Doctor Disability Income Insurance 101

Protecting Your Most Valuable Asset—Your Ability to Earn

As a physician, you’ve invested years—likely over a decade—in education, training, and building a career. But what if an illness or injury made it impossible to practice medicine? Your ability to earn an income is your most valuable financial asset, and disability income insurance exists to protect it.

In this article, we’ll break down the essentials of disability insurance for doctors: what it is, why it matters, and how to choose the right coverage.

What Is Doctor Disability Income Insurance?

Disability income insurance provides monthly, tax-free income if you’re unable to work due to a qualifying illness or injury. For doctors, this coverage is crucial—not just because of high income potential, but because of how physically and mentally demanding the profession is.

Two key types:

Short-Term Disability (STD): Covers temporary disabilities, typically for 3–6 months.
Long-Term Disability (LTD): Kicks in after a waiting period (usually 90 days) and can pay until retirement age.

Why Doctors Need It

1. High Income at Risk

Even a few months without income can derail financial goals, especially with medical school debt, family expenses, or private practice overhead.

2. Specialty-Specific Skills

Most physicians work in highly specialized roles. A hand surgeon who can no longer operate may still be able to teach—but that’s a significant drop in income. That’s why “own-occupation” coverage is a must.

3. Self-Employed or Small Group Settings

Many physicians don’t have robust disability benefits through their employers. Even when group coverage exists, it may be insufficient or taxable.

Key Features to Look For

✅ Own-Occupation Definition

This ensures you’ll receive benefits if you can’t perform the duties of your medical specialty—even if you can work in another field or capacity.

✅ Residual or Partial Disability Rider

Allows you to receive partial benefits if you’re working part-time or earning less due to a disability.

✅ Future Increase Option

Gives you the ability to increase your coverage as your income grows, without undergoing new medical underwriting.

✅ Non-Cancelable and Guaranteed Renewable

The insurer can’t cancel your policy or raise rates as long as you pay your premiums.

How Much Coverage Do You Need?

Most carriers will cover up to 60–70% of your gross income. But for high earners, this may require stacking individual and group policies or adding supplemental coverage through a private insurer.

Typical monthly benefit ranges:

Residents/Fellows: $2,000 – $5,000
Practicing Physicians: $10,000 – $25,000+

When Should You Buy It?

The sooner, the better.Rates are lowest when you’re young and healthy. Many carriers offer discounted policies to residents and fellows, locking in lower premiums for the future.

Final Thoughts

Disability income insurance isn’t just a safety net—it’s a cornerstone of any financial plan for physicians. Without it, one unexpected event could compromise years of hard work and future earnings.

Whether you’re in training or an established practice, make sure your most valuable asset—your ability to earn—is protected.

Need Help Finding the Right Policy? BC specializes in helping physicians navigate their options and secure tailored disability coverage. Schedule a consultation today to get started.