What is own-occupation disability coverage?

It pays benefits if you can’t perform the duties of your specific medical specialty, even if you’re able to work in another field.

Are disability insurance benefits taxable for physicians?

If you pay premiums personally with after-tax dollars, your benefits are generally tax-free. If your employer pays, they may be taxable.

How much coverage do doctors typically need?

Most physicians aim to replace 60–70% of their gross income, especially those with large fixed expenses or families.

Can I get disability coverage as a resident or fellow?

Yes. Many carriers offer discounted rates and future increase options for medical residents and fellows.

What if I already have group coverage?

Group plans often have low caps and limited definitions. A personal or high-limit policy ensures full income replacement and flexibility.

Disability Income Insurance for Doctors and Physicians

Disability income insurance for doctors and physicians is one of the most important forms of financial protection a medical professional can own. Your income depends on your ability to perform highly specialized procedures—and if injury or illness prevents that, your livelihood could change overnight. At Diversified Insurance Brokers, we specialize in helping physicians, surgeons, and healthcare professionals secure own-occupation disability coverage that preserves income, lifestyle, and career independence.

Why Physicians Need Disability Income Insurance

After years of education, training, and investment, physicians build their financial future on their ability to practice medicine. A disabling condition can interrupt that path and lead to substantial income loss. Standard employer coverage is rarely enough—it may only cover 60% of income and is often taxable. For high-earning specialists, that leaves a large gap.

Private disability income insurance ensures that if you can’t perform your medical duties—whether surgery, diagnostics, or patient care—you’ll still receive a tax-free income stream to maintain your financial security and family lifestyle.

What Makes “Own-Occupation” Coverage Essential

For physicians, “own-occupation” is the gold standard of disability protection. It means that if an illness or injury prevents you from performing the specific duties of your medical specialty, you can still receive full benefits—even if you’re able to work in another capacity.

Example: A surgeon who develops a hand tremor and can no longer operate would still qualify for full disability benefits, even if they later teach or consult in the medical field.
This type of policy ensures you’re covered for your exact occupation—not just any job.

At Diversified Insurance Brokers, we help clients compare true own-occupation definitions across multiple carriers to ensure you get the most favorable terms available.

High-Limit Disability Options for Medical Professionals

Physicians often earn above the thresholds covered by standard group or individual disability policies. High-limit disability insurance bridges that gap—providing additional protection for those with incomes exceeding $500,000 annually. This coverage can stack on top of existing employer or association plans to bring total coverage up to 65–75% of pre-disability income.

Monthly benefits up to $100,000 or more for specialists and high-income earners
Custom elimination periods from 30 to 180 days
Flexible benefit durations—5, 10, or up to age 67
Optional lump-sum or residual benefit riders

These options are especially valuable for surgeons, anesthesiologists, dentists, and other specialists whose income exceeds standard plan limits. Explore how High Income Disability Insurance can complement your coverage.

Tax Treatment for Physicians and Practice Owners

For employed physicians, individual disability benefits are typically tax-free if premiums are paid with after-tax dollars. For practice owners, tax treatment depends on how the policy is structured:

Individually Owned Policies: Premiums are paid personally and benefits are tax-free.
Corporately Owned Policies: If your practice pays the premiums, benefits may be taxable, but premiums can sometimes be deducted as a business expense.
Buy-Sell or Key Person Plans: Structured to protect the practice’s financial continuity in the event of disability.

We help medical professionals design coverage that aligns with both income needs and tax efficiency.

Specialized Plans for Surgeons, Dentists, and Healthcare Executives

Our advisors work with carriers that understand the unique risks of medical professions. Whether you’re a surgeon needing true own-occupation coverage, a dentist starting a new practice, or a hospital executive with performance-based income, we can design a plan that fits your specialty.

Additional Riders and Enhancements

Residual Disability Rider: Provides partial benefits if you experience a loss of income due to reduced capacity.
Future Increase Option: Lets you increase benefits later as your income grows—without new medical underwriting.
Cost-of-Living Adjustment (COLA): Keeps your benefit aligned with inflation over time.
Catastrophic Disability Rider: Provides an additional benefit for severe disabilities requiring daily living assistance.

Get Expert Help Comparing Physician Disability Plans

At Diversified Insurance Brokers, we represent over 75 A-rated carriers and specialize in helping physicians find the most comprehensive protection. Whether you’re an attending, resident, or private practice owner, we’ll help you customize a plan with the right definitions, riders, and coverage limits for your career and lifestyle.

Request a Disability Income Quote

Protect your medical career with own-occupation coverage designed specifically for physicians and surgeons.

Get My Quote