Story at-a-glance
- Most doctors and dentists should aim to replace 60–70% of their income with disability insurance.
- The amount you qualify for depends on your income, age, and other coverage.
- Start with what you can afford and build over time.
- Riders like the Benefit Increase or Future Purchase Option let you grow your coverage as your income grows.
Why It Matters
You’ve worked hard to build a high-income career. But if an injury or illness keeps you from working, how long could you go without a paycheck?
Disability insurance protects your income. But how much is enough?
Let’s break it down.
Start With the Basics
Most disability policies will cover up to 60–70% of your income. That’s enough to cover your essential expenses—like housing, student loans, food, insurance, and savings—without replacing every dollar.
Why not 100%?
Because disability benefits are tax-free if you pay the premium with after tax dollars, and insurers want to encourage recovery and return to work.
What Should You Cover?
Ask yourself:
- Could I still pay my student loans and mortgage without my income?
- Do I have a spouse or kids depending on me?
- How long would my savings last if I had no paycheck?
If the answer to any of these questions is “not long,” you’ll want to maximize your coverage.
For most physicians and dentists, that means starting with as much as you can qualify for now—and planning to increase it later as your income grows.
Your Starting Amount May Be Lower
If you’re in residency or fellowship, your monthly benefit may start smaller (around $5,000 – $7,500/month). But that’s okay.
What matters is locking in your policy early—with the right riders—so you can build your coverage as your career advances.
Use Riders to Grow Your Coverage
Most top-tier disability policies include increase options. These riders let you add more coverage in the future—without having to go through medical underwriting again.
Common names for these riders include:
- Benefit Increase Rider (BIR)
- Future Purchase Option (FPO)
- Benefit Update Rider
These allow your coverage to grow with your income—even if your health changes.
Don’t Forget About Group Coverage
If your employer provides group disability coverage, great—but be careful. Group policies:
- Usually cover a smaller portion of income
- Are often taxed if premiums are employer-paid
- Are not be true own-occupation
- Typically don’t follow you if you change jobs
- Can be changed or cancelled by the insurance company or your employer at any time
That’s why an individual policy is key—even if you already have group benefits.
Final Thought
How much disability insurance do you need? Enough to keep your life on track—even if your career gets knocked off course.
Start with what you qualify for now, and build it over time with the right riders.
It’s not about replacing every dollar—it’s about protecting your lifestyle, your goals, and your future.
Want to see how much coverage you qualify for? Click below to get a free quote.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
