--- title: 10 Tips for Resident Physicians on Buying Disability Insurance description: Although most of us don’t expect to get sick or injured, more than 25 percent of today’s 20-year-olds will become disabled before they retire. That’s why investing in income protection now, as a medical resident, is so important. But knowing which disability insurance to purchase can be confusing, so here are ten tips to help you make the right decision. image: https://www.tmait.org/hubfs/Blog_Images/10-tips-for-resident-physicians-buying-disability-insurance.jpg --- - [800-880-8181](tel:800-880-8181) - [CONTACT US](https://www.tmait.org/contact) - [SELF-SERVICE PORTAL](https://tmait.aebsys.com/#/) [![](https://www.tmait.org/hs-fs/hubfs/TMA%20Insurance%20March%202019/Image/logo.png?width=197&name=logo.png)](https://www.tmait.org/) Topics All Accident Insurance Accidental Death and Dismemberment Auto & Home Insurance Auto Insurance Business of Medicine Business Overhead Expense Insurance Comparing Insurance Providers COVID-19 FAQs Critical Illness Insurance Dental Insurance Disability Insurance Employed Physicians Family Featured Financial Advice Group Benefits Group Coverage Health Insurance Homeowners Insurance HSA Independent Contractor Independent Physician Individual Coverage Insurance For Good Insurance for Women Insurance Review Key Person Insurance Life Events Life Insurance Locum Tenens Medevac Insurance Medical Insurance Medical Practice Medicare Medicare Part D Medicare Supplement Medigap Nearing Retirement Office Overhead Expense Insurance Open Enrollment Personal Umbrella Insurance Pet Insurance Practice Management Practice Managers Practice Owners Prescription Drug Coverage Renters Insurance Residents Retired Physicians Retirement Short Term Disability Short-Term Medical Insurance Supplemental Hospital Indemnity Insurance Term Life Insurance Travel Insurance Vision Insurance Women Physicians Young Physicans Young Physicians ![](https://www.tmait.org/hubfs/Blog_Images/10-tips-for-resident-physicians-buying-disability-insurance.jpg) [Disability Insurance](https://www.tmait.org/blog/topic/disability-insurance) # 10 Tips for Resident Physicians on Buying Disability Insurance 1 April 2015 “If you get hurt or become too sick to work, what happens to your income?” It’s one of the first questions that Scott Dial, a disability-income expert who works with TMA Insurance Trust, asks medical residents and new physicians. For some people — 40 percent, to be exact — that answer is usually “I don’t know” followed by “I think my employer has something,” or “my spouse will have to work.” The average healthy person is rarely counseled on handling a disability. Although most of us don’t expect to get sick or injured, the[ Social Security Administration](http://www.ssa.gov/news/press/basicfact.html) released a paper last year stating that more than 25 percent of today’s 20-year-olds will become disabled before they retire. That’s a scary thought. Even scarier to think that you, as medical resident just starting your career, could face an illness or injury that prevents you from completing your employment responsibilities. Unfortunately, control over the future is rarely possible. That’s why buying disability insurance now is so important. But knowing which disability insurance to purchase can be confusing, so here are ten tips to help you make the right decision. ## 10 Tips for Purchasing Disability Insurance 1. **Group vs. Individual ****Insurance ** **Group Insurance:** Most residency programs actually have a group policy in place that will be provided for you. Group insurance, which is issued to your organization, is a non-discriminatory policy with a typical benefit level range of $2,000-$3,500. One of the cons to a group policy is that they tend to be a little less comprehensive than individual policies because it must cover an entire population of people. Plus, when you complete residency, you’ll most likely lose the plan as group plans are not portable. It’s important to note that benefits received from most group plans are taxable income since the employer usually pays the premium. **Individual Insurance:** Some residency programs don’t offer adequate group disability coverage; therefore, you have the option to purchase an individual disability plan. The good news about an individual policy is you can keep it as you change employment or move from state to state. Your individual coverage can be tailored to fit your specific needs and lifestyle as a resident physician. Since policies are based on your situation at the time of application, it is generally recommended to lock in a plan when you’re young and healthy to get the most affordable rates. 1. **Research Based Decisions **– Considering your career choice, you are most likely someone who educates him or herself on the facts. There has been much[ research](http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp) on the potential to become disabled and one fact is that Americans underestimate their risk. According to the February 2013 Fact Sheet from the Social Security Administration, 64% of wage earners believe they have a 2% or less risk of becoming disabled during their career; this number is actually around 25%. Furthermore, in a 2012 study, there were over 2.5 million workers in their 20s, 30s and 40s who became disabled, according to Disabled Worker Beneficiary Data. So, while many of us like to think we are invincible, studies show this is not the case. Statistics like these show just how important having disability insurance truly is.   1. **Take Advantage of Lower Rates **– It’s easier and less expensive to get disability insurance while you are young and healthy. 