Could Your Disability Insurance Cost You $100,000 More?
I see residents do this all the time.
They compare two disability insurance policies at $5,000 a month of benefit and one costs $30 or $50 more.
No big deal. It’s only $30–$50, right?
But is it really?
The problem is you’re probably not going to own $5,000 of disability insurance forever.
If you’re eventually earning $400,000, $500,000 or more, you may end up with $20,000, $25,000 or even $30,000 a month of disability coverage.
Now that $30–$50 difference starts to matter.
If one company’s pricing is $50 more on $5,000 of coverage, what happens when you’re carrying four, five or six times that amount?
That difference could eventually be $200–$300 a month.
At $300 a month, that’s $3,600 a year.
Over 30 years, that’s $108,000 in additional premiums.
Now, I’m not saying the math always works exactly that way. It doesn’t. Future pricing can vary based on the company, your age, state, occupation and how those future increases are priced.
But that’s exactly why I think you should look at it.
I’m also not saying buy the cheapest disability policy. Contract language comes first. Saving money on a policy that doesn’t properly protect you in your medical specialty isn’t a good deal.
But when I’m comparing two good contracts for a resident, I don’t just look at what each company charges for the first $5,000.
I want to know what happens to the cost as we increase the coverage over time.
Because the $50 difference you’re looking at today isn’t necessarily a $50 decision.
Over the life of the policy, it could be a $100,000 decision.
From Scott & Amber’s Desk
Your resident or fellowship disability insurance purchase is more than a decision about today’s premium. The coverage you purchase now may become the foundation of a much larger disability insurance portfolio as your physician income increases.
Compare contract language first, then examine how each carrier prices potential future coverage increases. A $50 monthly difference today may represent a substantially larger financial decision over the life of your policy.
Every article in the MD Disability Quotes Knowledge Center is written with one purpose: to help physicians understand insurance contracts before they ever need to rely on them.
To take the next step and build a strategy that supports your career and financial future, download the FREE Medical Professionals Blueprint here.
About MD Disability Quotes
MD Disability Quotes is a nationwide disability insurance advisory firm specializing in income protection for physicians, dentists, business owners, and other high-income professionals.
Founded by Scott Nelson-Archer and Amber Stitt, the firm brings more than 45 years of combined experience helping clients evaluate disability insurance contracts, navigate underwriting, and design income protection strategies tailored to specialized careers.
Scott and Amber are the longest-tenured disability insurance experts featured by White Coat Investor. Their education-first approach has helped thousands of physicians better understand disability insurance throughout medical school, residency, fellowship, and practice.
Whether you’re reviewing an existing policy or exploring coverage for the first time, MD Disability Quotes is committed to helping you make informed decisions that protect your ability to earn an income.
If you would like to schedule a disability insurance strategy session, click here.
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