As a resident physician, you’ve got plenty on your plate—long shifts, mounting student loans, and the pressures of training. With so much going on, it’s easy to push financial planning to the back burner, especially when it comes to disability insurance. Many residents think they can wait until after training to get coverage. After all, isn’t that something to worry about when you’re making attending-level income?
Unfortunately, waiting can be a costly mistake. Here’s why locking in disability insurance during residency is one of the smartest financial moves you can make.
1. Your Health Today Determines Your Insurability Tomorrow
Disability insurance is medically underwritten, which means insurers evaluate your health before offering coverage. If you develop a medical condition—no matter how minor—it could lead to higher premiums, exclusions, or even denial of coverage.
Think about how unpredictable health can be. If you were diagnosed with a chronic illness, suffered an injury, or even developed something as common as anxiety or back pain, your ability to get full coverage could be compromised. By applying while you’re young and healthy, you secure coverage before any potential health issues arise.
2. You Lock in Lower Rates by Applying Early
Age plays a major role in disability insurance premiums. The younger you are when you apply, the lower your monthly cost. Every year you wait, premiums increase simply because you’re older—and that’s before factoring in any health changes.
For example, a healthy 27-year-old resident may lock in a policy for $150 per month, while a 32-year-old attending applying for the same coverage might pay $250 or more per month. Over a career, that difference could add up to tens of thousands of dollars in extra premiums.
3. Your Income Is at Risk—Even in Residency
Many residents assume disability insurance is only necessary once they start earning a high attending salary. But even as a resident, your income is critical. If you were unable to work due to illness or injury, how would you cover your rent, student loans, and living expenses?
Most hospitals offer group disability insurance, but these policies often provide limited benefits. They may only cover 60% of your income (before taxes!), and they may not have a true own-occupation definition—meaning you might not get benefits if you can still work in a different field.
A personal disability policy ensures you receive tax-free income replacement based on your specific specialty, even if you can’t practice medicine in the way you trained.
4. Guaranteed Standard Issue (GSI) Policies Are Only Available in Training
Many residency programs offer a Guaranteed Standard Issue (GSI) disability insurance option, which allows residents to get a policy without medical underwriting. That means no medical exams, no health questions, and no risk of exclusions for pre-existing conditions.
This is a huge advantage, especially if you have any health concerns. But here’s the catch: GSI policies are only available while you’re in training. If you wait until after residency, you’ll need to go through full underwriting—and any new medical conditions could impact your coverage options.
5. You Can Increase Your Coverage Later Without Medical Exams
Most disability policies for residents come with a Future Increase Option (FIO) rider. This allows you to increase your coverage as your income grows—without having to go through medical underwriting again.
For example, let’s say you buy a $5,000/month benefit during residency. With an FIO rider, when you become an attending making a higher salary, you can increase your benefit to $15,000/month or more—without any new medical questions or exams.
By getting your policy now, you lock in your health status and guarantee your ability to increase coverage later, no matter what happens.
6. Employer Coverage Has Gaps
Some residents think their hospital-provided disability insurance is enough. However, group policies often have significant drawbacks:
- Benefits are taxable since the employer pays the premiums.
- Not always own-occupation—meaning you might not get benefits if you can still work in some capacity.
- Coverage ends when you change jobs, leaving you uninsured during transitions.
A private, own-occupation disability policy follows you wherever you go, giving you consistent, reliable protection.
7. You’re More Likely to Become Disabled Than You Think
Most physicians don’t think about disability affecting their careers, but the statistics are eye-opening:
- 1 in 4 people will become disabled before retirement age.
- Physicians are at higher risk due to musculoskeletal injuries, neurological conditions, and mental health challenges.
- Disability claims for doctors can last years or even decades, making personal coverage essential.
If you suffered a disability early in your career, the financial impact could be devastating. Disability insurance protects your future earning potential—the biggest asset you have.
8. Waiting Can Lead to Coverage Gaps
If you wait until after residency, you’ll face a period where you might not have coverage at all. Many attending physicians experience a gap between the end of residency and starting their first job. If something happens during that time, you could be left completely uninsured.
Applying while in training ensures continuous coverage as you transition into practice.
Final Thoughts: The Best Time to Get Disability Insurance Is Now
Delaying disability insurance may seem like a way to save money now, but in the long run, it could cost you much more in higher premiums, limited coverage, or the inability to get a policy at all.
By getting a policy during residency, you:
- Lock in lower rates while you’re young.
- Secure coverage before any health issues arise.
- Guarantee the ability to increase benefits later.
- Protect your income now and in the future.
As a physician, your income is your greatest asset. Protect it now, while you still can.
If you have questions or want to explore your options, talk to a disability insurance specialist who understands the needs of residents and physicians. Don’t wait until it’s too late—your future self will thank you.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
