The Responsible Resident
The Responsible Resident Podcast is a short-form educational series designed for medical students, residents, and fellows who want clarity around financial decisions during training, without pressure, sales, or noise.
Hosted by Amber Stitt, co-owner of MD Disability Quotes and a 15-year specialist in physician income protection, this podcast focuses on what truly matters during medical training: timing, underwriting, and protecting future earning power.
Most residents believe financial decisions can simply be handled later. What this series explains, calmly and clearly, is that some decisions are influenced by health history and timing. Flexibility exists during training, but it does not last forever.
You don’t need to take action immediately. The goal is competence first, so when decisions matter, you’re prepared.
If you’re in training and want to understand your options before they narrow, this podcast is for you.
The Responsible Resident
Disability Insurance Premium Payments - RR Ep 9
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How do disability insurance premiums work, and which pricing structure is best for physicians long-term?
Fixed premiums, projected level premiums, and graded premiums explained for disability insurance planning.
In this episode of The Responsible Resident, Amber Stitt breaks down how disability insurance premiums are structured and why pricing design matters for physicians evaluating long-term income protection.
Learn the key differences between fixed premiums (level), projected level premiums, and graded (increasing) premiums, and how each impacts affordability, flexibility, and total cost over time.
This episode covers essential disability insurance concepts, including:
- How fixed premiums provide long-term stability and predictable costs
- When projected level premiums may adjust and how they are regulated
- Why graded premiums start lower but can become more expensive over time
- How premium structure affects residents, fellows, and attending physicians
- The importance of aligning cost structure with long-term financial planning
Understanding disability insurance pricing is critical for physicians, as policies are designed to protect income over decades, not just in the short-term.
Choosing the right premium structure ensures your coverage remains sustainable as your career evolves.
Follow for more physician-focused education on disability insurance and financial planning.
📻 Thank you for tuning in to The Responsible Resident!
To Download the FREE Medical Professionals Blueprint:
If you would like a free quote, please contact us at:
mddisabilityquotes.com/responsible-resident
Amber Stitt is a disability insurance specialist with over 15 years of experience helping physicians protect their income and make informed financial decisions.
As the host of The Responsible Resident, she brings a structured, education-first approach to topics like disability insurance, underwriting, and income protection, areas often overlooked during medical training.
🔗 Connect with host, Amber Stitt, on Social Media:
📲 Be sure to visit the Stitt Strategies website:
🎬 And remember, let's take action today!!!
Amber [00:00:00]:
Welcome to the Responsible Resident. I'm Amber Stitt. This podcast takes a common sense approach to financial decisions for physicians, breaking down complex topics into something clear, practical, and usable. Because you shouldn't have to have a finance degree to build financial freedom. In this episode, we're answering a question that doesn't get enough attention: "How do disability insurance premiums actually work, and why does the structure matter over time?" When most physicians evaluate disability insurance, they naturally focus on definitions and benefit amounts, and those are important. But the premium structure, how you pay for the policy over time, can have a significant impact on long-term affordability. There are 3 primary ways disability insurance premiums are structured: fixed premiums, projected level premiums, and graded, or increasing, premiums. Each one behaves differently over time.
Amber [00:00:56]:
First, let's start with fixed premiums. This is the most straightforward option. The premium you pay today is the same premium you'll pay in the future. It doesn't increase. For many physicians, this provides long-term cost stability, predictability for budgeting, and simplicity in planning. If you're someone who plans to keep your policy long-term, this structure offers consistency. Next is projected level premiums. These are designed to remain stable, but they are not contractually guaranteed to stay the same forever.
Amber [00:01:29]:
For rates to increase, the following conditions must occur: the insurance carrier experiences higher than expected claims, regulatory approval is granted, changes apply broadly to all similar policyholders within a state, and adjustments are made to bring pricing back in line with expected risk. This structure can offer a balance between affordability and stability, making it a common option for physicians evaluating disability insurance. The third type is graded premiums, also known as increasing premiums. These start lower but increase each year based on a schedule built into the plan design you have chosen. This structure is often appealing during training because the initial cost is lower and can fit more easily into a resident's budget. But over time, these policies can become more expensive than other options. For women, I have seen the savings on this model stop a lot earlier than for male physicians.
Amber [00:02:28]:
Additionally, although you can level-off the plan in the future and switch over to fixed premiums, you can only do so at your future age during the year you ask for the adjustments to stop. Be sure to take note of that before signing up. Seeing the jump in costs when you want to level the plan pricing may help you decide on that fixed level pricing from the beginning. Please note that as you increase, you will again have to decide if you are going graded or level on all of your policy increases and this can create a lot of moving parts. I'd like to take a second to tell you about a FREE Medical Professionals Blueprint that I created with you in mind. At some point in your career, you realize it's not just about making more money, it's about making decisions. Decisions that actually support your life. That's exactly why I created "The Pathways Perspective for Physicians."
Amber [00:03:22]:
It's a simple, non-technical framework to help you think through your career, your money, your risk, and how everything connects as your life evolves. You shouldn't have to have a finance degree to build financial freedom. You don't need to have everything figured out, you just need a place to start. You can download the FREE Medical Professionals Blueprint at: StittStrategies.com/Blueprint So, how do you decide which structure makes sense? It comes down to a few key factors: Your career stage, your current budget and flexibility, how long you plan to keep the policy, and your future income trajectory. A helpful question to ask is: "Will this premium structure still work for me 10, 20, or even 30 years from now?" Because disability insurance is not a short term decision, it's a long-term asset. So while the monthly premium matters, the structure behind that premium matters just as much. Here's the simple breakdown: Fixed premiums offer long-term stability.
Amber [00:04:28]:
Projected level premiums are designed to stay stable with limited adjustment scenarios. Graded premiums start lower, but increase over time. The right structure depends on your stage of training and your long-term plan. Disability insurance is designed to protect your income over decades, so the cost structure should align with that same long-term thinking. Understanding how premiums work gives you the ability to choose coverage that is not just effective, but sustainable. That's a wrap on today's episode of The Responsible Resident. In the next episode, we're going to build on today's conversation around long-term planning and cost structure by walking through another feature that that directly impacts how your coverage holds up over time. We'll be discussing the "Cost Of Living Adjustment", also known as COLA, or the inflation feature, and how it works inside a disability insurance policy.
Amber [00:05:21]:
Thanks for listening and I'll see you in the next episode. If this episode helped you think a little more clearly about your next step, that's the goal. You don't need to have everything figured out, but you do need to take ownership and take a meaningful step forward today. Thanks for listening to The Responsible Resident. As a reminder, this podcast is for general educational purposes only. It is not legal, tax, or individualized financial advice and coverage options will vary based on your personal situation.