Why “Own Occupation” Disability Insurance Is Non-Negotiable for Physicians

By: Michael Foster, CFA, CFP®

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A large portion of our client base is made up of physicians, and we love that! 

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These doctors have many of the same planning needs that most of our non-physician clients have, from estate planning, to budgeting, retirement planning, and more. They can also have more profession-specific needs around other financial areas of their life, including the way they need to approach disability insurance. 

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As a disclaimer, we do not sell or receive commissions on disability or any other type of insurance product. We simply help our clients evaluate their options and ensure they’re in the right types of policies for their situation.

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If you’re a practicing physician, it’s likely that your greatest financial asset isn’t your investments or your home. It’s your ability to earn an income through years of highly specialized training. That’s why protecting that income with the right type of disability insurance can be a key part of a sound financial plan.

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However, not all disability insurance is created equal. One feature that makes all the difference for those in the medical or other specialized fields is what's called "own occupation" coverage.

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What Is “Own Occupation” Disability Insurance?

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“Own occupation” means you’re considered disabled and eligible to receive benefits if you’re unable to perform the duties of your specific job or specialty, even if you’re capable of working in another field.

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Let’s break it down with an example:

• Say you're an orthopedic surgeon and you develop a tremor that prevents you from operating.
• You can still teach, consult, or work in general medicine, but you can no longer perform surgery.
• If you have an own occupation policy, you may still receive full disability benefits even if you decide to earn income doing something else.

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Contrast that with a more restrictive policy (sometimes called “any occupation”) where you likely wouldn’t qualify for benefits as long as you can work in some capacity, regardless of the pay cut or career change involved.

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Why It Matters So Much for Doctors

1. You’ve Invested Years in Training
   Your specialty isn’t just a job, it’s the result of years of education, residency, and practice. That investment isn’t easily replicated.
2. Higher Risk of Partial Disability
   Many medical issues won’t leave you completely unable to work, but they can make it impossible to perform procedures, stand for long hours, or maintain the demands of a clinical role.
3. A Specialty’s Value Isn’t Easily Replaced
   The income from a specialty like anesthesiology or surgery often far exceeds what you could earn in a non-clinical role. Own occupation coverage protects your specific income stream, not just your ability to make money.

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Watch Out for These Common Gaps

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Not all “own occupation” policies are created equal. Here are a few things to look for:

• Specialty-specific language: Make sure the policy clearly defines your occupation as your medical specialty, not just “physician.”
• No time limits: Some policies only offer own occupation protection for a few years, then shift to “any occupation.” True own occupation coverage lasts through the benefit period.
• Residual/partial disability riders: These can help cover income loss if you're only partially disabled.

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Final Thought: It’s Not Just Insurance, It’s Income Protection

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For physicians, disability insurance isn’t a luxury, it’s a vital component of a solid financial plan. And within that plan, own occupation coverage is the cornerstone of true income protection.

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If you’re unsure whether your current coverage protects your specialty, or you’re just getting started with planning, making sure your income is protected is a great place to start.