Physician disability insurance is a crucial safeguard for doctors, yet there are many misconceptions surrounding it. Misinformation can lead to costly mistakes, such as choosing inadequate coverage or delaying the purchase of a policy. In this article, we’ll debunk some of the most common myths about physician disability insurance and provide the facts you need to make an informed decision.

Myth #1: Group Disability Insurance Is Enough

Fact: While many physicians receive group disability insurance through their employer, these policies often fall short. Group coverage typically replaces only 50-60% of your income, may not cover bonuses or incentive pay, and is usually taxable. Additionally, if you leave your job, you may lose your coverage. A private own-occupation disability policy ensures you have consistent, portable protection that pays benefits even if you can no longer work in your specialty.

Myth #2: Disability Insurance Is Only for Older Physicians

Fact: The best time to purchase disability insurance is early in your career, ideally during residency or fellowship. Younger physicians benefit from lower premiums and fewer medical restrictions, as policies are based on age and health at the time of application. Waiting until later in your career increases the risk of higher costs or exclusions due to medical conditions.

Myth #3: A Disability Must Be Catastrophic to Qualify for Benefits

Fact: Many physicians assume that only severe injuries or illnesses qualify for disability benefits. In reality, policies cover a broad range of conditions, including musculoskeletal disorders, neurological diseases, mental health conditions, and even cancer. The key is to have a policy with a strong definition of total disability, particularly a true own-occupation policy, which pays benefits if you can’t perform the duties of your medical specialty.

Myth #4: Disability Insurance Is Too Expensive

Fact: While disability insurance is an investment, it is far more affordable than most physicians think. The cost of a policy depends on factors like age, specialty, health, and policy features. Many insurers offer discounts to medical residents, and options like graded premiums or future purchase riders can make coverage more affordable. Considering that a disability could jeopardize years of earning potential, disability insurance provides essential financial protection.

Myth #5: Social Security Disability Benefits Will Be Enough

Fact: Relying on Social Security Disability Insurance (SSDI) is risky. The approval process is strict, and the majority of claims are initially denied. Even if approved, SSDI benefits are minimal and unlikely to sustain the lifestyle of a physician. Private disability insurance offers significantly more comprehensive and reliable income protection.

Myth #6: My Policy Covers Everything

Fact: Not all disability policies are created equal. Some have restrictive definitions of disability, limiting coverage to total disability and excluding partial disability benefits. Others have limitations on coverage for specific conditions like mental health disorders or pregnancy-related disabilities. It’s critical to review your policy details, including benefit periods, elimination periods, and riders, to ensure comprehensive protection.

Myth #7: I Can Always Get Coverage Later

Fact: Waiting to purchase disability insurance can be a costly mistake. As you age, premiums increase, and any new medical conditions could lead to exclusions or even disqualification from coverage. Locking in a policy early ensures better protection at lower rates.