Why is disability insurance important – and why should you consider it now?

Let’s face it, young physicians are unique.  You live a busy, demanding lifestyle focused on learning your craft.  Most incur significant debt, with the average approaching $200,000.  Plus, the years in med school & residency can delay your income another 10 years compared to peers.  An engineering friend making six figures out of college might earn $1 million before you even get started.  That could put you nearly $1.2 million in the hole.

But as you move into practice, your income is likely to increase significantly.  As a cardiologist, for instance, you might go from making $60,000 as a resident to earning $400,000 per year in practice.  That ability to earn a living as a physician, in this case as a cardiologist, is extremely valuable and should be insured.  If you lived in a $400,000 home, I’m guessing you’d purchase homeowner’s insurance right away.  Yet the risk of your home being destroyed by a fire is considerably less than suffering an illness or injury which might prevent you from practicing medicine – and earning an income.

Your future earning potential as a physician should be protected, and the best way to help protect it is through the purchase of a disability income insurance policy.  The good news is that most young physicians understand the need – and why disability insurance is so important.  The part that many don’t quite comprehend is “why now?”  In fact, many of you are probably asking these very questions as you read this article:  “Why should I purchase a disability insurance policy while I’m a resident?  Why not wait until I’m practicing and have the income to pay for it.  I’m living week to week right now, and I can’t afford to incur another expense.”