Story at-a-glance
- Both protect your income. Life insurance helps your family if you die; disability insurance protects your paycheck if you can’t work.
- Different payouts. Life pays a tax-free lump sum; disability pays monthly income replacement.
- Doctors need both. One protects your future, the other your present.
- Life is cheaper. Disability costs more but covers the more likely risk — being unable to work.
- Together = full protection. They secure your family, your income, and your peace of mind.
Most doctors know they need insurance to protect their families — but figuring out what kind can get confusing fast.
Two of the most important types of protection you can have are life insurance and disability insurance.
Both protect your income, but in very different ways.
Think of them as two sides of the same coin: one protects your family if you die, and the other protects your income if you can’t work.
Here’s how they compare — and why most physicians and dentists need both.
1. What They Each Protect
- Life Insurance protects your family’s future if you pass away. It replaces your income so your spouse and children can stay in the house, keep up with expenses, and maintain their quality of life.
- Disability Insurance protects you and your income if you get sick or injured and can’t work. It replaces your paycheck so you can keep paying your bills while you recover — or indefinitely, if you can’t return to work.
Simple way to remember:
- Life insurance protects your family if you die.
- Disability insurance protects your family and you while you’re alive.
2. How the Benefits Work
Life Insurance:
You choose a coverage amount — say $2 million.
If you pass away, your beneficiary (usually your spouse) receives that lump sum, tax-free.
They can use it to pay off the mortgage, cover living expenses, fund college, or simply maintain their standard of living.
Disability Insurance:
Instead of one lump sum, it pays a monthly benefit — usually 60–70% of your income — for as long as you’re unable to work.
This money replaces your paycheck, so your bills, loans, and savings goals stay on track even if your income stops.
3. When Each Type Matters Most
Life Insurance:
- You have a spouse or partner who depends on your income.
- You have kids or plan to soon.
- You have a mortgage, student loans, or practice debt.
- You want to leave a financial safety net or legacy.
Disability Insurance:
- Your income supports your household (which applies to almost every doctor).
- You’re still paying off student loans.
- You’re in a physically demanding specialty — surgery, dentistry, or emergency medicine.
- You rely on your hands, eyes, or back to do your job.
4. The Cost Difference
Life insurance is much less expensive than disability insurance because the risk of death in your 30s or 40s is relatively low. A healthy doctor might pay $30–$70 a month for a $2 million, 20-year term policy.
Disability insurance costs more — typically 1–3% of your annual income. If you earn $250,000, that’s about $200–$600 a month.
But it’s protecting something much more likely to happen — a long-term illness or injury that stops you from working.
In fact, according to the Social Security Administration, 1 in 4 people will experience a disability before age 65.
5. Common Misconceptions
“My employer already provides both.”
Maybe — but read the fine print. Group life and disability insurance are often limited and not portable. If you leave that job, the coverage usually ends.
“I’ll buy it later.”
Waiting might feel safe now, but it’s risky. Insurance depends on your age and health. A new medical issue could raise your premiums — or disqualify you entirely.
“I’m healthy, so I don’t need it yet.”
That’s exactly why now is the best time to get it. You’ll lock in lower rates and secure coverage before anything changes.
6. How They Work Together
The smartest financial protection plan includes both.
Here’s why:
- Disability insurance keeps your paycheck coming if you can’t work.
- Life insurance replaces that paycheck permanently if you die.
Together, they create complete protection — no gaps, no guesswork.
It’s like having a seatbelt and an airbag.
You hope you’ll never need them, but if you do, they’ll save everything that matters.
7. A Simple Way to Decide How Much You Need
For Life Insurance:
- Aim for 10–15 times your annual income.
- Enough to replace your income, pay off debt, and fund your family’s future.
For Disability Insurance:
- Aim for 60–70% of your gross monthly income in total benefits (including employer coverage).
- Choose an own-occupation policy so you’re covered if you can’t do the specific duties of your specialty.
8. Real-World Example
Dr. Reyes, a 37-year-old dentist, earns $240,000 a year. He has two kids and a $700,000 mortgage.
He carries $3 million in term life insurance to protect his family and a $12,000/month own-occupation disability policy to protect his income.
If something happens to him, his family’s financial life stays stable — no panic, no rush decisions.
That’s real protection.
9. When to Review or Update Your Coverage
Check your life and disability policies every year — especially if you’ve had:
- A raise or career change
- Marriage, divorce, or children
- A new home or larger loan
- Health changes
Updating coverage ensures your protection keeps pace with your life.
The Bottom Line
Life insurance protects your family’s future. Disability insurance protects your present.
One replaces your income if you’re gone. The other replaces it if you can’t work.
Together, they give you and your family complete peace of mind — no matter what life brings.
You’ve worked too hard to leave that to chance.
Next Step: Protect Your Income and Your Family
Our team helps physicians and dentists find the best life and disability coverage — customized for your specialty, income, and stage of life.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
