Key Takeaways:
- Physician disability insurance should be a top priority for young residents and doctors, especially those who have a family relying on their specialty income.
- Invasive medical specialties will pay more for disability coverage as they’re more likely to file a disability claim.
- Premium discounts are available through SLP Insurance or we’ll guide you to a more affordable policy elsewhere.
Anyone can experience a serious injury or illness. But the nature of your work as a physician means that a simple car accident or mobility issue could alter or end your medical career without notice. If you’re not financially independent, having adequate physician disability insurance is a must.
Even if you have disability coverage through your hospital or clinic, an individual policy can provide you with better income protection. They’re portable and have stronger definitions of disability that are specific to your medical specialty.
Here’s what to expect for physician disability insurance, including cost estimates and what your policy should include.
How much does physician disability insurance cost?
Your disability insurance premiums will depend on a number of factors, including your age, gender, medical history and occupation. As a general rule of thumb, you can expect to pay more for coverage if you’re older, a female or in a medical specialty that has a high-risk of disability. That said, you might pay anywhere from 2% to 4% of your income for own-occupation disability insurance.
Let’s look at what a resident surgeon might pay compared to a resident pediatrician.
Trauma Surgeon vs. Pediatrician Disability Insurance Monthly Cost (Age 34, Resident / Fellow) | ||||
*NOTE: True own-occupation definition, $5,000 base monthly benefit, $15,000 future increase benefit, residual/recovery and mental/nervous coverage added. 3% inflation rider. Ninety-day elimination period. Includes 10%-30% discounts available through SLP Insurance LLC.
Surgeons will pay higher premiums than pediatricians due to historical claims data that shows they’re at a higher risk of filing a disability claim.
Women are also more likely to file a disability claim, which unfortunately drives up premiums for female physicians. This is partly attributable to the fact that women experience a myriad of health risks during pregnancy, delivery and postpartum.
Fortunately, some insurance companies offer unisex discounts, which can reduce the premium down to a gender-neutral rate. Additionally, if you purchase a policy within six months of finishing training, you can often obtain significant discounts on your premium.
Why physicians need disability insurance
If you become disabled during your medical career, disability insurance will pay out a set amount each month until you recover from your disability or until you reach retirement age.
This is a huge benefit, especially if you have a family depending on you as their main source of income. In this case, disability insurance is essential to their financial security as well as yours.
Most physicians purchase optional riders on their policy so they can buy more as their income increases. You can also purchase a rider for inflation protection so that your policy benefits maintain the same purchasing power.
You might scoff at having a policy in force until you’re 65 years old. However, the biggest risk and the cheapest cost is at the beginning of your career. Disability insurance is a great product to buy for the first few years of your career while you’re building wealth. Once you have substantial assets, you can reduce the benefit or eliminate some of the optional riders to save money. Once you’re financially free, you can cancel it entirely.
SLP Insurance can hunt down the best disability insurance discounts for your situation, making own-occupation physician disability insurance more affordable. Fill out the quote form below to get started.