Key Takeaways:
- When should physicians consider buying disability insurance?
Physicians should understand their disability insurance options during training because health, age, specialty, state, and available discounts can affect future eligibility and pricing. - Why buy disability insurance during residency or fellowship?
Purchasing coverage earlier may allow physicians to secure coverage based on their current health profile, younger age, specialty classification, and available training discounts. - Does health history affect physician disability insurance?
Yes. A new diagnosis, ongoing treatment, or medication change can affect eligibility, pricing, or how a disability insurance policy is structured. - Does age affect disability insurance premiums?
Yes. Age is an important pricing factor, and coverage purchased at a younger age can establish lower rates for that portion of the policy. - Can physicians increase disability insurance later?
Certain policies include future increase options that can allow eligible physicians to increase coverage as their income grows without repeating medical underwriting.
When should physicians buy disability insurance?
Many doctors assume they should wait until they finish residency or fellowship, earn an attending salary, or feel more financially established.
However, the timing of purchasing physician disability insurance can affect eligibility, premiums, available discounts, and future coverage options.
Health history, age, medical specialty, state of residence, and gender can all influence disability insurance pricing. Understanding these factors early can help residents, fellows, and physicians make informed decisions about protecting their future income.
Why Should Physicians Consider Disability Insurance During Residency?
One significant advantage of evaluating disability insurance during residency or fellowship is the opportunity to secure coverage based on your circumstances today.
Health history can change unexpectedly. Even seemingly small developments, including a new diagnosis, medication, or ongoing treatment, may affect how an insurance company evaluates an application.
Buying earlier can also provide access to discounts that may be particularly favorable during medical training. Some physicians may also qualify for affiliation discounts through an employer or professional association.
How Does Age Affect Physician Disability Insurance Costs?
Age can directly affect physician disability insurance premiums.
The transcript explains that rates generally increase as a physician gets older. When an initial amount of coverage is purchased at a younger age, the pricing for that coverage can be locked in.
Later, when a physician becomes an attending and qualifies for additional coverage, those additional benefits may be purchased based on the physician’s attained age at that time. This creates a layered approach: earlier coverage retains its original rate while newly purchased coverage reflects the later age.
Does Medical Specialty Affect Disability Insurance Pricing?
Yes. A physician’s medical specialty or occupational classification can affect disability insurance costs.
Higher-risk specialties can have higher premiums. Depending on the contract and specialty, securing coverage during training may establish an occupational classification before a physician transitions into a final specialty or subspecialty.
Contract language also matters. True specialty coverage focuses on whether an illness or injury prevents the physician from performing the material and substantial duties of the specific occupation they were engaged in at the time of claim.
Does Where a Physician Lives Affect Disability Insurance Rates?
Yes. Disability insurance rates can vary by state.
The transcript notes that some states have higher pricing than others. This becomes particularly important for residents and fellows who expect to relocate when they accept their first attending position.
Depending on the policy and purchase option, future increases may use different state pricing rules. Considering future relocation when designing the original policy can therefore be an important part of long-term disability insurance planning.
Why Are Future Increase Options Important for Physicians?
Residents and fellows commonly purchase disability insurance before reaching their peak earning years. That makes future increase options especially valuable.
Certain policies allow physicians to increase their disability insurance coverage later as their income grows without undergoing medical underwriting again.
Buying coverage earlier can therefore accomplish two goals: establishing income protection today and preserving the ability to obtain additional coverage in the future.
From Scott & Amber’s Desk
So, when should physicians buy disability insurance? Rather than focusing only on when your income becomes high enough, consider what you may be able to secure today.
Your health, age, medical specialty, state of residence, available discounts, and future increase options can all influence your disability insurance strategy.
Understanding those variables during residency or fellowship can help you make an informed decision before your circumstances, and potentially your options change.
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.
If you would like to request physician disability insurance quotes, click here.
You can email us: info@mddisabilityquotes.com
Call 713-966-3932 (9 AM-5 PM Central)
Text 281-770-8080 at your convenience.
Episode transcript
Published 15 May 2026. Transcript generated automatically from the episode audio; it may contain errors.
Read the full transcript (1,392 words)
Amber Stitt [00:00:00]:
Welcome to The Responsible Resident. I'm Amber Stitt. This podcast takes a common sense approach to financial decisions for physicians, breaking down complex topics into something clear, practical, and usable. Because you shouldn't have to have a finance degree to build financial freedom. So far we've covered what disability insurance is and how these contracts work. Now the question becomes, "When should you actually buy it?" At a recent White Coat Investor conference, I had the opportunity to meet a financial advisor who shared her husband's story with us. One morning her husband was in the kitchen with their children getting ready for the day. Suddenly, she noticed him moving strangely, twirling with his hands in the air.
Amber Stitt [00:00:43]:
On a normal day, that might have looked like he was playing with the kids, but something felt off. The movements were awkward and she immediately knew something wasn't right. He then fell face forward to the ground. She called 911 and began performing operator assisted CPR. He was unresponsive as he was transported to the hospital. Miraculously, he was revived. What followed was a long and complex medical journey. He was diagnosed with epileptic seizures, had suffered a serious back injury from the fall, and faced significant ongoing pain.
