Because of the high cost of medical school and the years of training that physicians invest in their careers, disability insurance is especially important for doctors.
The right disability insurance policy can protect your income if you’re hurt or sick and can no longer practice medicine. Say you’re a surgeon and you’re in a car accident that injures your right hand — disability insurance can pay out while you’re recovering, so you don’t need to rely on your savings
Why doctors need disability insurance
If an unexpected accident or injury leaves you unable to work as a doctor, disability insurance means you can keep up with your expenses (including med school loan payments) without using up your savings.
Long-term disability insurance offers the most protection, and it can pay out for decades, even if you can never work as a physician again. It will cover you in case of things like:
An injury from an accident or fall
Complications from pregnancy or childbirth
Severe anxiety or depression
Cancer or another serious illness
You can use your disability benefits the same way you use your regular paycheck — so on anything you need, whether it’s mortgage or med school payments, childcare, groceries, or travel.
What is the best type of disability insurance for doctors?
The best disability insurance for doctors is a long-term, true own-occupation disability policy.
Long-term disability insurance can cover you for years or even decades, and true own-occupation means that you’ll still get paid benefits for as long as your injury or illness keeps you from going back to practicing medicine in the same role, even if you’re able to work a different job.
Let’s say you’re a neurosurgeon and you develop a tremor that means you can no longer operate. A true own-occupation policy will still pay out even if you’re able to go back to work in a different job, like teaching or consulting.
What is the best type of disability insurance for residents?
If you’re still in residency, we recommend a long-term own-occupation policy with a future increase rider.
Even though you haven’t reached your full earning potential yet, there are some perks to getting disability insurance while you’re in residency (or even in medical school). Buying disability coverage early means you can:
Protect part of your future income
Still pay back loans if you become disabled before finishing your program
Lock in coverage early when rates are better
Update your coverage later once you start earning more
Doctors are one of the few professions that disability insurance companies will allow to over-insure, meaning you can get more coverage than you’re making now, with the assumption that your income will increase as your career progresses.
What if you already have disability insurance through work?
You may already get disability insurance through your job at a clinic or hospital. Employer-sponsored disability insurance, also called group insurance, is definitely worth getting, especially since it’s usually partially or fully paid for by your employer. But you should still get your own personal long-term disability policy, since employer-sponsored coverage isn’t enough protection on its own.
Most work-provided disability insurance is short-term, meaning you’ll only get benefits for up to a year — a problem if your illness or injury is career-ending. It’s also tied to your current employer, while a personal disability insurance policy is yours for as long as you want it.
Group disability benefits are also usually paid for with pre-tax dollars, which means that any benefits you get later on if you have to actually file a claim will be taxed.
→ Read more about supplemental disability insurance
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 is disability insurance 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 |
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:
BBB rating | A.M. Best rating | What we like about it … | |
---|---|---|---|
A+ | A | Includes a survivor benefit for your beneficiary. | |
A+ | AA+ | Offers lifetime continuous benefits for total disabilities, even after the policy expires. | |
A | A++ | Offers a future insurability rider that's good until your 60th birthday. | |
A+ | A+ | Offers a lump-sum payment of $62,400 in addition to regular benefits if you're presumptively disabled. | |
A+ | A | Includes a family care benefit if you have to take time off to care for a sick loved one. |
How to get disability insurance for doctors
No matter what kind o physician, surgeon, or medical professional you are, you can get disability insurance in seven simple steps: