What Residents Need To Look For In Disability Insurance
3 Essentials To A DI Policy
by Jack Le

If you are a resident physician or dentist, there are three essentials of a disability insurance (DI) policy that must be considered when evaluating purchasing an individual policy from any carrier in the industry. The three essentials typically found in a comprehensive policy for residents are*…

1. True Own-Occupation definition of total disability.
2. Non-Cancelable and Guaranteed Renewable to age 65.
3. Future Increase Option without the need for further medical underwriting.

True Own-Occupation Disability Insurance for physicians or dentists is a very important provision because it will consider you totally disabled if you become sick or injured to the point where you cannot perform the substantial and material duties of your own occupation even if you choose to work in some other occupation while you are on claim. If your occupation is limited to the performance of the material and substantial duties of a single certified medical or dental specialty then your specialty will be deemed as your occupation.

If you are totally disabled from your own occupation, and you are able to work in another occupation, your total disability benefits will continue so long as you are unable to perform the substantial and material duties of your own occupation. Not every DI policy will continue your monthly benefits should you decide to work in another occupation. Be sure to read the definition of total disability carefully on all quotes and policies.

You have spent a lot of time and effort to get into medical/dental school and will spend more time and effort to become a practicing physician/dentist. It is vital that your DI policy recognizes your own occupation to be specific to your specialty.

Don’t rely on Social Security for a better definition of total disability because the Social Security Administration will not only require that you cannot work in your normal occupation but also require that you are unable to make adjustments to working in some other occupation. So if you can work in any occupation then you will not be able to collect Social Security disability income benefits.

Secondly, you need a Non-Cancelable and Guaranteed Renewable policy to age 65. These provisions ensures that your cost for disability insurance cannot be increased by the insurance company as long as you pay on time and you keep the coverage the same. Every year until your age of 65, you are guaranteed to be able to renew your DI policy regardless of any changes to your health, age and occupation.

Finally, it is vital that you also include the Future Increase Option (FIO) rider in your policy. This FIO rider will allow you to purchase more DI coverage later as you transition into practice and your earnings increases. However, you will be able to purchase more DI regardless of any changes to your health. You must only qualify financially for additional purchases.

As residents, your income is no where near what it would be after you finish your training. It is vital that you protect your potential earning power now. So even if you had a stroke, heart attack, became a diabetic, or so on, you can guarantee yourself more DI coverage for later use.

If you are purchasing your first and only DI policy or purchasing a supplement DI policy, be sure that you choose a policy that has all three of the aforementioned essentials. Also, it is important to mention that you should choose a policy that includes a residual rider that pays you a partial disability benefit until your income recovers. Some residual riders only pay out benefits until you are able to go back to work. Going back to work does not necessarily mean that your income is going to be the same as it was before you became disabled. For physicians and dentists who have their own thriving practice, upon a medical recovery of a long term DI claim, it usually takes some time to rebuild the business and regain your income level. Be sure to choose a DI contract with a residual rider that will pay you benefits until your income recovers.

To speak with myself or any other disability insurance specialist call (888) 513-2300.


Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY.

*Total disability definition is typical in the industry and variations exist between different companies in the industry.

This publication is provided as a courtesy and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.

Please consult with the Social Security Administration for complete details concerning eligibility requirements for Social Security disability benefits.

Restrictions and limitations apply. A Future Increase Option exercised while disabled will not increase the claimant’s benefit while continuously disabled from the same, original cause. Other in-Force disability insurance may reduce the amount of Future Increase Option available for exercise. Please refer to the language of the Future Increase Option rider for further details. The information stated above provides a general description of the eligibility requirements for disability benefits from the Social Security Administration. For complete details concerning eligibility please contract the Social Security Administration.