5 Best Disability Insurance Options for Physicians
172
A++
60 days
10 years or age 70
$20,000
117
A
60 days
5 years or age 67
$30,000
163
A++
30 days
10 years or age 70
$30,000
144
A+
30 days
5 years to age 70
$35,000
136
A
30 days
5 years or age 70
$25,000
As traditionally high earners with specialized skills and extensive training, physicians should consider purchasing disability insurance tailored to their occupational class. Several insurance companies offer specialized disability insurance plans designed for physicians.
In this review, we compare some of the top options available. Read on to discover our top picks and determine if they might be the right fit for you.
Our Top Picks for Best Disability Insurance Options for Physicians
Note: The following companies are listed in alphabetical order.
- Best for Comprehensive Coverage: Ameritas
- Best for Additional Benefit Options: Guardian
- Best for Customizable Policies: MassMutual
- Longest Benefit Period: Principal Financial Group
- Best for Low Premiums: The Standard
Best Disability Insurance for Physicians Reviews
Best for Comprehensive Coverage: Ameritas
- COBRA premium benefit
- Surgical transplant coverage
- Other insurance options available
- Lower A.M. Best rating
- Limited options for some medical specialties
- Mental health coverage has notable limitations
Why we chose it: Physicians looking for a strong comprehensive coverage package might consider Ameritas as their carrier of choice, since it offers the option to claim total own-occupation disability, which means you'll be awarded the full benefit even if you take a different career path after an illness or injury.
Read our review
What we like
Like other large insurance corporations, Ameritas offers a wide variety of additional riders and coverage options. Among these is a premium benefit specifically for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage that prolongs employer-provided medical, dental and vision insurance for employees out of work.
Ameritas also covers less traditional disability cases, such as disabilities caused by surgical transplants or plastic surgeries gone wrong. Lastly, because Ameritas offers insurance beyond disability, you can purchase coverage for other needs, including life, dental and vision insurance.
What we don't like
Ameritas has some drawbacks, particularly regarding its financial ratings and coverage limits. While an A rating from A.M. Best is respectable, many other companies boast higher ratings. From a coverage perspective, Ameritas offers limited mental health benefits (only 24 months). And dentists may find more competitive policies elsewhere with equally good or better own-occupation riders.
Best for Additional Benefit Options: Guardian
- Higher maximum coverage
- Extensive additional benefit options
- Hospice care benefit
- Higher cost
- Longer wait times for underwriting
- Some customer service concerns
Why we chose it: Guardian offers comprehensive disability insurance plans with an extensive selection of benefit options that can meet most physician’s needs.
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What we like
With a comprehensive own-occupation rider, you're covered for full benefits if you're unable to practice your primary profession, regardless of whether you're employed in another field. Additionally, if you continue to practice but in a reduced capacity due to a documented disability, you're still eligible for full benefits.
Guardian's core benefits encompass unlimited mental health coverage in many states, specialized benefits for critical conditions such as cancer or heart attacks, and support for occupational rehabilitation. Distinguishing itself from competitors, Guardian also provides an optional hospice coverage rider.
Other features include:
- High maximum monthly coverage
- Fast underwriting
- Two-year limit for mental disorders
- Lump-sum option for serious illness benefit
What we don't like
Customer feedback highlights that Guardian's processing time for disability applications and payment delivery tends to exceed industry norms for both individual and group policies. Concerns about timeliness extend to customer service, with reports of extended wait times for inquiries and claims processing.
Best for Customizable Policies: MassMutual
- Customizable policies
- Automatic increase benefit rider
- High A.M. Best rating
- Long waiting and elimination periods
- Lower maximum monthly benefit for some higher earners
- Limited student loan protection
Why we chose it: MassMutual offers excellent customization and a wide range of coverage options, from disability, life, dental and vision insurance to annuities.
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What we like
MassMutual offers two disability insurance options for physicians: Radius and Radius Choice. These plans allow for customizable elimination and benefit periods and offer additional options such as a Cost of Living Increase (COLA), extra mental health coverage, and a catastrophic disability rider for cases of severe impairment. To address physicians' expected earnings growth, MassMutual also provides an automatic increase benefit rider, which offers a simple percentage increase that can be regularly renewed.
Additional features include:
- Availability in all 50 states
- Wide variety of no-cost riders
- Own-occupation rider (not automatically included)
- Low age for future increase options
What we don't like
MassMutual’s cons include longer-than-average elimination and waiting periods. For instance, its 60-day waiting period for benefit commencement contrasts with the 30-day norm among competitors. Furthermore, the company imposes a $20,000 cap on monthly benefits and restricts benefits for student loan payoffs.
