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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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As a physician, your most valuable asset isn’t your car, home, or retirement account—it’s your ability to earn an income. But what happens if illness or injury robs you of that ability? Disability insurance is often overlooked, but it’s one of the most important financial tools you’ll ever use to protect your future. Let’s talk about why every physician—whether in training or well into their career—should take disability insurance seriously.
Disability insurance is a safety net for your paycheck. If you get too sick or injured to work, it provides a monthly income to help cover your expenses. For physicians, this coverage is an absolute game plan essential. Why?
Your career as a doctor is unique. It involves years of study, grueling training, and delayed financial rewards. Unlike other professions where you begin earning a strong income out of college, physicians often make sacrifices for nearly a decade. Given these circumstances, protecting this substantial investment in your future with disability insurance is basically non-negotiable.
Many doctors underestimate how much a loss of income due to disability can derail their entire financial plan. Think about it: You’ve spent years in education and residency. If something unexpected interrupts your ability to practice, what happens then?
A single injury or illness could result in:
Disability insurance works as a financial lifeline, ensuring that even in the worst-case scenario, you can stay afloat without derailing your long-term goals.
The cost of disability insurance often catches physicians off guard, especially those in training. Imagine being a resident earning $4,000 a month and facing a $175 monthly premium. That feels like a lot, doesn’t it?
Here’s why it’s worth it:
It’s similar to car insurance: You don’t think about it until you need it. But when you do, you’ll be grateful it’s there.
When it comes to premiums, there are two main types for individual policies: graded premiums and level premiums. Understanding the difference can save you a lot of stress and money.
A level premium stays fixed for the life of the policy. It’s stable and predictable, but because it averages the risk over time, it’s more expensive upfront.
Graded premiums start lower and increase each year as you age. For younger physicians, this makes disability insurance more affordable during the low-earning years of residency and fellowship.
If you’re fresh out of medical school or in training, graded premiums might be the better option. Many physicians start with graded premiums and switch to level premiums as their income grows. That said, don’t forget: The longer you wait to lock in a level premium, the higher it will get.
During residency or fellowship, you likely have access to a group disability plan through your employer. It’s usually free or nearly free, which is a plus. But group plans often fall short in several areas:
For some high earners or those with robust group plans, opting out might make sense, especially if the policy has poor terms. But most physicians will benefit from supplementing their group plan with an individual policy. The two are additive, meaning they work together to give you more complete coverage.
The most critical part of any disability insurance policy for physicians is the definition of disability. Ideally, you want a policy with a true own-occupation clause.
If you can’t perform the duties of your specific job (e.g., a surgeon unable to operate), you’re considered disabled, even if you could work in another role, like teaching or consulting.
Some policies come with weaker definitions, like “medical occupation” or “any occupation.” These could leave you vulnerable, especially if you can no longer practice your specialty but are technically able to perform other types of work.
Doctors invest years into training for their specialties. A general "any occupation" policy could force you to work in roles that pay far less than your original career.
It’s easy to think, “This won’t happen to me.” But claims can and do happen across all stages of a physician’s career. Here are some examples to illustrate why disability insurance matters:
These stories aren’t just cautionary tales—they’re reminders that life can change in an instant.
An often-overlooked benefit of individual disability insurance policies is their flexibility. You can:
This adaptability makes it easier to customize the policy to meet your needs as your career evolves.
Choosing a disability insurance policy is a big decision. The process feels overwhelming, but the key is to learn as much as you can and ask pointed questions:
Trust but verify, and make sure you’re working with an advisor who specializes in physician disability insurance. Transparency is critical.
Disability insurance might not be the first thing on your mind as a doctor, but it should be a major part of your financial foundation. It’s not just another expense—it’s an investment in your ability to continue living the life you've worked so hard for, even in the face of unexpected challenges.
Whether you’re in training or already established, take the time to understand your options and get the right policy for your needs. Don’t wait for “someday.” This is the kind of safety net you’ll thank yourself for having, even if you never need it.
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The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
Michael is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 9200 CORPORATE BLVD, SUITE 390, ROCKVILLE MD, 20850, 240-683-9700. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. M.R. Insurance Consultants is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License #0G91249, AR Insurance License #8913976. 2024-179887 Exp 8/26
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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Conversations helping graduating medical students to attending physicians build a strong financial foundation
