Guide to Disability Insurance for Physicians

Jenny Handwerk |

Guide to Disability Insurance for Physicians

You've made a significant investment in your profession, and your distinct qualities are your most valuable financial asset for earning a living. In contrast to other professional jobs, an accident or illness can hurt your capacity to execute your job. That is why it is critical to have adequate disability coverage in case the unexpected occurs and you cannot perform the work you enjoy.

Perhaps your work already provides disability insurance, but do you understand what it covers? Disability insurance, like medicine, is a complex topic with much to discuss, but we're here to help. Above all, you must ensure that your disability insurance coverage is tailored to you to cover the precise medicine you were educated and prepared to practice.

What Is Disability Insurance?

Income protection is provided via disability insurance. It will pay a portion of your income if you are unable to work owing to a long-term illness, a devastating injury, or cognitive difficulties. You will receive a monthly payment when your coverage is activated due to a medical occurrence. If you become disabled, long-term disability insurance coverage will pay you a certain amount each month until you recover or reach the age of 65-67.  

Disability insurance exists so you can care for yourself and your family. Disability insurance would assist you pay your bills and maintain your level of life with the least amount of financial disturbance feasible if you were unable to pursue the profession for which you were educated and trained. It offers financial stability to you and your family at a time when money should be the least of your concerns.

Disability insurance, like all types of insurance, may be pretty complicated. Several different policies are available, each with varying levels of coverage and waiting periods.


Types of Disability Insurance 

Long-Term Disability Insurance

Long-term disability insurance is one of the most comprehensive insurance policies available. It provides long-term disability compensation, as the name implies. Depending on your policy, your benefit period could be five, ten, or as many years as it takes you to reach retirement age.

Short-Term Disability Insurance 

A short-term disability policy often begins paying as soon as you become disabled and continues for a maximum of 3-24 months. These plans are frequently provided as employee benefits by employers. While short-term incapacity is inconvenient, it is not usually a financial disaster for a physician investing in retirement with an emergency fund. As a result, many doctors do not purchase short-term disability insurance.

Social Security Disability Insurance

The federal government manages Social Security disability insurance. You can collect if you have worked for at least ten years in positions where you paid social security taxes.

However, this does not guarantee that you will be authorized for monthly benefits. To be eligible, you must meet the Social Security Administration's definition of disability. You must be incapacitated in a "severe" way that stops you from working in your current job and prevents you from working in another job. Lifting, standing, sitting, and walking must be impossible because of your condition.


Mortgage Disability Insurance

Mortgage payments can run into the thousands of dollars every month. And, if you're a doctor with a large mortgage to pay, mortgage disability insurance provides an extra degree of security. Most insurance will cover your mortgage payments for one to two years if you become ill or disabled. In some situations, it will even pay off your mortgage balance if you die.

Insurance Cost of  Coverage 

The price, or premium, of an individual physician disability income insurance policy is an important consideration. The insured's age, gender, monthly benefit, waiting time, optional riders, and occupational classification influence premium prices.

In general, the younger the physician, the lesser the cost. Policies with more specific disability definitions are more expensive than those with a broader definition, such as any occupation definition.  Additional factors, such as the type of policy selected, can affect the policy's price. Like the ones listed below:

- Group coverage
- Individual plans
- Association plans


When Is the Best Time to Apply for a Physician to Apply for Disability Insurance?

Because there is no defined enrollment period for physician disability insurance, the ideal time to sign up is always now. It is always possible to invest in your financial security.

If you need assistance choosing the right insurance, do not hesitate to contact us. We are more than glad to help you during the process.