Disability Insurance for Doctors

Many doctors understand the importance of income protection. However, they might not be familiar with the nuances in coverage and how these differences can impact what benefits they receive during a disability and whether they even qualify for benefits at all. Disability insurance for doctors is a specialized insurance product, so it’s important to take time to understand your coverage needs.

disability insurance for resident physicians

Why Doctors Need Disability Insurance Coverage

Paycheck protection makes good sense for anyone who depends on a paycheck. This includes most doctors. Even if you have built considerable savings for yourself over the years, your long-term financial plans likely depend on your continued ability to earn an income. If a disability prevents you from earning money, you may quickly drain your emergency savings and then possibly your retirement savings, and you may have to give up the lifestyle you’ve developed in order to keep your head above water. Disability insurance can prevent this scenario by replacing a percentage of your income if you become unable to work due to a disability.

Doctors are especially good candidates for disability insurance for a couple of key reasons.

First, most doctors have a lot of student loan debt, especially early on in their careers. The Education Data Initiative says that the average medical school graduate has $241,600 in total student loan debt. If a doctor becomes unable to practice medicine before paying off the loan, getting out of debt may be difficult.

Second, doctors are high income earners. According to the 2021 Physician Compensation Report from Doximity, the average compensation can vary depending on the specialty. A cardiologist, for example, can expect to earn an average of $537,777 a year, while a dermatologist can expect to earn an average of $476,263, a radiologist can expect to earn an average of $495,451. On the lower end of the scale, a pediatricians earn an average of $251,657, and endocrinologists earn $270,116 on average. Although some physicians can demand a higher wage based on their specialty, all doctors earn attractive salaries. This means that doctors can afford coverage. It also means they have an income worthy of protection.

The average medical school graduate owes $241,600 in total student loan debt.

In 2021 doctors earned between $251,657 and $537,777 in annual compensation depending on specialty.

Long Term Disability Insurance Options

Doctors often have access to multiple types of disability insurance.

Group short term disability insurance

Group short term disability insurance is designed to cover short periods of disability, for example, from a broken arm, moderate car crash or pregnancy. The benefit period is usually less than one year, and it may only be half a year or less.

Group long term disability insurance

Group long term disability insurance is designed to cover longer periods of disability. However, coverage is usually not portable, meaning you’ll lose it if you change jobs.

Individual disability insurance

Individual disability insurance is also designed to cover longer periods of disability. Coverage is portable, and you can customize your benefits to fit your needs and your budget.

Individual disability insurance tends to provide the most robust and flexible coverage. But what if your employer offers group short term disability coverage or group long term disability coverage? That’s great! It’s possible to own multiple disability insurance policies, so you can enroll in your group plans and still buy an individual disability policy to guarantee that you have the portable, customized coverage you need.

Disability Insurance Companies

Individual disability insurance for doctors is offered by different disability insurance companies. These disability insurance plans can vary, so it’s important to compare coverage options carefully. You should be looking at a lot more than just the premium when you buy disability insurance for physicians.

Here’s a checklist of the policy terms that you should consider when you compare disability insurance companies.

Definition of Disability

Policies can define disability differently. Common definitions include an any-occupation, own-occupation, true own-occupation or specialty specific definition.

Monthly Benefit

This is the disability benefit amount you can receive each month. It will usually be a percentage of your income with a monthly cap. A low monthly cap means that high income earners might receive a much smaller percentage of their income.

Benefit Period

This is how long you can continue to receive benefits if you experience a disability.

Waiting Period or Elimination Period

This is how long you have to wait before you can start receiving benefits.

Additional Riders

Various riders are available from different insurance companies. These riders can give you extra benefits, such as student loan repayment benefits, or give you the right to raise you benefit amount to keep up with your income without having to undergo additional medical underwriting, among other things. Riders are a great way to customize coverage.

Premium

The disability insurance cost is important to most policyholders. However, also consider how much disability insurance you’ll need if you ever experience a disability. You may be able to lower your costs by accepting a longer waiting period or going without additional riders, but make sure you’re getting the coverage your need.

How Disability Can Affect Your Ability to Practice Medicine

Doctors have stressful jobs. If you’re dealing with a disability, you may not be able to keep up with the demands of your job, and if that happens, your patients could be put at risk.

In addition to physical disability, such as cancer, heart disease and various other illnesses and injuries, you also need to consider how depression, anxiety and other mental health disorders could impact your ability to practice medicine safely and effectively. The CDC says that depression result in difficulty sleeping, making decision, remembering details or concentrating. According to the Association of American Medical Colleges, some doctors have avoided receiving mental health treatment despite experiencing mental health issues, and it’s often because they’re worried about licensing issues.

Physician disability insurance can give doctors breathing room so they can take care of their own health. However, the definition of disability used in a policy can make a big difference. For example, do you have to be totally disabled and incapable of performing any work?

Social Security Disability Insurance uses a very strict definition of disability, so you might not qualify for benefits if you don’t have a total disability. Individual disability policies, on the other hand, can use different definitions.

An any-occupation definition provides the least coverage – it will only kick in if a disability makes it impossible for you to work in any job that’s reasonably suitable for you.
An own-occupation definition of disability means you can collect benefits if you can work in your regular occupation, and a true own-occupation definition of disability allows you to continue receiving some benefits even if you accept a new job in a lower-paying field.
Specialty specific coverage provides coverage that focuses on whether the doctor can continue working in their chosen specialty, rather than just the medical field in general. Since some specialties pay much more than others, this can be important.

Disability Insurance for Your Specialty

Does your chosen specialty require a fast pace, steady hands or good vision? If a disability made you unable to practice in your specialty, you might still be able to work in another position in the medical field. Under some definitions of disability, this could mean that you’re not eligible for benefits. However, with specialty specific coverage, you know you can claim benefits if you’re ever unable to work in the specialty that you’ve trained for because of a disability.

As a doctor, you know how disability can turn people’s lives upside down. Protect your income with disability insurance for doctors.

Request a TruSpecialty quote today!

We offer specialty specific disability insurance for doctors in the following specialties, and more!

Allergy & Immunology
Anesthesiology
Dermatology
Emergency Medicine
Family Medicine
Internal Medicine
Medical Genetics & Genomics
Nuclear Medicine
Obstetrics and Gynecology

Ophthalmology
Otolaryngology
Pathology
Pediatrics
Physical Medicine & Rehabilitation
Preventative Medicine
Psychiatry & Neurology
Radiology
Urology