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You may be eligible for SSDI. but be aware that benefits are limited. In 2022, the average monthly payment for a breadwinner with a spouse and child is $2,383.^[1] Additionally, these Social Security benefits are only available to those who expect to be disabled for at least one year, and not all applications are approved. In a recent year, 2017, just 28.8% of applications were approved.^[2]

Worker’s compensation only applies to illnesses or injuries incurred on the job or resulting from a job. Without adequate disability coverage or sufficient personal assets, the individual could be faced with some difficult choices, including but not limited to reducing standard of living, increasing reliance on the earnings of a partner or spouse, tapping savings or retirement accounts, or relying on family or friends for help.

If you have long-term disability insurance as a part of your employer’s benefits package, it behooves you to take a close look at the provisions of the policy.

How much does it pay?

• Typically, 60% of base income is the maximum benefit, and if this benefit is paid for by your employer, it may be taxable to you as ordinary income.^[3]

Will payments end when you are able to do any work?

• Or will it pay until you are able to perform the requirements of your regular occupation, or better yet, your own specialty? This is an especially important question for physicians, who have invested so much time and money preparing for their profession.

Is employer provided insurance portable?

• The answer, generally, is no. When you change employers, you will not take employer-provided disability coverage with you.

^[1] Social Security Administration, Fact Sheet, 2022 Changes https://www.ssa.gov/news/press/factsheets/colafacts2022.pdf

^[2] https://www.ssa.gov/policy/docs/statcomps/di_asr/2018/sect04.html

^[3] Consult your tax advisor for specific information on your personal situation.

By now, you may be concluding that you may need to purchase physician disability income insurance or supplement the coverage you already have. If so, it’s time to talk with an insurance specialist who is thoroughly familiar with the special insurance needs of physicians and their families.

A well-trained specialist will walk you through the options available to you and will explain how each would affect your premiums and benefits. The goal: coverage that protects what you’ve worked so hard and long to achieve.

One final note: The disability coverage that works today, may not be your best choice forever. As your life and family change, you may find that your disability protection needs change, so it’s a good idea to review your coverage annually or any time there are major changes in your professional or family life.