Disability Insurance for Ophthalmologists: Read This Before You Buy a Policy

The field of ophthalmology can lead to a lucrative career, with the average ophthalmologist earning $417,000, according to the Medscape 2022 physician compensation report. But becoming an ophthalmologist requires years upon years of education and training, including medical school, clinical internship, residency and possibly a fellowship depending on your specialty. 

With that level of dedication to learning to preserve and improve your patients’ eye health, it’s equally important to consider your own well-being in terms of income protection.

Disability insurance can replace a portion of your monthly income if you experience an injury or illness that prevents you from working as an ophthalmologist. Here’s what you need to know about disability insurance for ophthalmologists, including what to expect in terms of cost and coverage options.

Ophthalmologist disability insurance premium cost

Disability premiums will vary greatly depending on your age, gender, occupation and health history. For example, women can pay up to 35% more for disability coverage than their male counterparts. Fortunately, many disability insurance options have unisex program discounts.

As a general rule of thumb, you can expect to pay anywhere from 2% to 4% of your income for adequate disability coverage. But the cost of disability insurance will be its cheapest when you’re the youngest and healthiest. It’s better to buy coverage early in your career when it’s the least expensive.

Let’s look at an example of a female versus male ophthalmology resident or fellow to demonstrate the wide range in premiums.

Ophthalmologist own-occupation disability insurance monthly cost
(Age 34, resident/fellow)

Company	Male	Female
Guardian	$204	$297
MassMutual	$175	$273
Principal	$163	$287
Ameritas	$151	$232
Standard	$168	$267

In this example quote, a male ophthalmology resident could pay about $150 to $200 per month for disability coverage with a payout of $5,000 per month, including a future increase option up to $15,000. For the exact same coverage, a female ophthalmology resident could pay about $230 to $300 a month.

Note that an independent insurance broker can explore gender-specific discounts if you don’t have access to a GSI policy.

Why do ophthalmologists need disability insurance?

There are more than 19,300 active ophthalmologists in the United States, many of whom don’t realize the importance of carrying own-occupation disability insurance. Long-term disability insurance can benefit workers from all professions. But it’s essential for ophthalmologists with a high income and education investment to protect.

As an ophthalmologist who performs various eye surgeries, you need a steady hand with precise movement. A hand injury that might minimally impact other professions could be detrimental to your ability to perform normal ophthalmology duties. In this case, own-occupation disability insurance provides a monthly payout until you recover or max-out your benefit period. 

Depending on the policy, this timeframe could range from a couple of years all the way up to retirement age — allowing you to remain in a similar lifestyle without additional financial worry.

SLP Insurance provides customized quotes for disability insurance for ophthalmologists with a true own-occupation definition. Fill out the form below to receive a custom quote, or keep reading to learn what you can expect with adequate disability coverage.

What should ophthalmologist disability insurance cover?

Whether you’re still working toward earning the big bucks or have already reached your income potential, here are some policy options to consider when choosing disability insurance for ophthalmologists:

• Own-occupation coverage. Ophthalmology is a highly specialized field. If you become disabled, you’ll likely experience a significant drop in income if you don’t have a policy that is specific to your profession. With own-occupation coverage, you can receive a payout while earning income from another job outside your ophthalmology duties.
• Future increase option. If you’re a resident or fellow, you haven’t reached your full earning potential. Therefore, you can benefit from including a future purchase rider that allows you to increase disability coverage without additional medical underwriting.
• Partial disability (residual disability) rider. If you don’t qualify for a total disability, a partial disability rider can provide you with disability income based on your loss of income from reduced hours or duties.

You might prefer to add other policy options, such as a catastrophic rider, student loan rider or cost-of-living adjustment (COLA), depending on your situation and risk tolerance.

How often do ophthalmologists file disability insurance claims?

Based on historical claims data, disability insurance companies place ophthalmologists in one of the highest-risk classifications. This means your profession is more likely to file a disability claim than other occupations.

Therefore, you’ll likely pay higher premiums for disability coverage than lower risk specialties. But this further reinforces the need for disability insurance for ophthalmologists since you’re protecting against a bigger risk over the course of your career.

Top disability insurance options available to ophthalmologists

Ophthalmologists can potentially find disability insurance coverage through their employer or residency program. Alternatively, you can check with professional associations where you’re a member or compare individual disability policies with a trusted independent insurance broker.

