Disability insurance for doctors

It’s particularly important to have disability insurance if you’re a doctor. Disability insurance is like insurance for your income: it replaces your earnings if you’re injured or sick and need to take time off practicing medicine.

You may already have disability insurance through work, but any benefits you get from this kind of coverage will probably only last up to a year at the most. A private, long-term policy with own-occupation coverage is a better option because the coverage can last for decades, depending on the policy.

Why doctors need disability insurance

Without a good disability insurance policy, you risk losing your income, savings, and the investment you made in your medical education if an unexpected injury or illness leaves you unable to practice medicine.

Your best bet for protecting your income over your entire career as a physician is long-term, own-occupation disability insurance. This kind of disability insurance policy can pay out benefits for years, potentially replacing millions of dollars in future income. With own-occupation coverage, you can collect benefits if you can’t do your specific job, meaning you can still collect benefits if you’re able to work, as long as it’s not in the same role you had when you bought the coverage.

You can use your disability benefits the same way you use your regular paycheck — so on anything you need, whether it’s mortgage or medical school payments, childcare, groceries, or travel.

Disability insurance covers absences for most types of serious injuries or illnesses, including:

• Severe anxiety or depression

• An injury from an accident or fall

• Complications from pregnancy or childbirth

• Nerve damage

• Cancer or another serious illness

What if you already have disability insurance through work?

You may already get disability insurance through your job at a clinic or hospital. This kind of disability insurance is called group insurance and it’s usually optional but definitely worth getting, especially since it’s usually partially or fully paid for by your employer.

That said, it’s probably a mistake to rely on this type of insurance by itself. Most employers only offer short-term disability insurance, which pays out for up to a year — a problem if your illness or injury is career-ending. These types of plans are often paid for with pre-tax dollars and, because of this, any future payouts you get can be taxed.

Disability insurance riders for doctors

There are a few important disability insurance riders (extra coverage options) that doctors should consider.

• Cost of living adjustment (COLA): Automatically increases your monthly benefit every year to keep up with inflation. 

• Future increase rider: Lets you purchase more coverage up to a certain age without having to go through another medical exam — useful if you expect your income to go up significantly.

• Non-cancelable/guaranteed premiums: Guarantees coverage and the same premiums as long as you continue to make payments on time.

• Partial disability benefit: Pays out if you’re not fully disabled, but still lose some income because of an injury or illness.

• Retirement protection: Replaces the regular retirement contributions you would have made while you were working.

• Student loan rider: Sets aside extra money to continue making your med school payments while you’re disabled and can’t work.

How much does disability insurance cost for doctors?

Disability insurance generally costs about 1% to 3% of your annual income. 

Depending on the type of medicine you practice and how much you make, that means you can reasonably expect to pay anywhere from $165 to $885 a month for long-term disability coverage — although your actual rates will also depend on your age, health, and lifestyle

Disability insurance cost by medical speciality:

Medical speciality	Cost of long-term disability insurance
Anesthesiologists	$276 to $828
Cardiologists	$295 to $885
Dermatologists	$252 to $757
Emergency medicine physicians	$259 to $777
Family medicine physicians	$197 to $590
General internal medicine physicians	$202 to $605
Neurologists	$223 to $669
Obstetricians and gynecologists	$247 to $741
Ophthalmologists	$225 to $675
Orthopedic surgeons	$255 to $766
Pediatric surgeons	$242 to $726
Pediatricians	$165 to $496
Physicians, all other	$193 to $579
Physicians, pathologists	$223 to $668
Psychiatrists	$208 to $624
Radiologists	$251 to $754
Surgeons, all other	$248 to $745

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Source: Rates are based on the most recent average salaries for physicians and surgeons, published by the Bureau of Labor Statistics.

Are graded premiums a good idea for doctors?

Graded premiums mean that you don’t have to commit to paying one set rate for your disability insurance policy. Graded premiums start low and get higher over time, while level premiums stay the same as long as you own the policy.

Graded premiums can allow residents on a tight budget to get disability insurance, but level premiums are better for people who can afford to lock them in, since disability insurance gets more expensive with age.

Best disability insurance companies for doctors

When it comes to the best disability insurance providers, doctors should consider companies that have experience working with high earners. These companies are most likely to have useful coverage options for doctors (like riders for cost of living adjustments, future increase, and retirement protection).

Some of the best disability insurance companies for doctors are:

How to get disability insurance for doctors

No matter what kind of physician, surgeon, or medical professional you are, you can get disability insurance in seven simple steps: