Disability for Doctors

There is no such thing as "one size fits all" for  insurance coverage. Depending on your speciality, there are specifics to each Disability Contract and it varies with the individual Disability Companies and their coverages. More importantly, factors such as health, your earned income and your lifestyle all factor in when getting an individual Disability Policy.

What is the most valuable asset that you have? Quite frankly it is the ability to earn a living. And if something was to happen to you, the hospital wouldn't pay you on a long term basis if you were unable to work. While you are working, you will get paid. When you are not working, a disability policy, if purchased before you became sick or hurt, will provide you with a monthly benefit. You should ensure that your financial needs are adequately covered, and properly secured as your practice develops or your pay increases. The Disability Marketplace is constantly changing. Coverage that you had 10 years ago when you purchased it as a Medical resident or young doctor probably doesn't suffice today.

I recently was with a surgeon who was earning more than $500,000 per year. And yet he only had $10,000 per month coverage. In the next ten years, he was going to earn at least $5,000,000. Was the original $10,000 per month benefit be enough for him and his family to support the lifestyle that he has grown into? If he was to get sick or hurt and unable to work in the operating room, can that happen? And what about the Financial Balance of his life? He will have to go into his savings, investments, his emergency fund to maintain a portion of his lifestyle. As his Assets decrease, his liabilities will increase. And his Cash Flow will be threatened by a lack of inflow. The properly designed plan could avoid this catastrophe. He should purchase more Disability Coverage, even at his age. Fortunately, he was healthy enough to get coverage. That isn't always the case.

 A Medical Resident, Fellow or Young Doctor should purchase Individual Disability Insurance as young as he or she can, and hopefully they are as healthy as they can be. Medical Doctors should maximize their coverage and assign the financial risk to an Insurance company so their income is protected.