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Why You Need to Lock in Disability Insurance for Doctors During Residency

As a medical resident, your focus is on building clinical skills, completing rigorous training, and preparing for a long and successful career in medicine. With demanding schedules and financial responsibilities like student loan payments, it’s easy to overlook disability insurance as a priority. Many residents assume they don’t need coverage until later in their careers, but securing a policy early can have lasting financial benefits.

Disability insurance for doctors helps protect future income, ensures financial stability

in the event of an unexpected disability, and allows physicians to lock in lower premiums while they are young and healthy. In this article, we’ll explore why disability insurance is essential for residents, how securing a policy early can offer financial advantages, and what features to look for when selecting the right coverage.

Why Medical Residents Should Consider Disability Insurance Early

Medical residency is the foundation of a physician’s career, but it’s not without its financial risks. Residents spend years training for a high-earning future, but without protection, an unexpected illness or injury could derail those plans.

Many residents assume that disabilities are rare, especially at a young age. However, almost one in four professionals will experience disability before retirement. Whether it’s due to an accident, illness, or chronic medical condition, losing the ability to practice medicine—even temporarily—can have serious financial consequences. This is why disability insurance for doctors is a key investment in long-term financial stability.

The Financial Risk of Losing Income Due to Disability

Your income as a resident may not be high, but it represents your future earning potential. Without the right protections, a sudden disability could create significant financial strain, especially when considering student loans and living expenses.

How a Disability Can Impact a Medical Resident’s Finances

  • Loss of future earnings: A disability could prevent you from completing training or practicing medicine, affecting decades of potential income.
  • Inability to pay student loans: Unlike other forms of debt, medical school loans typically cannot be discharged due to disability. Without an income, repayment becomes a major challenge.
  • Increased medical expenses: If you become disabled, you may face additional healthcare costs for treatment, rehabilitation, or ongoing medical care.
  • Dependence on limited employer benefits: Many residency programs offer short-term disability coverage, but these policies often have strict limitations and may not provide adequate long-term protection.

Why Locking in Physician Disability Insurance Early Matters

Many factors determine the cost and terms of disability insurance, including age, health, and career status. Medical residents who secure a policy early often receive significant benefits that wouldn’t be available later in their careers.

Key Advantages of Getting Disability Insurance in Residency

  • Lower Premiums: Premium rates are based on age and health. Locking in coverage during residency means lower lifetime costs.
  • Stronger Policy Terms: Younger and healthier applicants often receive better policy terms with fewer exclusions or limitations.
  • Protection for Future Earnings: If you develop a medical condition before obtaining a policy, insurers may restrict your coverage or deny certain claims. Getting coverage early helps avoid these risks.

By securing disability insurance for doctors as a medical resident, you lock in financial protection at a stage when coverage is more affordable and accessible.

Finding the right disability insurance early in your career can make a significant difference in long-term financial security. Contact PRS today for professional guidance on securing the best coverage for your needs.

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The Role of Medical Underwriting in Disability Insurance

Medical underwriting plays a significant role in disability insurance eligibility. Insurers evaluate an applicant’s medical history, lifestyle, and risk factors before approving coverage and determining policy terms.

How Residency Status Affects Eligibility

  • Fewer Pre-Existing Conditions: As a young and relatively healthy applicant, a resident is more likely to qualify for coverage without exclusions.
  • More Favorable Policy Options: Some insurers offer Guaranteed Standard Issue (GSI) plans for residents, which bypass full medical underwriting and provide coverage without the need for extensive health screenings.
  • Avoiding Future Restrictions: Waiting to secure disability insurance increases the risk of developing health conditions that could lead to higher premiums or policy exclusions.

Key Features to Look for in a Disability Insurance Policy

Not all disability insurance policies offer the same level of protection, and as a medical resident, it’s important to understand the types of coverage available. While the right features can make a big difference in how well a policy protects you, knowing which options apply to your specific situation isn’t always straightforward.

Some common policy features to be aware of include:

  • Own-Occupation Coverage
  • Non-Cancelable and Guaranteed Renewable Terms
  • Residual/Partial Disability Riders
  • Future Increase Option (FIO) Riders

With so many choices—and varying definitions across providers—it’s easy to feel overwhelmed. The right combination of features depends on your specialty, career goals, and financial circumstances. Working with a professional who understands physician coverage can help you navigate these options and find a policy that aligns with your needs and future plans.

Reach out to PRS today to explore coverage options tailored to your career stage and financial goals.

