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Disability insurance: protect the paycheck

2 min read

Your future earnings are your largest asset. An own-occupation disability policy bought in training protects them at the lowest lifetime cost.

THE IDEA

A physician who cannot work loses not one paycheck but a career of them — future earnings are the largest asset most trainees own. Disability insurance replaces part of your income if illness or injury stops you working. The definition that matters is own-occupation: the policy pays if you cannot perform the duties of your specialty, not merely any job. Employer group long-term disability is a start, but it is often capped at levels far below a physician's income and may be taxable if the employer pays the premium.

~60%typical benefit target of pre-disability income
90 dayscommon elimination (waiting) period
65–67typical age benefits run to

Residency is the buying window: younger and healthier means lower premiums and easier underwriting, and you lock in insurability before anything changes. Prioritize three riders: a future increase option (raise coverage as income grows, no new medical exam), non-cancelable and guaranteed renewable language (the insurer cannot raise your rates or cancel), and a cost-of-living adjustment. Buy from an independent agent who works with physicians, compare at least two carriers, and coordinate the individual policy with any group coverage rather than duplicating it.

Specialty-specific language mattersA policy that pays only if you cannot work any occupation is far weaker for a surgeon than an own-occupation policy tied to your specialty. Read the definition of disability before anything else.

Your next steps

  1. Find your current group long-term disability benefit, cap, and definition of disability.
  2. Get quotes from at least two carriers through an independent agent experienced with physicians.
  3. Confirm the policy uses own-occupation language specific to your specialty.
  4. Add the future increase option and non-cancelable, guaranteed-renewable terms.

Check your understanding

Select each question to reveal the answer.

✓ Inability to perform the duties of your own specialty.
✓ Younger and healthier means lower premiums and locked-in insurability.
✓ Lets you raise coverage as income grows without a new medical exam.
✓ The waiting period — commonly 90 days — before benefits begin.

Planning questions

  1. What disability coverage do you have today, and what is its definition of disability?
  2. Which riders would you prioritize, and what monthly benefit would cover your essential expenses?

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