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- Check your policy each January to make sure it still fits your income and life.
- Compare your benefit to your income. If it’s under 60 percent, it needs a boost.
- Look at your riders like COLA, residual, and increase options.
- Review your job’s group plan and fill the gaps with own-occ coverage.
- Make updates while you’re healthy so you keep full access to options.
The start of a new year is the perfect time to check in on your financial protection — especially your disability insurance.
Your income changes.
Your life changes.
And your coverage should change with it.
A quick 10-minute review each January can make sure your policy still fits your income, your family, and your goals.
Here’s a simple step-by-step guide to walk you through it.
Step 1: Find Your Policy and Review the Basics
Start by pulling out your most recent policy summary or in-force illustration. If you bought your policy years ago, this may be sitting in a file or a digital folder from your agent.
Check these basic details:
- Definition of disability
- Monthly benefit amount
- Benefit period (how long benefits would last)
- Waiting period (how long before payments start)
- Riders included (extra features like cost-of-living or future increase options)
These details are the backbone of your coverage. Knowing them helps you see if your protection still matches your life.
Step 2: Compare Your Coverage to Your Current Income
Disability insurance is designed to replace a portion of your income — typically 60–70%.
But many doctors buy coverage early in their careers and never update it. So as income grows, the benefit stays the same — leaving a big gap.
Example:
You bought a $6,000/month policy as a resident. Now you’re earning $300,000 a year.
That policy only replaces about 24% of your income.
If you were disabled tomorrow, that shortfall would hit hard.
What to Do:
- Review your most recent tax return or paystub.
- Compare your current monthly benefit to your current income.
- If the percentage is under 60%, it’s time to explore a benefit increase.
Tip: Many policies include a Benefit Purchase Rider or Future Increase Option that lets you raise coverage without new medical underwriting.
Step 3: Check Your Riders and Options
The riders on your policy determine how flexible and powerful your coverage is.
Here’s what to look for:
Future Increase Rider (or Benefit Purchase Option):
Let’s you increase your monthly benefit as your income grows — no new medical exam.
Residual (Partial) Disability Rider:
Pays benefits if you can still work part-time but lose part of your income due to illness or injury.
Cost of Living Adjustment (COLA) Rider:
Increases your benefit each year during a long-term claim to keep up with inflation.
If you’re missing one or more of these, talk to your advisor about adding them.
The cost is often small compared to the long-term value.
Step 4: Review Your Employer Coverage (If You Have One)
If you have disability insurance through your employer, it’s worth a closer look.
Most employer plans:
- Cover only 60% of base salary (not bonuses or side income)
- Are taxable if the employer pays the premium
- Use an “any-occupation” definition
- End when you leave that job
That’s why a private, own-occupation policy is so important — it goes with you no matter where you work.
Example:
Dr. Alvarez relied on her hospital’s group plan. When she switched hospitals, she discovered she had zero coverage for 3 months — a risk she never realized she was taking.
Step 5: Check Your Premium and Renewal Status
Confirm your policy is non-cancelable and guaranteed renewable.
That means the insurance company can’t change your rates or cancel your policy as long as you pay on time.
Also, check how your premiums are structured:
- Level premium: stays the same for life.
- Graded premium: starts lower and increases over time.
If your income has grown, now may be a good time to switch to a level premium policy that locks in a fixed rate for the long term.
Step 6: Make Updates While You’re Healthy
Here’s the most important part of your January review:
You can only make changes while you’re healthy.
Once you develop a medical issue — even a mild one — your ability to increase coverage or add riders can be limited or denied.
That’s why January is the best time to act — before another busy year begins.
It’s like your annual physical for your financial health.
Step 7: Ask for a Policy Review
You don’t have to figure it all out alone. A quick 10–15 minute review with a licensed advisor can confirm if you’re fully protected or if there are gaps.
Your advisor can help you:
- Compare your policy to your current income
- Explain your riders and options
- Request increase offers from your carrier
- Explore discounts if you’ve changed employers or hospitals
The Bottom Line
Your disability insurance is one of the most important financial tools you own — but it only works if it keeps up with your life.
Every January, take a few minutes to make sure your coverage still fits your income, your career, and your family’s needs.
It’s a simple habit that can save you from major stress down the road.
Next Step: Get a Free Policy Review
Not sure if your coverage is still enough?
We’ll help you review your current policy, explain your increase options, and compare quotes from the top physician-specialized insurers.
Request your free disability insurance review today.
Start the year with confidence — knowing your income is fully protected, no matter what the year brings.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
