Is disability insurance worth it for my specialty?

Group policies are cheap and usually weaker: they often use an any-occupation definition, offset benefits by other income, and end when you leave the job. An individual policy can be true own-occupation, non-cancelable, and portable — which is why it costs more.

Four terms decide most of the value: the definition (true vs modified vs any occupation), the benefit period (to 65 vs five years), the mental-and-nervous limitation, and the future increase option. A policy that is cheap because it caps mental-health claims at 24 months may not cover the most common claim.

Cost depends on age, health, specialty and benefit amount, so no single premium is 'normal.' Compare quotes on the same definition and benefit period, and ask whether a unisex or group-to-individual discount applies.

Actions that follow from the numbers

1. Get the policy's definition of disability in the contract's own words. Audit a quote
2. Compare your group coverage with one individual quote on the same definition.
3. Ask about the future increase option before your income rises.

What could change this

Each condition below would change the conclusion above. If one applies, re-run the numbers before acting on this answer.

• Your group policy is already true own-occupation, non-cancelable, and portable — the case for an individual policy weakens considerably.
• You have no dependents and enough savings to cover the benefit period — the need is smaller.
• Your health history or age makes individual underwriting expensive or slow — the trade-off changes.

When the numbers aren't enough

• You are in a procedural specialty where a hand or back injury ends your practice.
• Your group policy is any-occupation or ends at five years.
• You have a health history that makes underwriting time-sensitive.

Sources

• Andwise: understanding disability insurance