Story at-a-glance
- Many physicians underestimate their true risk of disability, often believing it’s just 1 in 100—despite data showing a 1 in 5 chance before age 65.
- Most disabilities aren’t caused by accidents, but by common conditions like musculoskeletal disorders, chronic pain, and illness.
- Consumers and even financial advisors share major misperceptions about the likelihood and causes of disability.
- False beliefs like “it won’t happen to me” lead to underinsurance, leaving many high-earning physicians financially exposed.
- Only a specialist who understands physician-specific needs can assess true risk and build a policy that offers real protection.
As Disability Insurance Awareness Month draws to a close, we thought it pertinent to revisit the results of a survey conducted by the Council of Disability Awareness back in 2011. The survey looked into the attitudes and knowledge consumers have over matters related to becoming disabled and then compared them with financial advisors. You probably already know the end of the story – that both consumers and financial advisors perceptions and attitudes bear little resemblance to disability statistics – but it bears repeating. Here we explore physician disability statistics vs. common misperceptions.
The bottom line is that consumers in general, and by extension, physicians as a whole, don’t really believe a disability can happen to them which is typically reflected in their disability income planning or lack thereof. Yet, there are countless stories of physicians who, by underestimating their chances of becoming disabled, found themselves inadequately prepared when it did happen to them.
The Physician Disability Perception Dichotomy
The survey reveals and interesting and not at all surprising dichotomy in attitudes and perceptions of the risk of disability. On the one hand, it shows that more than 40 percent of consumers believe a disability is just as likely to occur at any age, with 7 percent indicating that the most vulnerable are those in their 20s and 30s. And, while nearly 90 percent believe the statistics that show a one in five chance of a disability before the age of 65, they also believe that their own chances of becoming disabled are just one in 100. The “it will never happen to me” syndrome has consumers believing that the “other person’s” risk of disability is greater than theirs which translates into a denial of the real risk of income loss.
The report finds a correlation between this critical misperception, and the misperception on the part of consumers as to the most likely causes of disability. Most consumers – 71 percent – believe that the main causes of disabilities are catastrophic in nature, such as injuries from accidents, or strokes – 45 percent – and cancer – 43 percent. The reality is that most disabilities are triggered by more commonplace conditions such as muscle or bone pain, or chronic diseases. In fact, only 10 percent of disabilities are caused by injuries. The number one cause is musculoskeletal and connective tissue disorders (28 percent). Cancer is second (15 percent). Increasingly, lifestyle choices and personal behaviors that lead to obesity are becoming contributing factors.
The findings by the Council on Disability Awareness seem to indicate that the misperception of disability causes leads to the more serious misperception that “it can’t happen to me” because people generally, think they can avoid activities that lead to accidents. Even though there is a one -in-five chance of anyone becoming disabled, because they don’t engage in dangerous activities or they “watch their step”, most people believe there to be just a one-in-one hundred chance.
Be careful where you get your reality check
The study compared these misperceptions with those of financial advisors and found, not surprisingly, little difference, although financial advisors, in general do advocate incorporating disability income planning into your financial plan. The problem is that few financial advisors, and that would include insurance agents, understand the real risk of loss of income, nor do they have the expertise or resources to guide their high-earning physician clients through the proper assessment of their disability income needs. What too many physicians have found is that their disability income needs are much more complex than most other workers, and that standard, off-the-shelf solutions can’t provide the level of protection they need.
Key Takeaways:
Many physicians are not unlike consumers in general who believe that their chances of become disabled are slim or none. Thus, their level of disability income planning, or the quality of their disability insurance program is not nearly what it needs to be in order to protect their most valuable asset.
Only an independent disability insurance specialist can provide the objectivity in helping physicians understand their disability realities and find the most effective solution.
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