https://physiciansrs.com/wp-content/uploads/2023/02/Image-of-a-couple-discussing-insurance-options..jpg 1250 2000 AbstraktMarketing /wp-content/uploads/2022/03/prs-logo-color.png AbstraktMarketing2025-05-02 07:45:312025-06-19 15:35:13Do I Need Life Insurance?That’s where this benefits glossary comes in. Created for residents, fellows, and newly practicing physicians, this guide breaks down essential benefits terminology, with a special focus on disability and life insurance. By understanding these key terms, you’ll be better equipped to make informed decisions that protect your income, your family, and your future.
Why Understanding Benefits Terminology Matters for Doctors
As a physician, your income is one of your most valuable assets. You’ve invested years—and thousands of dollars—into your education and training. Protecting that investment should be a priority, especially as you begin earning and building wealth.
However, many new doctors rush through benefits enrollment or simply opt for whatever seems easiest. Not knowing the ins and outs of your benefits can lead to serious consequences down the road, including inadequate insurance, gaps in coverage, or missed financial opportunities.
Understanding your benefits terminology isn’t just about decoding HR paperwork. It’s about making decisions that support your career, your family, and your future.
Disability Insurance Terms Every Doctor Should Know
If your ability to practice medicine were suddenly taken away, how would you pay your bills? Disability insurance for doctors is designed to protect your income in case you become injured or ill and can no longer work. Here’s what you need to know:
Own-Occupation Coverage
This is the gold standard for physicians. Own-occupation coverage pays benefits if you can’t work in your medical specialty, even if you’re able to work in another field.
For example, if you’re a radiologist who develops a vision impairment, you may still be able to work in a non-clinical role, but own-occupation coverage ensures you still receive your full disability benefits. This is crucial for doctors with specialized skills.
Elimination Period
This is the waiting period before your benefits kick in after you become disabled—typically 30, 60, or 90 days. The shorter the elimination period, the faster you receive benefits, though premiums are generally higher for shorter periods.
Choosing the right elimination period balances affordability with how long you could realistically go without income.
Benefit Period
The benefit period refers to how long your disability payments will continue. Options often include 2 years, 5 years, 10 years, or up to retirement age.
For physicians, a longer benefit period offers greater peace of mind, especially given the earning potential at stake if a disability occurs early in your career.
Partial/Residual Disability
Not all disabilities are total. A partial disability rider provides benefits if you can still work but experience a loss of income due to reduced hours or responsibilities.
This is important for physicians recovering from illness or injury who may return to work gradually.
Group Disability Insurance
Many employers offer group disability insurance, often at no or low cost. However, these policies tend to be less comprehensive and may not include own-occupation definitions.
Group coverage can be a helpful baseline, but most physicians will want to supplement it with an individual policy for stronger protection.
Short-Term Disability (STD)
Short-term disability covers temporary injuries or illnesses and generally pays benefits for a few weeks to months.
While STD is helpful in many professions, it’s less crucial for physicians compared to long-term disability. Still, it’s good to know if you have this benefit available.
Long-Term Disability (LTD)
Long-term disability insurance is the backbone of income protection for doctors. LTD kicks in after the elimination period and provides benefits for extended periods — often until retirement if needed.
This is the coverage that ensures your financial life stays on track if the unexpected happens.
Understanding disability insurance starts with knowing the language. Learn more about PRS’s disability insurance solutions designed for doctors and protect your income with confidence.
Life Insurance Terms Every Doctor Should Know
Doctor life insurance plays a different, but equally important, role in your financial strategy. It protects your loved ones and your legacy. Here’s the terminology you’ll encounter:
Term Life Insurance
Term life insurance provides coverage for a set period, usually 10, 20, or 30 years. If you pass away during that term, your beneficiaries receive the death benefit.
This is often the most affordable way for young physicians to get substantial protection during their peak earning and family-building years.
Whole Life Insurance
Whole life insurance is a form of permanent coverage that lasts for your lifetime and includes a cash value component that grows over time.
While more expensive, whole life can be part of a long-term wealth-building strategy. Some physicians choose this as a complement to term life insurance.
Beneficiary
Your beneficiary is the person (or people) you designate to receive the policy’s death benefit. Keeping this updated is crucial, especially after major life events like marriage or having children.
Face Value
The face value is the amount your life insurance policy will pay out when you pass away. This should be carefully chosen to ensure it covers debts, income replacement, and future expenses for your loved ones.
Group Life Insurance
Group life insurance is often provided by your employer, and it’s typically equal to 1x or 2x your annual salary.
While convenient, this coverage is usually limited and non-portable, meaning it won’t go with you if you change jobs. Supplemental policies are often necessary.
Supplemental Life Insurance
Supplemental life insurance can be purchased through your employer to increase your coverage beyond the base group policy.
This is a relatively affordable way to fill gaps, though coverage amounts may still fall short of what many physicians need.
Evidence of Insurability (EOI)
When applying for higher levels of life insurance coverage, you may need to complete evidence of insurability, which is essentially a health questionnaire or exam.
Locking in coverage early, when you’re young and healthy, can help avoid the need for EOI later on.
Life insurance can play a critical role in your financial security, especially when you understand your options. Explore PRS’s life insurance solutions to see how we help physicians build protection for their families and future.
General Employee Benefits Terms to Know
Beyond life and disability insurance, understanding broader benefits terminology will help you make the most of your employment package.
Premium
Your premium is the amount you pay (often through payroll deductions) to maintain your insurance coverage.
In some cases, your employer may cover part or all of your premiums.
Voluntary Benefits
Voluntary benefits are optional coverages you can elect, such as dental, vision, or legal insurance.
These can round out your benefits package and offer extra layers of protection.
Portability
If your benefits are portable, you can take them with you when you leave your job.
This is especially important for doctors who may change employers or transition into private practice.
Guaranteed Issue
Some benefits are offered on a guaranteed issue basis, meaning no medical underwriting is required.
For physicians with health conditions, this can be a valuable opportunity to secure coverage without going through extensive exams.
Pre-Tax vs. Post-Tax Benefits
Some benefits premiums are deducted pre-tax, which lowers your taxable income, while others are paid post-tax.
This distinction can affect how benefits are taxed when they’re paid out, an important consideration in your overall financial strategy.
How to Navigate Your Benefits With Confidence
Benefits elections can feel like just another box to check when starting a new job. But for physicians, understanding your benefits package is much more than paperwork. It’s the key to protecting your income, your family, and your future.
This benefits glossary is designed to help you decode the fine print, but making the most of your benefits often requires more personalized guidance. That’s where Physician’s Resource Services comes in. We help physicians like you navigate the complexities of disability insurance, life insurance, and much more.
Your financial well-being shouldn’t be left to chance—and with PRS by your side, it won’t be. Contact Physician’s Resource Services today and let’s build your plan together.
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