Story at-a-glance
- Price alone can fool you — cheap plans often miss key protections.
- The definition of disability matters most and can change your whole claim.
- Not all companies are the same, and some weaken coverage for doctors.
- Group and association plans have big gaps and should not replace a private plan.
- Good riders and strong company ratings help keep your income safe for life.
Shopping for disability insurance can feel confusing. One company says they have the “best rates.” Another says they have the “strongest coverage.” And every agent seems to tell you something different.
So how do you know who to trust — and what to look out for? Here are the most common pitfalls I see doctors run into when comparing disability insurance.
1. Comparing Only the Price
This is the biggest mistake. It’s easy to look at two quotes and assume the cheaper one is better. But disability insurance isn’t a commodity like gasoline — what’s inside the policy matters.
A cheaper policy might have:
- A weaker definition of “disability”
- No partial/residual disability benefit
- No cost-of-living adjustment
- Limited future increase options
If a disability prevents you from doing your specific specialty, those missing features could cost you far more than the few dollars you saved on premiums.
2. Overlooking the Definition of Disability
Every good policy starts here. Look for true own-occupation coverage — which means you could receive benefits if an injury or illness prevents you from doing the material and substantial duties of your occupation, even if you’re working in another job or field.
Some policies water this down to “any occupation” — meaning you might only qualify if you can’t work at all. That’s a huge difference for doctors who’ve trained their whole lives for one specific skill set.
3. Assuming All Companies Are Equal
They’re not. Some insurers target general consumers, while others specialize in physicians and dentists.
The top companies — Guardian, MassMutual, and Principal — consistently offer strong own-occupation definitions, solid financial strength, and flexible riders.
Other companies may advertise lower rates but include restrictive language, limited benefits, or weaker financial ratings. If you ever need to file a claim, you’ll be glad you chose a company that’s known for standing behind doctors.
4. Overlooking the Fine Print in Group and Association Coverage
This one catches a lot of doctors off guard. Many employers and professional associations offer group disability coverage — and it’s easy to think that’s all you need.
Here’s what to know:
Employer Group Plans
- They’re often cheap or even free, but coverage ends when you leave your job.
- They lack a true own-occupation definition, which means you may only qualify for benefits if you can’t work at all.
- Benefits are offset by Social Security, workers comp and any income earned in another occupation. What’s left over is then usually taxable, which reduces your take-home amount even further.
- Monthly benefit caps also often leave physicians underinsured.
Group plans are a good foundation, but they’re rarely enough to protect a doctor’s income.
Association-Sponsored Plans
- Rates start low, but they increase every five years, becoming expensive later on.
- Terms and premiums can change anytime — these policies are not guaranteed renewable.
- Coverage is limited, and features are less robust than an individual policy.
In short, group and association plans can supplement your protection — but they should never replace a strong, personally owned individual policy that stays with you wherever your career goes.
5. Ignoring Riders and Options
The riders (or “add-ons”) can make a big difference in how your policy works over time.
Important ones to look for include:
- Residual Disability Rider: Pays partial benefits if you can still work but earn less due to injury or illness.
- Future Purchase Option: Lets you increase coverage later without new medical exams.
- Cost-of-Living Adjustment (COLA): Increases your benefit each year during a long-term claim to keep up with inflation.
These aren’t “extras.” They’re key features that keep your policy strong as your career grows.
6. Ignoring Financial Strength Ratings
When you buy disability insurance, you’re buying a promise — that your insurer will still be there 20 or 30 years from now if you ever need to file a claim. Look for companies with a COMDEX rating over 90. A lower-rated company may charge less, but it’s not worth the uncertainty down the road.
7. Not Working With a True Specialist
There are thousands of insurance agents — but only a few truly understand physician disability insurance. Working with a specialist who represents multiple top carriers can save you time, money, and stress. They’ll help you compare definitions, discounts, and benefits specific to your medical specialty.
Bottom Line
Disability insurance isn’t about finding the cheapest deal — it’s about protecting your income the right way. The key is to compare policies carefully and focus on what’s inside, not just what it costs.
At DoctorDisability, we’ve helped more than 25,000 physicians and dentists find the right coverage — at the best available discounts — from the top carriers in the country.
Click below to request your free quotes and side-by-side comparison.
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