Amber Stitt [00:01:20]:
There have been years of treatment and progress, but he is not the same today. In their situation, both his group disability plan and his individual policy paid benefits. He has since continued his education and pursued other academic paths, but he is no longer practicing. What stood out to me most was the flexibility his coverage provided. His wife was able to be present with their children, support his recovery, and continue building her financial planning practice. That income protection gave them options at a time when everything else felt uncertain. And that's the part that matters. He had his plans in place early.
Amber Stitt [00:01:58]:
So back to the question, "When should you actually buy it?" Most physicians assume the answer is later, once income increases, or once you feel more established, or once you have more time after training so hard. But the reality is your options, your eligibility, and your pricing are based on today, not later. And that's what makes timing so important. Let's break that down: First, your health when you're in training, your health history is often simpler. Often, but not always, you may not yet have developed conditions that could affect how an insurance company evaluates your risk.
Amber Stitt [00:02:36]:
Even small changes like a new diagnosis, ongoing treatment, or changes in medication can impact your eligibility, your pricing, or how your policy is structured. But beyond health, there are several other factors that influence your cost and your options. Your specialty is one of them. The higher risk your specialty classification, the more expensive your coverage can be. Purchasing your coverage at a lower priced specialty like internal medicine can keep the costs lower for the lifetime of your contract. Some specialties, like anesthesiology will just have their occupation classification established from the beginning, so as you move into your final specialty, or subspecialty, those new material duties become part of your contract without having to change pricing for the higher occupation due to specialized training. Also, please note that true specialty language will work if you cannot perform the material and substantial duties of the specific occupation you were engaged in at the time of claim. It is definitely a perk to secure a plan earlier while healthy since the coverage follows you.
Amber Stitt [00:03:43]:
This section is to let you see the impact of costs over time and starting earlier gives you more money in your pocket longer term. I'd like to take a second to tell you about a Free Medical Professionals Blueprint that I created with you in mind. At some point in your career, you realize it's not just about making more money, it's about making decisions that actually support your life. That's exactly why I created The Pathways Perspective for Physicians. It's a simple, non technical framework to help you think through your career, your money, your risk, and how everything connects as your life evolves. You shouldn't have to have a finance degree to build financial freedom. You don't need to have everything figured out, you just need a place to start. You can download the Free Medical Professionals Blueprint at: StittStrategies.com/Blueprint.
Amber Stitt [00:04:38]:
Your age is another factor. The younger you are when you purchase a policy, the lower your rates and those rates are locked in for the life of the contract. Your initial contract will most likely be set up around $5,000 per monthly coverage. For example, if you lock that in at age 28, that will never change in price. There is about a 3% to 5% for each year you are older. When you purchase additional coverage as an attending, your additional units of coverage purchased during your increase will be at the attained age of purchase. This additional amount is layered onto the original that had the rate lock back at age 28. In this example, it is always better to buy as much as you can at the youngest age. Your state of residence also plays a role.
Amber Stitt [00:05:27]:
Some states are simply more expensive than others. For example, California is currently one of the highest cost states, while many Midwest states tend to be more favorable from a pricing standpoint. There is a way to be forward thinking on future costs, too. Depending on the purchase option selected, some contracts will blend up, or down, if you move and purchase more in a different state. This is a big part of the contract design that I do with my clients. We want to activate coverage early while healthy, but also consider future variables, too. Some contracts will go with current resident address when purchasing the additional coverage. As an example, this is very important for those heading west as an attending. Your gender is also factored into pricing.
Amber Stitt [00:06:14]:
Women statistically experience longer disability durations which can result in higher premiums. My female clients will spend more than their male colleagues, so any savings that we can factor-in early will be beneficial to financial freedom later. And then there are discounts which are often most accessible during training or early in your career. Outside of training, you still have options to accept discounts, although they may be lower than the resident discount. There could be an affiliation discount through your employer and associations, even for your private disability policy. So when you step back and look at this, timing isn't just about your health, it's about locking in a combination of factors. Your age, your pricing class, available discounts, and even your state specific rates.
Amber Stitt [00:07:05]:
Buying earlier allows you to lock in your health profile, it allows you to lock in your rates based on your current age. And just as importantly, it it gives you access to future increase options so you can grow your coverage later without going through medical underwriting again. That flexibility is one of the biggest advantages you have during training. This doesn't mean you need to rush into a decision, but it does mean you should understand your options before they change. Because waiting is not a neutral decision, it's a decision that can reduce your options and increase your costs over time. A better way to think about this is, instead of asking, "When should I buy?" Ask, "What can I lock in today that protects my future options?" In the next episode, we'll take this one step further and walk through the medical underwriting process, what's actually reviewed at the time of application, and how you can be proactive before you ever submit anything. If this episode helped you think a little more clearly about your next step. That's the goal.
Amber Stitt [00:08:11]:
You don't need to have everything figured out, but you do need to take ownership and take a meaningful step forward today. Thanks for listening to The Responsible Resident. As a reminder, this podcast is for general educational purposes only. It is not legal, tax or individualized financial advice, and coverage options will vary based on your personal situation.
