Orthopedic Surgeon Disability Insurance: Guide to Cost + Coverage Types

Becoming an orthopedic surgeon is no easy feat. After nearly a decade of undergraduate and medical school, you have to find a residency program in one of the most competitive medical specialties. Once you’ve completed a five-year residency, you might tack on several additional years of residency or fellowship training to specialize further in your field. But those 15 years (give or take) of stress, hard work and six-figure student debt are all worth it to do what you love while earning an orthopedic surgeon salary.

But what happens if your career trajectory is forced to a sudden halt due to an unexpected injury or illness? As an orthopedic surgeon, using your hands is essential to performing complex procedures. Unfortunately, any number of injuries — from neuropathy in your hands to a car accident — could impact your abilities as a surgeon. This is one of the many reasons that disability insurance is necessary for orthopedic surgeons.

Keep reading to learn about the main types of disability insurance for orthopedic surgeons, including where to find affordable policies for your profession.

Orthopedic surgeon disability insurance premium cost

Your disability insurance premium will vary depending on personal and lifestyle factors, such as age, gender, profession or specialty, medical history and state of residence. However, as a general rule of thumb, you can expect to pay between 2% to 4% of your income for long-term disability insurance coverage.

Here’s a sample quote for a female versus a male orthopedic surgeon resident or fellow.

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

Company	Male	Female
Guardian	$248	$361
MassMutual	$222	$345
Principal	$192	$346
Ameritas	$180	$276
Standard	$201	$319

In this example, a male orthopedic resident or fellow could buy true own-occupation disability coverage with a $5,000 monthly benefit for about $180 to $250 per month. A female resident could pay about $275 to $360 per month for the same coverage.

Note this quote includes policy riders like a future increase purchase option, a residual and recovery benefit, and catastrophic disability.

Keep in mind that disability insurance is a highly customized financial product, so premiums will vary based on your own preferences and financial situation.

SLP Insurance specializes in finding disability insurance for orthopedic surgeons with a strong own-occupation definition. Get a quote below, or read on to learn what orthopedic surgeons can expect when considering disability coverage.

Why do orthopedic surgeons need disability insurance?

As an orthopedic surgeon, you’re no stranger to the long list of injuries that could impact someone’s ability to work. If you experience one of these disabling events, long-term disability insurance can cover a percentage of your income for your chosen benefit period (e.g., up to age 65).

Your high salary and specialized medical training make you a primary candidate for own-occupation disability insurance. It becomes even more important if you have a spouse or children relying on your income.

Related: Ameritas Disability Insurance Review

What should orthopedic surgeon disability insurance cover?

With an income that increases rapidly after residency, here are some key details to look for in an orthopedic surgeon disability insurance policy:

• Own-occupation coverage. Orthopedic surgeons should opt for a true own-occupation policy that allows disability insurance benefits if you can’t perform your regular orthopedic duties. This definition of disability allows you to work in another field without losing your full benefits.
• Partial disability rider. If you’re not totally disabled and can continue working, you’ll be eligible for residual disability benefits with a partial disability rider. Your benefits will be based on loss of income due to a reduced workload (e.g., duties, time, etc.).
• Future purchase rider. Residents and fellows should include a future increase option that’ll allow you to increase coverage at a future date without additional medical underwriting.

Disability insurance companies offer a variety of policy riders to address your individual needs. For example, you might add a catastrophic disability benefit or a cost-of-living adjustment (COLA).

Keep in mind that optional riders can raise your premiums. So, you’ll need to determine which additions could benefit your situation to avoid unnecessary costs.

Related: Surgeons: Forget Hand Insurance — Get This Coverage Instead

How often do orthopedic surgeons file disability insurance claims?

Disability insurance companies place orthopedic surgeons in one of the highest-risk classifications. This determination is based on disability claims history for the profession overall. 

Unfortunately, a high-risk classification translates to higher monthly premiums compared to other types of physicians. But it also reaffirms the need for disability insurance for orthopedic surgeons, as you're more likely to file a claim than a generalist.

For example, if a family practice physician were to bang up their hand in a car accident, they’d likely be able to continue to perform their job duties almost immediately. But as an orthopedic surgeon, you could be sidelined from surgical procedures for months, years or permanently, depending on the severity of the injury.

Therefore, by buying disability insurance for orthopedic surgeons, you’re protecting against a much bigger risk than other medical professionals with less specialized training.

Main types of disability insurance available to orthopedic surgeons

There are several primary places physicians can gain access to disability insurance options.

