term policies cover you for a few months, while long-term plans last for years, sometimes even until retirement. As a physician, long-term coverage is what really matters.

The policy’s definition of disability is key. An own-occupation policy pays if you can’t work in your specific medical specialty, even if you could do another job. An any-occupation policy only pays if you’re unable to work at all. For doctors, own-occupation coverage is the better choice. No one wants to spend years training in neurosurgery only to be told they should work as a consultant instead.

Employer-provided disability insurance can be helpful, but it has limits. These group policies usually offer lower payouts and can disappear if you switch jobs. Individual policies, while more expensive, provide better protection and stay with you no matter where you work.

What to Look for in a Policy

A good policy should include:

• Own-occupation coverage because anything less isn’t enough for physicians.
• Benefit amount that replaces at least 60% of your income so you can actually pay your bills.
• Payout period that lasts as long as possible, ideally until retirement.
• Waiting period before benefits kick in, usually 90 days.
• Partial disability coverage in case you can still work but not at full capacity.
• Inflation protection so your benefits keep pace with rising costs.
• Future increase option so you can add coverage as your income grows.

How Much Coverage Do You Need?

A good starting point is 60% of your current income, but that’s not a hard rule. Think about your lifestyle, debt (especially student loans), and long-term financial goals. If you have a mortgage or a family depending on your income, you may need more. A broker who specializes in physician disability insurance can help fine-tune the numbers.

What Does It Cost?

Premiums vary based on factors like age, health, specialty, and policy features. Younger, healthier physicians get lower rates. High-risk specialties, like surgery, tend to pay more. Women also face higher premiums because they file more disability claims. Unfair? Maybe, but that’s how the industry calculates risk.

Riders, or policy add-ons, can raise costs but offer valuable benefits. Features like inflation protection or future increase options are often worth it. Also, consider how your policy is taxed. If you pay premiums with after-tax dollars, your benefits are tax-free. Employer-paid policies usually mean taxable benefits.

Common Mistakes to Avoid

Many doctors assume their employer’s disability coverage is enough. It usually isn’t. These policies often lack own-occupation protection, and if you change jobs, you could lose coverage completely.

Another mistake is choosing a policy just because it’s cheap. The lowest-cost option might not cover you well enough when you actually need it. And as your career progresses, your income will grow. Your policy should keep up. Regular reviews help ensure you’re always covered.

When to Get Physician Disability Insurance

The best time to buy is when you’re young and healthy. Premiums go up with age, and pre-existing conditions can limit coverage. Many physicians lock in lower rates during residency or fellowship.

It’s also a good idea to review your policy after major life changes. Starting an attending job, getting married, buying a home, or seeing a big jump in income are all good times to reassess your coverage. As your career evolves, your insurance should too.

How to Get Physician Disability Insurance

The process is simple. Get quotes from multiple providers, apply, and in some cases, take a medical exam. Read the fine print before signing anything. A broker can guide you through the process and help you get the best deal.

Bottom Line

Physician disability insurance isn’t just another expense. It’s financial protection for your future. The right policy ensures that if something happens, your income doesn’t disappear overnight. Don’t wait until you need it. Get covered now, and make sure your policy keeps up with your career.