Disability insurance for residents and fellows
Direct answer
Residents and fellows should consider buying an individual policy during training, because you are usually at your healthiest, premiums are based on today’s age, and a future increase option lets you raise the benefit as attending income arrives without new medical underwriting. The benefit you can buy now is limited by your training salary, so plan to increase it later.
Key facts
Check first
- How the policy defines your future specialty
- The future increase option and its deadlines
- Whether a training-program plan follows you
Must-have features
- True own-occupation, specialty language
- Non-cancelable and guaranteed renewable
- Future increase option
- Residual and partial disability rider
Common pitfalls
- Waiting until a health issue is on record
- Relying on the program’s group plan after training
- Missing future increase option deadlines
- A definition that does not name your specialty
What is different for residents and fellows
Training is the point in a medical career where income is lowest and insurability is usually highest. A policy bought now is priced on your current age and health; the same policy bought after a diagnosis may come with exclusions or not be available at all.
The benefit grows with you
Carriers limit how much coverage you can buy based on current income, so a resident can usually buy only part of what an attending needs. A future increase option lets you add coverage later, typically at set times, without proving your health again.
Training plans end with training
Coverage provided by a residency or fellowship program usually ends when the program does, often just as attending income begins. An individual policy continues on its own terms.
Contract language: strong vs weak
Two clauses that both get called “own-occupation.” Read the bold words.
Strong wording
“Totally disabled means that, solely due to injury or sickness, you are unable to perform the material and substantial duties of your occupation. If you have limited your practice to a recognized specialty, that specialty is your occupation. You may work in another occupation and still receive full benefits.”
Pays if you cannot do your own work, even while you earn in another role.
Weak wording
“Totally disabled means you are unable to perform the material duties of your occupation and you are not engaged in any other gainful occupation. After 24 months, totally disabled means you cannot perform any occupation for which you are reasonably suited by education, training, or experience.”
Stops paying once you take other work, and after two years may deny a claim entirely.
Try it with your numbers
Your group LTD gap
- Group plan pays (before tax)
- $12,000
- Estimated after tax at 30%
- $8,400
- Monthly gap to 60% of income
- $9,600
Questions residents and fellows ask
Have your group plan read by someone who reads them daily
Send the summary. You get a written gap analysis within two business days. No call required.