I never used to think much about disability insurance. Like many healthcare professionals, I assumed I’d always be able to work. But after seeing colleagues sidelined by unexpected injuries and illnesses, I realized how fragile our careers can be. We spend years training, sacrificing time and money, yet one accident could take it all away. That’s when I asked myself: Is disability insurance worth it? The answer became clear because protecting my income meant protecting my future. If you rely on your clinical skills to earn a living, you need to know what’s at stake. Let’s break it down.

Why Healthcare Workers Need Disability Insurance

Most people think of disabilities as freak accidents such as car crashes, falls, that one patient who somehow manages to hit you in the face mid-exam. But in reality, long-term disabilities are more likely to come from things like back injuries, chronic illnesses, or even mental health struggles.

And in healthcare, you need your body and your brain to work. If you’re a surgeon and your hands start shaking, your career is over. If you’re a nurse with severe joint pain, how are you supposed to lift patients? Even something like burnout or PTSD can make it impossible to keep up with the daily grind.

Switching careers isn’t exactly easy either. You can’t just pivot to a desk job after years of medical training. If something takes you out of practice, you could be looking at a serious financial crisis.

What Kind of Disability Insurance Do You Need?

Not all policies are created equal. Some protect you fully. Others have sneaky loopholes that leave you hanging when you need help the most.

Short-Term vs. Long-Term Disability

Short-term disability covers you for a few months. Helpful if you need time to recover from surgery or a temporary condition, but useless if you’re out of work for years. That’s why long-term disability insurance is what really matters.

Own-Occupation vs. Any-Occupation

This one’s huge. Own-occupation insurance pays out if you can’t do your specific job. So, if a surgeon loses fine motor control, they still get benefits even if they could technically work as a medical consultant.

Any-occupation coverage is way stricter. It only pays if you can’t work any job at all. So, if you can sit at a desk and answer phones, the insurance company might say, “You’re fine, no payout for you.” Not exactly reassuring.

For healthcare workers, own-occupation coverage is a must.

Employer vs. Private Coverage

A lot of hospitals and clinics offer disability insurance as part of their benefits package. That’s great except employer plans often cover only a fraction of your salary, and they don’t follow you if you switch jobs. A friend of mine thought their hospital’s disability coverage had them covered until he actually needed it. Turns out, it only replaced 50% of his salary, and it didn’t include bonuses or overtime. When he realized he’d be bringing in less than half of what he was used to, panic set in.

A private policy gives you more control. It sticks with you no matter where you work, and it usually provides better benefits. If you’re serious about protecting your income, relying only on an employer plan isn’t the best strategy.

How Much Coverage Should You Get?

The sweet spot is usually 60–70% of your income. Enough to cover your bills, student loans, and the essentials without leaving you scrambling.

If you’ve got a big emergency fund, you might be able to get away with a policy that has a longer waiting period before benefits kick in. But if you’re still paying off student loan debt (so… most of us), you’ll probably want something that starts sooner.

How Much Does It Cost?

It depends. Age, medical history, and job type all affect pricing. Physicians in high-risk specialties (looking at you, surgeons and anesthesiologists) tend to pay more. Women also face higher premiums because, statistically, they file more claims. Fair? No. Reality? Yes. Expect to spend 1–4% of your annual salary. Sounds like a lot, but compare that to losing all of your income for months—or years.

I remember thinking to myself: “is disability insurance worth it?” It felt like just another monthly expense when I could be siphoning into my next travels. But then I did the math of what would happen if I suddenly had no income for a year? The reality hit hard. A small monthly premium felt a lot more reasonable compared to losing everything I’d worked for.

Mistakes That Could Cost You

A lot of healthcare workers make the same mistakes when it comes to disability insurance. I kept putting off buying disability insurance after residency. I was young, healthy, and busy so I figured I had time. Then one day, I tweaked my back helping a patient, and suddenly, I wasn’t sure if I’d qualify for a good policy anymore. That’s when I realized how quickly things can change. Here are a few big ones:

• Thinking employer coverage is enough – It usually isn’t.
• Picking any-occupation coverage – This can leave you without benefits when you need them most.
• Buying too little coverage – If your policy doesn’t replace most of your salary, it won’t do much good.
• Waiting too long to get insured – Policies get more expensive as you age. Develop health issues? You might not qualify at all.

What to Look for in a Good Policy

Not every policy is worth the money. A good one should:

• Be non-cancelable—so the insurer can’t raise rates or change terms.
• Offer own-occupation coverage—so you’re protected if you can’t do your specific job.
• Be from a trusted company—so you don’t get stuck fighting for benefits later.
• Include cost-of-living adjustments—so inflation doesn’t eat away at your payouts over time.

Bottom Line

For most healthcare workers, absolutely. It’s the financial safety net you hope you never need but will be really glad to have if you do. No one expects to develop a chronic illness or suffer an injury, but it happens. And if losing your paycheck would put you in a bad spot, disability insurance isn’t just optional but now necessary.

The best time to get coverage? Before you need it. If you’re not sure where to start, talk to a financial expert who understands the unique risks in medicine. It’s one of the smartest investments you can make in your future.