Employer group coverage for ophthalmologists

Many hospitals, clinics and other medical employers offer group disability insurance as part of their benefits package. However, these group policies often come with benefit caps and limited definitions of disability. Therefore, your benefit might not be enough to cover your normal expenses. 

Additionally, your benefit payout will be considered taxable income if your employer covers the cost of your disability premiums. 

Professional associations might have disability options

Depending on your membership, you might be able to access discounted group disability coverage with a professional association. For example, the American Academy of Ophthalmology offers up to $10,000 in disability insurance benefits with benefit periods for two years or throughout your career.

However, you’ll likely find better coverage with an individual policy that allows for a larger disability benefit and more flexible policy options.

Individual ophthalmologist disability insurance policy

An individual disability insurance policy offers customized coverage. But it can sometimes be more expensive than other disability options if you work with a broker who doesn’t know what they’re doing.

Be sure to choose an independent insurance agent who searches the “Big 6” for the best coverage, as well as top discounts for your situation. These insurance carriers underwrite the majority of true own-occupation policies, giving you the strongest definition of disability.

Guaranteed Standard Issue policies

A guaranteed standard issue (GSI) policy might be a better option for you if you have an existing medical condition or are a female resident or fellow. These policies provide guaranteed coverage without medical underwriting, as well as unisex pricing.

GSI policies are typically only offered through a residency or fellowship program. For example, you can find GSI policy options with Children’s National, Albany Medical and George Washington.

The problem is that many insurance brokers won’t mention GSI policy options because they might not earn a commission in the process. This is one of the many ways that SLP Insurance stands apart.

We’ll recommend the best disability insurance policy we can find, regardless of where it might be. In some cases, this might mean going with a GSI policy through your residency. For others, we can access discounts for individual policies that you won’t necessarily find elsewhere.

Related: How to Buy Disability Insurance During Your Medical Fellowship

How much disability insurance do ophthalmologists need?

The maximum benefit available through an individual disability policy will depend on your existing coverage and your annual income. Generally, you can choose a maximum benefit ranging from 60% to 70% of your income, depending on the policy.

For simplicity, let’s say the maximum benefit available is 60%. For the average ophthalmologist earning $417,000 per year, the maximum disability benefit could be $20,850 per month.

But depending on your financial situation, you might not need the maximum benefit. For example, you might have existing disability coverage or you might live well below your means. In which case, you can opt for a smaller benefit amount that will result in a lower monthly premium.

Note that you might consider a higher amount of coverage if you’re the sole provider of your household or if your spouse makes substantially less than you.

Why you should review your ophthalmologist disability insurance policy

If you have an existing disability insurance policy, we recommend reviewing your coverage to ensure you’ll have adequate coverage when the time comes. Here are some specifics to look for anytime you’re shopping around for disability coverage:

• True own-occupation definition. Disability insurance coverage is tricky. There’s no point in paying into it for years, just to find out that you aren’t injured or sick enough to successfully file a claim. Own-occupation coverage will protect your ophthalmology specialty training and provide a payout even if you can work in another capacity.
• Terms for pre-existing medical conditions. If you have existing health concerns and apply for coverage with an inexperienced insurance broker, you risk being disqualified from a guaranteed issue policy that might benefit you more.
• Timeframe for your policy waiting period. This is how long it takes between filing your claim and receiving your first disability payment. Waiting periods generally range from 30 days to 180 days.
• Disability benefit limit. If you’re relying on your employer group insurance, you might be severely underinsured. We recently reviewed a surgeon’s employer-provided policy that was capped at a $5,000 benefit. While that payout might work for some physicians, it wasn’t enough to cover his monthly fixed expenses — putting his family at risk if he were to become disabled.

Many disability policies have weak definitions of disability to ultimately save the insurance company money. But you probably won’t know it until it’s too late. This is why you need to work with a disability insurance expert that will tailor your policy to your needs.

Get a disability insurance quote for ophthalmologists

SLP Insurance works with ophthalmologists and other high-income medical professionals to provide true own-occupation disability insurance that’s tailored to your specialty and lifestyle.

Additionally, our customized quotes let you access discounts you won’t necessarily find with other disability insurance options. If we can’t find the coverage you need at the best rate, we’ll refer you out to another broker. Fill out the form below, and our team will reach out with next steps.