Best for Longest Benefit Period: Principal Financial Group
- High maximum monthly coverage
- Early-career benefits, especially for female physicians
- Fast underwriting
- Two-year limit for mental disorders
- Lump-sum option for serious illness benefit
- Some state limitations
Why we chose it: With a wide spectrum of benefit periods ranging from two to five years and all the way up to age 70, a physician can maintain a reasonable policy throughout a decades-long career with Principal Financial Group.
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What we like
Catastrophic illness and injury can significantly disrupt a physician's career. Principal Financial's physician disability insurance is an optimal coverage option due to its long benefit period and features attractive to young physicians, including discounts for residents and fellows and a best-in-class monthly pay rate of up to $35,000.
Additionally, Principal offers a non-cancellable or automatic renewal guarantee, ensuring policy stability as long as premiums are paid, and provides gender-neutral policies to eliminate higher premiums for female physicians.
Other features include:
- COBRA premium benefit
- Surgical transplant coverage
What we don't like
Principal Insurance’s physician disability policy has some limitations, such as mental health coverage being limited to two years and certain riders not being available in all states. Additionally, the serious illness benefit is only payable as a lump sum.
Best for Low Premium Rates: The Standard
- Available in all 50 states
- Wide variety of no-cost riders
- Own-occupation rider costs extra
- Low age for future increase options
- Limited elimination period options
Why we chose it: The Standard has a long and consistent history of providing comprehensive disability insurance at an affordable price, making it our pick for the best low premium rates.
Read our review
What we like
The Standard offers basic disability insurance for physicians, covering partial and total loss of the ability to work in your own or any occupation. It includes no-cost riders, such as rehabilitative care, family support and survivor benefits, and provides automatic benefit increases to reflect income growth. The policies are fully portable, allowing physicians to maintain coverage when changing jobs or starting their own practice.
Other features include:
- Extensive additional benefit options
- Hospice care benefit
What we don't like
Despite its broad range of products The Standard has a few notable limitations. Its basic liability policy doesn't include an own-occupation rider. This means that, unless you purchase an optional rider, you won't receive benefits if you lose the ability to practice medicine but can work in another field. Additionally, while some companies offer coverage extensions past age 70, The Standard's add-on extends only to age 60. Limited elimination periods also result in less flexible policies.
Other disability insurance for physicians we considered
Constellation Insurance
- Strong financial ratings
- Survivor benefits
- Good for small medical practices
- 60-day elimination period
- Focus on white-collar roles
- More conservative underwriting
Constellation Insurance, formerly Ohio National, offers multiple policy options, including valuable survivor benefits and business insurance for practitioners bundling disability and business coverage. However, its minimum 60-day elimination period and lower-than-average claims payouts may not suit budget-conscious families.
Northwestern Mutual
- Nation's second-largest insurance company
- A.M. Best's highest rating
- Impressive policy offerings
- Lack of online transparency
- Some reported higher costs
- No weekend claim reporting by phone
A multi-product company, Northwestern Mutual provides an impressive array of insurance coverages, including life, disability, long-term care and annuities. However, a lack of information available online and no phone-based claim reporting means Northwestern Mutual still has some improvements to make.
Mutual of Omaha
- Terminal illness benefit
- Hospital confinement indemnity benefit
- Online quotes
- Basic partial disability
- Low policy issue age
- Lack of options for group coverage
Mutual of Omaha provides a terminal illness benefit for 12 months and a hospital confinement indemnity benefit for extended stays. Its online quoting tool offers basic coverage estimates at different premium rates. While ideal for individual policies, it lacks options for employer-sponsored group coverage.
Disability Insurance for Physicians Guide
To properly evaluate physician disability insurance, you must first understand what insurance is and what criteria you should consider in choosing your provider.
What is disability insurance?
Disability insurance provides financial support for people who can't work in their chosen field or with their chosen employer due to illness or injury. This form of insurance can be purchased as individual policies or subsidized by employers. Disability insurance serves as a hedge, offering financial protection against the risk of being unable to work due to disability.
There are two main types of disability insurance:
- Short-term disability insurance: usually covers less than six weeks of time off work.
- Long-term disability insurance: covers extended periods beyond six weeks, though the duration can vary depending on the specifics of each policy.
The cost of disability insurance varies by occupation type, risk factors, length of coverage, specific riders and other criteria. Policies are usually tailored to the individual purchaser, with premiums and deductibles determined during the buying process.
How does disability insurance work?
Similar to other types of insurance, the process of claiming disability insurance begins when you file a claim due to an illness or injury that hampers your ability to work.
How quickly your provider evaluates your claim will, in part, depend on:
- The nature of your illness or injury
- Your physician's evaluation
- Your chosen coverage
- How long you're expected to be absent from work
Short- and long-term disability claims are typically filed separately, though short-term support may transition into long-term disability coverage for more serious conditions.
