Does the disability insurance plan you have through your employer give you the financial safety net you need, or does it come up short?
As a medical resident, if you don’t know the answer to that question, it’s time for you to take a closer look at the coverage you have now and make sure you get the right coverage as an attending physician.
There are two main types of disability insurance medical residents need to understand: true own-occupation and any-occupation. One will ensure you will have financial security and peace of mind, the other could leave your financial future in jeopardy.
True own-occupation disability insurance is tailored for the unique needs of physicians, offering coverage if you are unable to perform the specific duties of your medical specialty, even if you can work in another field.
Think about it like this: If you are a surgeon and developed a hand tremor and could no longer perform surgeries, but you could pursue a career in teaching, you would receive benefits.
There are two added benefits of this policy type beyond coverage:
You own the policy, so you can take your policy with you as you change jobs
Your benefits are not taxable
Any-occupation disability insurance is often a policy provided by employers or professional associations, but usually offers less tailored coverage and benefits.
This type of insurance typically requires that you cannot work in any occupation to receive benefits, a definition that can significantly limit access to your benefits. The broader criteria may leave you without the necessary coverage to protect your income if you were unable to perform the duties of your specialty, but could still work in a different field.
Using the earlier scenario, if you are a surgeon who developed a hand tremor and could no longer perform surgeries, but you could pursue a career in teaching, you would not receive benefits.
Unlike true own-occupation policies, you can’t take your employer’s policy with you, and your benefits will be taxed.
Why is true own-occupation insurance considered superior for physicians?
You’ve dedicated years of your life into training and have likely accumulated hundreds of thousands of dollars in education debt. The investment you’ve made in yourself deserves the best protection possible.
Don't leave your professional future to chance.
Complete a free quote request in 5 minutes, receive a free consultation with an expert with no obligation to buy, and make an informed decision about your coverage.