Top 5 Mistakes Doctors Make With Disability Insurance

Before we start to talk about what we get wrong with disability insurance, I should tell you that I personally do not carry disability insurance. It’s true. If I were no longer able to perform my duties as an anesthesiologist, I would no longer earn a paycheck.

Top 5 Mistakes Doctors Make With Disability Insurance

Busy doctors can get so stressed by how time-consuming and complicated researching disability insurance can be that they end up going with the wrong policy or forgoing disability insurance altogether.

1. Thinking they don’t need disability insurance

Many doctors, especially young doctors, think that they’ll never become disabled. Studies show, however, that doctors have a 20-30% chance of being disabled over the course of their careers, a much higher chance than those in other white-collar professions.

A recent study showed that 42% of people diagnosed with cancer end up depleting all of their life savings, even when they had health insurance.

2. Believing all disability insurance is the same

Despite its confusing jargon, it’s so important that you fully examine the policies if you choose to do the research yourself. The coverage you purchase and how it protects you is only as good as its contract language.

3. Thinking employer coverage is enough

Disability insurance through your employer is just not enough on its own! Most doctors don’t realize this but their employer’s coverage is not true own-occupation coverage and the benefit is most often taxed before you ever receive it.

4. Not using an independent insurance broker

Even if they have the best intentions to be impartial, if their office is paid for by one company and their bonuses are linked to selling policies from that company, they can only be dispassionate to a certain degree.

5. Waiting to buy disability insurance

To get the best price and not risk your opportunity to get coverage, the sooner you start looking into disability insurance, the better.

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