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How Disability Insurance Fits into a Resident’s Financial Strategy

Disability insurance is a key component of a resident’s broader financial plan. While residency salaries are modest, early planning helps protect long-term income potential and financial security.

Why Disability Insurance Is an Essential Financial Tool

  • Complements employer benefits: Many residency programs offer limited or short-term disability insurance that may not be enough for long-term needs.
  • Prepares for the unexpected: Financial stability isn’t just about earning—it’s about protecting what you’ve worked for.
  • Supports future wealth-building: A strong disability insurance policy acts as a financial safety net, preventing setbacks that could impact retirement planning and long-term savings.

Prepare for Your Financial Future With PRS

Locking in disability insurance during residency is a proactive step toward long-term financial security. It protects against the unexpected, ensures income stability, and allows residents to secure lower premiums before potential health changes impact eligibility.

At Physician’s Resource Services, we help medical residents navigate their insurance options with personalized guidance and industry insight. Contact PRS today to learn how we can help you find the right disability insurance policy to protect your future income and career.

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Robin Bales – AGENT

Robin has owned a Commercial Leasing Company providing financing to doctors and other operators for their equipment beginning in 2007. After the global crash of 2008, she went to work for NYL and spent 3 years there working with other entrepreneurs securing their retirement future and safeguarding their personal asset risks. Robin opened her own agency in 2017 Legacy by Design and has run a national firm coast to coast with 50-70 agents. Today the agency is much smaller serving 5 agents who share the same vision and passion for our clients focusing on health insurance, Medicare, and annuities.

Robin is most connected to ethos of PRS mission to improve the lives of doctors and their families. Supporting those who run the leading infrastructure of our country.

Robin has been married for 22 years to her husband Steven. Together they have 3 girls and have built a family with strong values and commitment to each others successes. Robin’s family are home bodies by nature and enjoy their 3 dogs hanging in living room or kitchen.

Kevin Burris – PARAPLANNER

Kevin received his BA and MBA from Indiana University, earned the Certified Financial Planner (CFP) designation from the University of Georgia, and Retirement Income Certified Professional (RICP) designation from the American College. Kevin is looking forward to helping physicians live their best life. Kevin enjoys spending time on the lake with his wife, playing golf, and watching Indiana University sports.

Michael Kohles – AGENT

Michael attended Lake Michigan College and Siena Heights University, graduating magna cum lade with a Bachelor of Business Administration, with a major in Finance and minor in Marketing. Michael has been in the financial services industry since 2015 and has experience with multiple insurance verticals. Michael is excited to help physicians achieve their financial goals by providing insurance solutions. Michael is married to Erin and has 4 children. Michael also enjoys reading, golfing, playing poker, learning, and traveling.

Erin Kohles – UNDERWRITING PROCESSOR

Erin supports our advisors and clients during the insurance underwriting process in multiple ways. On a given day, she helps by processing applications, tracking and following up on open cases, and answering client questions. She appreciates the part she plays in helping clients prepare for the future, and she strives to make the process as simple and efficient as possible.

Erin has been in the insurance industry for two years and brings with her six and eight years of experience in accounting and quality control, respectively. She graduated from Ball State University and has her life & health and property & casualty insurance licenses. In her free time, she enjoys cheering on her two boys who play basketball, soccer, and baseball; traveling with her husband; and playing with their Yorkie, Mingo.

Gabriela Chavez – ANALYST

At Physicians Resource Service Gabby plays a pivotal role in Paul’s advisory team, staying in close contact with clients, driving business development, and lending a hand in daily operational tasks. Additionally, she collaborates with CPA Erin Anderson to prepare tax returns, conduct withholding reviews and undertake various tasks across the division.

Gabby is currently double-majoring in accounting and finance at the University of the Incarnate World in San Antonio, and she plans to sit for her Certified Financial Planning exam in the fall of 2022. Before transferring to UIW, she attended the University of Texas Rio Grande Valley in Edinburg, Texas. Gabby was born in Germany and is Mexican American. She loves to travel and has visited 11 different countries. She has a five-year-old pug named Penny.

Erin Anderson – CERTIFIED PUBLIC ACCOUNTANT

As a certified public accountant, Erin is a valuable part of our tax division at PRS. She enjoys working with our advisors to develop tax-efficient strategies, and she strives to provide clarity for every client she serves. Erin started her career as an accountant after graduating from Oklahoma State University in 2012 with a master’s degree. She earned her CPA license in 2018. Erin and her husband have two little boys, and they love spending time outdoors as a family and watching OSU football.