After completing the waiting period set by your insurance company, you can start receiving payments, which continue until you're ready to return to work or your benefits end. Factors like occupational rehabilitation, physician advice, and company policies determine the duration of your benefits.
Types of disability insurance coverage for physicians
As with other occupations, doctors can choose from a wide selection of insurance plans with varying waiting periods, lengths of coverage and protections. But other factors can inform the type of insurance physicians need, including their salary, debt and level of risk.
True own-occupation
Disability insurance may include own-occupation disability coverage, or protection for not being able to perform the role you had before your illness or accident. True own-occupation disability means that coverage is in place for the occupation you were trained for, even if you can work in another role.
For instance, you might be fit for a desk job but unable to continue your previous medical work due to physical limitations, such as the inability to stand for long periods. True own-occupation coverage safeguards high earners, like physicians, accustomed to specific incomes.
Any-occupation
In contrast to true own-occupation disability insurance, any-occupation coverage extends beyond one's specific former role or potential role. With any-occupation coverage, benefits activate if the insurer deems the individual incapable of performing any job reasonably suitable for them physically or mentally.
This means that if someone can no longer practice as a physician but can work in another capacity, they may not qualify for coverage. "Reasonably suited" refers to a job that aligns with one's education, training, age or past experience. For instance, it would be unreasonable to expect a teacher to become a police officer or an advertising executive to transition into a medical role. Insurance companies determine such suitability as part of the disability claims process.
Partial disability
Partial disability insurance covers situations where you're unable to perform some aspects of your previous occupation, even if you can still manage other parts or earn the same income.
The definition of partial disability is determined by the insurance company and sometimes by state regulations. Your doctor can also assess whether you need partial or full disability payments.
After you submit a claim, medical professionals working for the insurer evaluate it to determine your entitlement. Examples of partial disabilities include partial vision or hearing loss, injury to one knee, ankle, wrist or arm (but not both), or post-traumatic stress disorder (PTSD).
Residual disability rider
Residual disability riders are similar to partial disability benefits. This rider may be added to an insurance policy that doesn’t offer partial benefits. It is designed to protect you from income and occupation loss due to some of the illnesses and injuries listed above. Essentially, a residual disability rider provides income protection in the event that you cannot work at your full capacity.
Supplemental disability coverage
Disability coverage aims to financially support individuals during catastrophic and often prolonged events, but some policies may not offer sufficient assistance to maintain their desired quality of life. Supplemental disability coverage is an additional policy intended to bridge these gaps in disability coverage.
It's common for individuals to purchase and pay premiums on multiple disability plans to ensure adequate coverage. This is especially prevalent among those who rely on Social Security benefits for primary disability payouts or wish to supplement employer-sponsored disability plans with their own policies.
Disability Insurance for Physicians FAQ
What disabilities qualify for disability insurance?
Short-term disability insurance typically covers temporary illnesses, injuries, and conditions such as broken bones, arthritis, pneumonia or mononucleosis, along with mild surgeries and mental health issues like anxiety or depression, as well as postpartum recovery.
In contrast, long-term disability insurance is designed for severe or enduring illnesses and injuries necessitating extended or permanent absence from work, including chronic conditions like severe back or leg pain, life-threatening events such as heart attacks or strokes, and most cancers or severe accidental injuries.
Does disability insurance require a medical exam?
Some disability insurance policies require a medical exam to determine eligibility, similar to life insurance. This exam helps underwriters estimate potential future claims and set your premium and deductible. During the exam, a doctor will perform a physical checkup and routine blood work, and you'll answer questions about your medical history, health habits, genetics and current occupation.
What factors determine disability insurance rates?
Disability insurance policies are customized based on several key factors. These include your occupation's risk level, with higher rates for riskier jobs; benefit and elimination periods, with shorter periods increasing rates; and health history, with higher premiums for past or potential illnesses and health risks like smoking or obesity. Additionally, premiums vary by company and policy.
How can a physician apply for disability insurance?
Physicians can apply for disability insurance through employer-sponsored plans, which often offer perks like shorter waiting periods, longer benefit periods and waived medical exams. When enrolling, it's important to know your budget, state coverage options, and desired coverage. You'll then work with the insurer to negotiate your policy, which may involve a physical exam or bloodwork for rate determination.
How We Chose the Best Disability Insurance for Physicians
To choose the best disability insurance for physicians, we evaluated policy provisions, add-on riders, benefit limitations, elimination and payment periods, bundling options, discounts and occupation-specific benefits. We also considered each company's financial strength, customer service reputation, application and underwriting processes, online purchasing ease and information transparency.
Summary of Money’s Best Disability Insurance For Physicians
- Best for Comprehensive Coverage: Ameritas
- Best for Additional Benefit Options: Guardian
- Best for Customizable Policies: MassMutual
- Longest Benefit Period: Principal Financial Group
- Best for Low Premiums: The Standard