Employer group coverage for orthopedic surgeons

If you’re in private practice, you likely don’t have a group long-term disability (LTD) insurance policy. But if you work directly for a hospital, you might have group coverage as part of your overall benefits package.

If so, group LTD is usually provided at no cost but with limited benefits and a weak definition of disability. However, any paid disability benefits will be taxable income since your employer is footing the bill for your premiums.

Some professional associations offer disability coverage

You can check for disability insurance options with any professional association or organization you’re a member of. For example, the American Association of Orthopaedic Surgeons offers individual disability insurance for up to $20,000 per month. Alternatively, members of the American Medical Association have the option to buy group disability insurance.

Individual orthopedic surgeon disability insurance policy

Not all disability insurance policies are created equal. Many nuances make choosing an adequate disability policy more challenging. This is why you should work with an experienced independent broker who will search the “Big 6” insurance carriers who are responsible for underwriting the majority of true own-occupation disability policies. They can then guide you to the best policy based on your individual needs and risk tolerance level.

GSI policy through your residency program

If you’re working with an insurance agent who is primarily focused on earning a commission, they might not mention if you have access to a guaranteed standard issue (GSI) policy.

A GSI policy provides guaranteed coverage without requiring medical underwriting. These policies are typically available for residents and fellows at specific hospitals throughout the country.

For example, residents with John Hopkins, NYU Medical Center and UC Davis might benefit more from a GSI policy, particularly if they have an existing medical condition. 

GSI policies might also benefit female residents, as women can pay up to 35% more for disability insurance than their male colleagues. However, a GSI policy provides unisex pricing that can result in a significant discount for female physicians.

In some cases, you might find better discounts with your residency GSI policy than with an individual disability policy. This is where SLP Insurance sets itself apart from other insurance brokers. We’ll find you the best own-occupation disability policy we can find, no matter where it might be — regardless of whether a commission is involved or not.

How much disability insurance do orthopedic surgeons need?

Typically, the maximum benefit allowed for disability coverage is 60% of your income. However, this benefit will vary depending on the policy.

The average orthopedic annual income is $557,000, according to the 2022 Medscape Physician Compensation Report. Therefore, the maximum monthly disability income could be around $27,850 for the average orthopedic surgeon.

Depending on whether you have an existing disability policy and other factors, you may adjust your benefit amount to fit your financial needs. Here’s what you should consider when choosing your benefit amount:

• How much is needed to cover your essential expenses? Think about your mortgage, car payments, childcare and other fixed bills. Then add a few thousand dollars for an extra cushion for unexpected or miscellaneous expenses.
• Are you the sole provider? If you’re a one-income family or if your spouse earns significantly less than you, you might consider a higher payout than an orthopedic surgeon who is married to another high-income earner.
• What is your existing disability coverage? Look at your disability policy to understand your benefit payout and definition of disability to determine if a supplemental individual policy is necessary to fill any financial gaps.

Keep in mind that your disability payout will be tax-free if you’re responsible for paying your monthly premiums. In contrast, your benefit payout will be considered taxable if your employer covers your premium payments.

Why you should review your orthopedic surgeon disability insurance policy

Whether you have an existing disability insurance policy or are just beginning your search, here are some policy specifics you’ll need to review:

• Do you have true own-occupation coverage? A weak definition of disability primarily benefits the insurance company as it makes it harder to successfully file a disability claim. Orthopedic surgeons should confirm they have a true own-occupation policy that provides coverage for your specialty.
• Will a pre-existing condition impact your ability to find disability coverage? If you have existing health concerns, you need to work with a knowledgeable insurance broker who will explore GSI and individual disability options before applying for coverage.
• How much are your disability premiums? You could be paying more than necessary for inadequate disability coverage. Unfortunately, many insurance companies pay large commissions to agents who can only push policies from one company. So, you might be able to find more affordable rates with better coverage by comparing your disability options with an independent broker.

If you have concerns about being adequately covered in the event of a disabling injury or illness,  you might benefit from a supplemental individual disability policy.

Get a disability insurance quote for orthopedic surgeons

Orthopedic surgeons must protect their high income and specialized training with a true-own occupation disability policy. SLP Insurance and its partner agents will consider your unique financial needs and find available discounts to ensure you get the coverage you need at an affordable rate. We’ll refer you to an alternative broker if they can find you a better deal.

Start the disability insurance quote process today by filling out the form below, and our team will reach out with the next steps.