Alex Simmons – BUSINESS DEVELOPMENT

Alex oversees Business Development at Physician’s Resource Services. She works with each department to assist in continually improving PRS so we remain a leading competitor in the industry. Alex graduated from Texas Tech University with a Bachelor of Business Administration in Energy Commerce. She is a Texas native who loves to spend her free time traveling and taking her pup, Teddi, to the dog park.

Karli Allen – HEAD OF WEALTH MANAGEMENT

Karli is a graduate of The Master’s University in Santa Clarita, CA, and has a business degree with emphases in accounting, finance, and management. Karli has been in the financial services industry since 2014 and joined the PRS team in 2018.

Karli oversees investment and financial planning operations and assists with the onboarding and service of the firm’s advisory clients.  Karli was a key part of our firm’s custodial transition to Fidelity in 2019 as part of our decision to become an independent investment advisory firm.  Before joining PRS, Karli worked in personal financial planning in Orange County, California.  She also holds a FINRA Series 65 license. Karli is grateful to be a part of such an amazing team.

Outside of work, Karli enjoys traveling, playing golf, and spending time with her husband and their goldendoodle.

Jennifer Khan- UNDERWRITING SPECIALIST

Jennifer is an Underwriting Specialist at Physician’s Resource Services, with an extensive background in customer service and administration. Jennifer grew up in Texas, graduated from Southeast Missouri State University with a BFA in Theatre, and spent six years in Chicago performing sketch and improv. She is a graduate of the Conservatory Program at The Second City and iO Chicago. Jennifer and her husband, Qamar, moved to Texas with their dachshund mix, Dobby, to be closer to family, sunshine, and good BBQ.

Cheryl Breeden – OFFICE MANAGER

Cheryl is the Business Manager for the firm and a licensed service assistant. She graduated from the University of Texas at Austin with a Bachelor’s Degree in Business Administration. She has years of experience in the areas of process management, customer service, benefits, and insurance. Cheryl has three girls — Ashley, Hannah, & Olivia. She brings this experience to our firm where she manages the underwriting and service process. She also manages the business operations for the firm.

John C. Jackson IV – ASSOCIATE FINANCIAL CONSULTANT

John is an agent from Austin, TX, a graduate of Westlake High School and The University of Texas at Austin, with a Bachelor’s Degree in Economics and a Minor in Business Administration. While at UT, John was a 2-Time Captain and 4-Time All-Conference performer for the men’s lacrosse team. While away from the office, John coaches with the Westlake Youth Lacrosse program and volunteers with Austin’s Young Men’s Business League, and Austin Sunshine Camps.

Chris Fullbright – FINANCIAL ADVISOR

Chris brings experience in financial services and the perspective of a successful entrepreneur who has launched several businesses. With over a decade in the industry, he has served as both an advisor and in a management role coaching new advisors. Chris attended the University of Georgia and Texas State University and graduated with a Bachelor of Applied Arts and Sciences.

He currently holds many financial services licenses and designations including FINRA Group One, Series 6, Series 63, Series 65, Series 7, ARPC, and Certification in Long Term Care (CLTC). In his free time he enjoys being involved in the local community through organizations such as Comfort Crew for Military Kids. Chris is also an active member of Austin Christian Fellowship Church, and enjoys spending time there as well as reading, fishing, and going to sporting events. He is happily married to Monique with two wonderful sons. In addition to serving physicians, Chris specializes in working with special needs families.

Paul Smith, CFP® ChFC® MSFS – FINANCIAL ADVISOR

Paul has helped his clients in financial, business, and estate planning for over 10 years. Paul is a graduate of Texas State University, with a Bachelor’s Degree in Psychology. He has also completed the extensive studies necessary to earn the Certified Financial Planners (CFP®) and Chartered Financial Consultant (ChFC®) designations. Paul is actively involved in the community through his volunteer work and service on Community Action Board for the Helping Hand Home for Children. Paul is married to Heather and they have two children, Nyla and Hazel.

Richard Cunningham – MANAGING DIRECTOR

For 30 years, Richard has been helping clients reach their financial goals with sincerity and integrity. He works with GME program administrators, individual physicians and their families to help doctors achieve financial security. Richard is a graduate of the University of Texas at Austin, with a Bachelor’s Degree in Economics. He studied in Paris at the Sorbonne. Richard supports numerous charitable organizations, is actively involved in Austin Recovery, and he participates in the Leukemia Lymphoma Society as a survivor of CML. Richard is married to Adrienne with two children, Raven and Coates.