1. **Inquire About Future Purchase Options **– Ask your advisor if your plan has a Future Purchase Option Rider, which allows you to increase coverage once your salary increases after residency. Having this rider will allow to increase coverage without having to undergo health underwriting. 1. **Own Occupation Provision** – Own occupation states that a benefit is paid to you if you cannot work in your occupation, or medical specialty, due to an illness or injury.  There is no reduction in benefit if income is earned in another medical specialty or occupation. 1. **Ask About Residual Riders **– While your advisor can give you all of the specifics, simply put, a residual rider will allow you to receive partial benefits if you endure a 15 – 20% or more loss of earnings. This percentage is specific to each insurance provider, so make sure you ask your advisor to get the full details. 1. **Add a COLA Rider** – Another beneficial rider to add, if you do happen to become sick or injured, is a Cost Of Living Adjustment, or COLA Rider. This rider increases your benefit to account for inflation, as long as you are claiming benefits for more than a year. Though no one wants to think about the possibility of becoming injured or sick, the odds prove it is wise to invest in your financial future with disability insurance protection no matter how young you are in your career. Hopefully these ten tips will help you find the right disability plan to protect your future. If you’re interested in learning more helpful tips on purchasing disability coverage during residency, feel free to [reach out to us](https://info.tmait.org/contact). We’ll partner you with an experienced advisor who can answer your questions and provide any additional information for you. ** [ Disability Insurance ](https://www.tmait.org/blog/topic/disability-insurance) ** [Residents](https://www.tmait.org/blog/topic/residents) [**Previous Entries](https://www.tmait.org/blog/why-overhead-expense-insurance-is-critical-for-physicians) [Next Entries**](https://www.tmait.org/blog/5-steps-physicians-can-take-towards-a-successful-retirement) ## Recommended Posts ### [Disability Insurance—Without Gender-Based Pricing Discrimination](https://www.tmait.org/blog/disability-insurance-without-gender-based-pricing-discrimination) ### [Mind the Gap: Why Your Employer’s Disability Coverage May Fall Short](https://www.tmait.org/blog/mind-the-gap-why-your-employers-disability-insurance-coverage-may-fall-short) ### [When Your Family Depends On You: Disability Insurance for Physicians](https://www.tmait.org/blog/when-your-family-depends-on-you-disability-insurance-for-physicians) ### [Don’t Let a Busy Schedule Block Your Disability Protection](https://www.tmait.org/blog/dont-let-a-busy-schedule-block-your-disability-insurance-protection) ### [What the TMA Member Disability Plan Includes That Others Don’t](https://www.tmait.org/blog/what-the-tma-member-disability-plan-includes-that-others-dont) ### [Don’t Let These Coverage Gaps Surprise You in Retirement](https://www.tmait.org/blog/dont-let-these-coverage-gaps-surprise-you-in-retirement-medicare) ### [A Physician's Path to Better Disability Coverage](https://www.tmait.org/blog/a-physicians-path-to-better-disability-insurance-coverage) ### [Insurance That Gives Back](https://www.tmait.org/blog/insurance-that-gives-back) ### [Dental Insurance and the Habits It Helps Shape](https://www.tmait.org/blog/dental-insurance-and-the-habits-it-helps-shape) ### [Unexpected Doesn't Have to Mean Unprepared This Summer](https://www.tmait.org/blog/unexpected-doesnt-have-to-mean-unprepared-this-summer) ### [When “Easy Online” Life Insurance Wasn’t So Easy](https://www.tmait.org/blog/when-easy-online-life-insurance-wasnt-so-easy) ### [One Plan for the Year—Travel Insurance That Covers Every Trip](https://www.tmait.org/blog/one-plan-for-the-year-travel-insurance-that-covers-every-trip) ### [Disability Insurance—Without Gender-Based Pricing Discrimination](https://www.tmait.org/blog/disability-insurance-without-gender-based-pricing-discrimination) ### [Mind the Gap: Why Your Employer’s Disability Coverage May Fall Short](https://www.tmait.org/blog/mind-the-gap-why-your-employers-disability-insurance-coverage-may-fall-short) ### [When Your Family Depends On You: Disability Insurance for Physicians](https://www.tmait.org/blog/when-your-family-depends-on-you-disability-insurance-for-physicians) ### [How TMA Insurance Trust Reinvests in You](https://www.tmait.org/blog/how-tma-insurance-trust-reinvests-in-you) ## Speak with a TMA Insurance Trust Advisor: ### Latest Post ![A New Alternative for Group Health Insurance](https://www.tmait.org/hubfs/July%202026/July%202026%20Week%201%20-%20Group%20Health.png) ### [A New Alternative for Group Health Insurance](https://www.tmait.org/blog/a-new-alternative-for-group-health-insurance-group-benefits) Jul. 04 2026 ![Why Going It Alone on Group Health Coverage Costs Your Practice](https://www.tmait.org/hubfs/June%202026/June%202026%20Week%204%20-%20Group%20Health.png) ### [Why Going It Alone on Group Health Coverage Costs Your Practice](https://www.tmait.org/blog/why-going-it-alone-on-group-health-coverage-costs-your-practice-group-benefits) Jun. 27 2026 ![Dental Insurance and the Habits It Helps Shape](https://www.tmait.org/hubfs/June%202026/June%202026%20Week%203%20-%20Dental.png) ### [Dental Insurance and the Habits It Helps Shape](https://www.tmait.org/blog/dental-insurance-and-the-habits-it-helps-shape) Jun. 20 2026 ![Unexpected Doesn't Have to Mean Unprepared This Summer](https://www.tmait.org/hubfs/June%202026/June%202026%20Week%202%20-%20Accident.png) ### [Unexpected Doesn't Have to Mean Unprepared This Summer](https://www.tmait.org/blog/unexpected-doesnt-have-to-mean-unprepared-this-summer) Jun. 13 2026 ### POPULAR TOPICS - 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