Disability insurance is one of the most important financial tools for physicians and medical professionals. Use this checklist to ensure you’re choosing the right coverage.
How much of your income would you need to replace if you couldn’t work?
What are your fixed expenses (mortgage, student loans, lifestyle costs)?
Does your employer offer disability insurance? If so, does it cover your specialty?
Own-Occupation Definition – Ensures you receive benefits if you can’t perform the duties of your medical specialty.
Residual Disability – Provides partial benefits if you can still work but at a reduced capacity.
Future Purchase Option – Allows you to increase coverage as your income grows, without medical underwriting.
Cost-of-Living Adjustment (COLA) – Ensures benefits keep up with inflation.
Own-Occupation Coverage – Many employer policies use a stricter definition that may not cover your specialty.
Portability – Employer coverage usually ends if you leave your job, whereas private policies stay with you.
Tax Treatment – Benefits from employer-paid policies are typically taxable, while private policy benefits are tax-free if premiums are paid with after-tax dollars.
Customizability – Private policies allow for additional riders (e.g., cost-of-living adjustments, residual benefits, future purchase options) that may not be available in group plans.
🔹 Pro Tip: Employer-provided coverage is a great starting point, but a private policy ensures full protection.
Does the policy have strict exclusions that could prevent you from qualifying for benefits?
Are benefits reduced if you receive income from other sources?
Have you locked in a low premium rate by securing coverage early?