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A Guide to Disability Insurance for Physicians

While the medical practice is filled with complex challenges and decisions, understanding disability insurance for physicians doesn’t need to be one of them. In this blog post, we provide an overview of what disability insurance is and why doctors must have comprehensive coverage. We also look at the different definitions and riders available to help you make the best decision when selecting a policy.

Whether you’re a physician seeking coverage or want to know more about what disability insurance entails, this post contains all the information you need.

What Is Disability Insurance for Doctors?

Disability insurance is a policy designed to provide income replacement in the event of an illness or injury that prevents a person from working, so that they can maintain their financial stability and lifestyle. It can be thought of as a form of “safety net” that provides you with protection against specific contingencies.

Since physicians are more likely than others to become disabled due to their specialized work, understanding the different definitions and riders available for coverage can ensure you have the best protection possible.

Defining Disabilities

There are three key definitions you should know are “own-occupation,” “modified own-occupation,” and “any occupation.”

Own-Occupation

A “true” own-occupation policy will pay benefits if a physician is unable to perform their specific job duties because of an illness or injury. This definition allows physicians to receive benefits even if they can work in another field while waiting to recover enough to go back to their medical practice. The primary benefit of this type of coverage is that it gives doctors more flexibility when returning after an extended leave due to disability.

Modified Own-Occupation

A modified own-occupations definition generally requires the insured physician either perform their current medical specialty full time or be able to work in another field and make at least 80% of what they were earning before becoming disabled. If you don’t fit either criterion, you won’t qualify for benefits under this type of policy.

Any Occupation

An any occupation definition requires that a person be mentally, physically, or totally unable to do any job for which they have training or experience for them to receive benefits from the policy. This definition can often result in the denial of claims due to its stringent requirements, so it’s not recommended for those seeking comprehensive coverage options.

Specialty Own-Occupation

A specialty own-occupation definition is the most comprehensive coverage option for physicians and other highly specialized professionals. It requires that a person be unable to perform the duties of their current specialty as defined by their policy, but they can still work in another field while they receive disability benefits. This type of coverage is ideal for those seeking maximum protection.

With so many options on the market and little time to dedicate to the pursuit, ensuring financial stability can take time and effort. Physician’s Resource Services has supported doctors in 49 states with excellent consultative services since 2007. We can help you structure a disability insurance plan that fits your objectives.

Our Approach to DI

What Does Disability Insurance Cover?

Disability insurance for physicians typically covers a large portion of their regular income if they become disabled. Depending on the policy, it will cover disability caused by an illness or injury and provide the physician with monthly benefits that help to replace lost income. Disability insurance for physicians also helps to cover additional expenses such as medical costs, rehabilitation expenses, and more.

Long-Term and Short-Term Disability Coverage

There are two types of disability insurance policies available to physicians: long-term and short-term. Long-term disability is designed to provide financial security for a physician who cannot work for an extended period, such as one year or more. Short-term disability insurance, on the other hand, offers income replacement for those who may be out of work due to an injury or illness that lasts only a few weeks or months.

The type of insurance a physician chooses should depend on their particular situation. For instance, long-term coverage may be the best choice if one has already accumulated enough financial resources to sustain them for a year or longer.

If the doctor only needs to replace income briefly, then short-term disability insurance may be the better option. Insurers frequently offer both policies so that you can have both types of coverage at once, but typically one is chosen over the other.

Policy Riders for Physicians With Disabilities

Several riders are available on select policies that may benefit physicians with disabilities. These can help increase payment amounts and extend the length of payment should you become disabled and need additional financial support over a longer period than your original policy allowed. Here are some standard types:

Cost of Living Adjustment (COLA) Rider: Increases benefit payments annually based on inflation rates so beneficiaries can keep up with rising living costs while receiving benefits

Future Increase Option (FIO) Rider: Allows you to increase your benefit amount as your salary increases without having evidence of insurability every time

Residual Benefits Rider: Pays partial benefits when you’re able to take on part-time employment yet still suffer some level of impairment from your disability

Noncancelable & Guaranteed Renewable (NC&GR) Rider: Ensures your premiums will not increase during the life of your policy; guarantees that the insurer cannot cancel your coverage without cause

How Much Disability Insurance Do I Need?

The type of coverage depends on your individual needs and lifestyle. Physicians should consider a policy covering at least 65% of their income. This may vary slightly depending on how much other income you have from investments or other sources. If you’re planning for retirement or will no longer have another source of income, you will likely want to purchase a higher percentage of coverage.

It’s also important to note that the benefit period is just as important as the amount of coverage when purchasing a policy. While it will vary depending on the type of insurance you choose, most policies will provide several months or years of protection based on your premium.

Work With Physician’s Resource Services to Find Proper Coverage

As a professional doctor or physician, you may not have time to research and apply for disability insurance coverage. There’s no shortage of options on the market, and knowing where to start can be tricky.

Your ability to earn an income is critical. Let Physician’s Resource Services help you discover and buy disability insurance that satisfies all your requirements. We model our consultative services to make securing adequate coverage straightforward and friction free.

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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.

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

Gabriela supports PRS’s advisors and client services team in a variety of ways, including updating our planning software, communicating with clients, and helping develop financial plans. Gabby sees it as a privilege to assist the hard-working, talented clients PRS serves, and one of her favorite things about her role is the opportunity to continually learn and grow alongside our team.

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 – PARAPLANNER

Karli brings four years of financial services industry experience with her to Physician’s Resource Services. As our firms paraplanner, Karli assists in on boarding new financial planning clients, gathering financial data, and meeting preparation. She holds FINRA Series 6, Series 63, and Series 65 licenses along with her insurance license. 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. She and her husband, Jamisen, recently moved from Southern California and live in Leander, TX. Outside of the office, Karli enjoys photography, traveling, and exploring new coffee shops in the Austin area.

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.

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.