Amber Stitt [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. This show is designed to help medical students, residents, fellows, and early career physicians better understand disability insurance underwriting and the financial decisions that can shape your future. This June, during Disability Insurance Awareness Month, Scott and I have had conversations with physicians across the country and one pattern continues to stand out. Many physicians don't choose to skip disability insurance because they don't care about protecting their income. Most simply believe they're already making the right decision. Today, I want to walk through 6 of the most common assumptions we hear and explain why each one deserves a second look.
Amber Stitt [00:00:51]:
Because on the surface, many of these assumptions sound completely reasonable. But when we look a little deeper, the long-term consequences can be significant, sometimes even devastating. Let's dive in. Assumption # 1: "It's too expensive." This is probably the most common concern. We hear physicians look at the premium and think, "That's expensive." And compared to some other insurance products, it can be. But here's another way to look at it:
Amber Stitt [00:01:17]:
What's actually expensive, the premium, or losing the ability to earn $300K, $500K, or even $1 million a year? Because that's the asset you're really protecting, not the policy. Your income. A disability insurance policy might cost a few hundred dollars a month, but your future earning potential could easily exceed $10 or $20 million dollars over the course of your career. That's a very different conversation. And remember, coverage isn't always all, or nothing. There are many ways to customize a policy through elimination periods, benefit periods, rider selections, and benefit amounts to fit different budgets. Assumption # 2: "Medicine is a secure career." In many ways it is.
Amber Stitt [00:02:03]:
Healthcare isn't going away. Physicians are always needed. But disability doesn't care how much demand exists for your specialty. It cares whether you can perform it. A surgeon with a hand injury. An anesthesiologist experiencing cognitive changes. An OB/GYN with chronic back pain. A radiologist whose vision has been affected.
Amber Stitt [00:02:23]:
These aren't unusual stories. They happen every year. Your profession may still be in demand, but if you're unable to practice your specialty, that demand doesn't replace your paycheck. 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 about making more money, it's about making decisions that actually support your life. That's exactly why I created "The Pathways Perspective for Physicians." 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.
Amber Stitt [00:03:05]:
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. Assumption # 3: "I already have group coverage." This may be the single biggest misconception Scott and I encounter at MD Disability Quotes. A physician tells us, "My employer provides disability insurance, so I think I'm covered." And honestly, that's a reasonable assumption. If your employer tells you they offer disability insurance, why wouldn't you believe you're protected? Here's the important distinction. Group disability insurance isn't bad. But group disability insurance and individual disability insurance were designed for different purposes. Group coverage often provides a foundation of protection for an entire workforce.
Amber Stitt [00:04:03]:
Individual disability insurance is designed to protect your specialty, your income, and your career. Those are very different objectives. This June one of the biggest themes we've noticed in our conversations with physicians is that many who decide not to purchase an individual policy are relying almost entirely on their employer's group disability plan. What many don't realize is that those plans often have limitations they haven't reviewed, yet. For example, many employer sponsored group plans replace only a portion of your income, have monthly benefit caps that become more noticeable as physician income increases, and may only provide taxable benefits if your employer pays the premium. Most group plans use a more restrictive definition of disability, and the worst one is that they may force you to file for Social Security disability and if denied, you would have to appeal. And if they find out you are still not Social Security eligible and that you are able to do any job, they may not pay. And the fact that your group plan often doesn't follow you if you change employers, becomes increasingly important throughout your career. Physicians change jobs.
Amber Stitt [00:05:18]:
They complete residency, join hospital systems, leave hospital systems, become partners, open private practices, accept academic positions, take locums assignments, start consulting businesses. Your career evolves. Your group disability insurance probably will not. One thing Scott and I have learned over the years is that many physicians don't discover these limitations until they're negotiating a new employment contract, or worse, after experiencing a health event. By then, your health, not your income, is what determines whether you can still qualify for individual disability insurance. That's why we encourage physicians to understand what they already have before assuming it's enough. Sometimes employer coverage provides exactly what someone needs. Sometimes it leaves meaningful gaps.
Amber Stitt [00:06:13]:
The important thing isn't guessing, it's knowing. So here's one question worth asking. If I changed jobs tomorrow, would my disability insurance change, too? If the answer is, "Yes," it may be worth learning what your options are while your health still gives you the flexibility to choose. Assumption # 4: "I don't fully understand it." Honestly, this one is fair. Disability insurance contracts can be complicated. Definitions matter. Residual benefits matter.
Amber Stitt [00:06:47]:
Future purchase options matter. Mental and nervous provisions matter. Elimination periods matter. But confusion shouldn't become avoidance, because avoiding complexity doesn't eliminate risk. It simply leaves it unmanaged. That's one of the reasons this podcast exists. Education creates confidence, and confidence helps physicians make better long-term decisions.
Amber Stitt [00:07:11]:
Assumption # 5: "I'm healthy, I'll probably be fine." This is something psychologists call optimism bias. We naturally believe bad things happen to other people. And maybe they do. Until they don't. Most disability claims aren't dramatic accidents. Many involve cancer, autoimmune diseases, neurological disorders, back conditions, mental health conditions, pregnancy complications, chronic illness.
Amber Stitt [00:07:39]:
Over 26% of U.S. adults live with a disability, making it a highly common reality. According to the Council for Disability Awareness and the CDC, roughly 30% of working Americans will experience an illness or accident that keeps them out of work for 90 days, or longer, before retirement. Health today doesn't guarantee insurability tomorrow, and that's one of the most overlooked realities in disability insurance. Assumption # 6: "I'll handle it later." Life gets busy. Residency, fellowship, marriage, kids, moving, job offers, loan repayment. There's always another priority, so disability insurance becomes something you'll, "look into later."
Amber Stitt [00:08:24]:
But later can become more expensive, or unavailable altogether. Because underwriting evaluates your health when you apply, not when you intended to apply. A new diagnosis, an MRI, a medication, a surgery, an anxiety diagnosis, a DHD treatment, back pain. All of these can influence future underwriting decisions, sometimes permanently. One of the hardest conversations we have is with physicians who now understand the value of disability insurance, but no longer qualify for the coverage they could have obtained just a few years earlier. Some final thoughts: Here's what I hope you remember from today's episode: not purchasing disability insurance is still a decision. Sometimes it's an intentional decision.
Amber Stitt [00:09:09]:
Sometimes it's based on the assumption that employer coverage will be enough. Sometimes it's simply because life got busy. Whatever the reason, the important thing is making that decision with a clear understanding of what your current coverage does and, just as importantly, what it doesn't do. The goal isn't fear. The goal is awareness. Responsible planning means understanding risk before life forces the decision for you. If you'd like to review your current coverage, better understand underwriting, or compare your options, Scott and I would be happy to help you through MD Disability Quotes. And if you're looking for a broader framework to help guide your financial decisions throughout your medical career, download the FREE Medical Professionals Blueprint at: StittStrategies.com/Blueprint. Until next time, stay informed, protect your greatest financial asset, and, as always, stay responsible.
Amber Stitt [00:10:05]:
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 Residential. 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.
