Disability Insurance for Physicians

Doctors learn about the need for physician’s disability insurance early in their residencies. With years of training, high education costs, and a future that rests on the ability to make an income in a specific specialty, doctors are the most frequent buyers of individual disability insurance.

Physician’s disability insurance contracts should contain the following features:

  1. “True” own occupation definition of disability, which will pay the insured a disability benefit if they are unable to perform the duties of their specialty, even if they are engaged in another occupation by their choice. This is the strongest definition of disability available.
  2. A future increase benefit that enables the insured to purchase additional doctors’ disability insurance with no medical underwriting as their incomes increase.

DI Sales Tips for Doctor’s Disability Insurance

To maximize disability income protection for resident physicians, insure them with 2 disability income carriers. When advisors take this approach with resident physicians, they secure the maximum amount of future purchase option, which allows the client to purchase additional DI coverage without medical underwriting as his or her income increases throughout the working years.

Many carriers who market to physicians offer discounts to resident physician groups. Some carriers even offer guaranteed standard issue physician’s disability insurance to pre-approved resident physician groups.

Talk to your disability income specialist at Source Brokerage, Inc. We can direct you to the best carriers for physician’s disability insurance, help you design the plan to maximize protection, and assist you in establishing association and multi-life premium discounts.


When talking with physicians, about disability insurance for doctors, the following small business owner products may also be appropriate:


Business Overhead Expense

Product Overview
This small business disability insurance product will pay the expenses of a client’s small business in the event the owner becomes too sick or injured to work for a period of time and as a result the company suffers a loss of revenue. The policy is designed to keep a small business running for a short time until the owner is back to work. Benefit periods are between 12-24 months.

The policy typically pays for any expenses allowable on the business tax return, including the salary for a temporary employee to replace the disabled owner. Income taxes and cost of inventory are generally not reimbursed under the plan.

Disability Buy/Sell

Product Overview
This small business disability insurance product is designed for small business owners who have partners or several owners. It allows the company to continue to operate if one of the owners becomes too sick or injured to work. The policy provides the cash for the other owner/owners to purchase the disabled owners share of the business. The benefit may be paid out as a lump sum or a monthly payment for as long as five years. Waiting periods can be from 1-2 years.

Multi-life/List Bill

Product Overview
Three or more individual disability income insurance policies placed in a year on individuals working for the same employer obtain a 10% premium discount and gender neutral rates. Gender neutral rates are very valuable to females-it can reduce premium up to 40%.

Target your small business owners. It is a great incentive for females. Encourage your clients to recommend others in their workplace. Once you point out the premium discount, they will be happy to share the names. It’s a win-win for everyone.

Guaranteed Standard Issue

Product Overview
No medical underwriting. Just a census required. Carve outs for executives. Excellent opportunity for employers to cover the LTD gap for the higher paid executives. Voluntary for groups of 15 or more, 30% participation required. Mandatory for groups of 5. Ten percent discount and gender neutral rates apply.

Target professional organizations with large executive population such as architects, attorneys, accountants, engineers, etc….Offer them a way to insure up to 75% of their income.