Disability Insurance for OB/GYN: How to Buy the Best Coverage

One of your greatest assets as an obstetrician and gynecologist (OB/GYN) is your current and future income. Based on 2021 data from the Bureau of Labor Statistics, the average OB/GYN salary is just shy of $300,000.

What would happen if an unexpected illness or injury prevented you from realizing your earning potential? Where would an extended or permanent disability leave you both financially and professionally, particularly if you have a family that depends on your income?

Disability insurance can protect your income if you become disabled. But for many, it can be a complicated type of insurance that comes with sticker shock when balancing other financial obligations, like student loan debt, retirement contributions and saving for a home.

Keep reading to learn about disability insurance for OB/GYNs.

OB/GYN disability insurance premium cost

Your OB/GYN disability insurance premium will be based on a variety of factors, including your pay, occupation, age, overall health, benefit period and other policy choices. However, you can expect to pay 1% to 3% of your income for adequate disability insurance.

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

Company	Male	Female
Guardian	$248	$362
MassMutual	$200	$311
Principal	$163	$287
Ameritas	$202	$292
Standard	$201	$320

At SLP Insurance LLC, we advocate for disability insurance coverage that captures your needs for your unique situation. Fill out the form below to get your complete customized quote for OB/GYN disability insurance. In addition, read on to learn more about OB/GYN disability insurance.

Do OB/GYNs need disability income insurance?

Most people picture a traumatic accident, like a car wreck, when imagining a disabling event. But any number of medical illnesses or injuries could prevent you from being able to continue your work as an OB/GYN.

According to the Council for Disability Awareness (CDA), illnesses like cancer, heart attack and diabetes cause the majority of long-term disabilities. However, musculoskeletal disorders are the most common cause for long-term disability claims. These include progressive problems, such as arthritis and back pain.

In most cases, long-term disabilities aren’t work-related. Therefore, they aren’t covered by worker’s compensation. And when it comes to your employer’s benefit package, short-term disability coverage might be provided. But this type of coverage is intended for qualifying ailments within a three to six month window — not long-term.

In contrast, long-term disability insurance for OB/GYNs provides income security by paying a set portion of your monthly income for the duration of your benefit period. This income can be used to cover your living expenses and other financial priorities, allowing your family to continue their existing standard of living.

What to consider when choosing disability insurance for OB/GYNs

Unlike term life insurance policies, disability insurance can be quite a bit more complicated. There are many nuisances to consider when choosing a disability policy — from understanding the definition of disability to deciding on your benefit period and weighing various policy riders.

Here are some of the basics of disability insurance for OB/GYNs.

The definition of disability: Own-occupation vs. any-occupation coverage

As a physician with a high income, it’s important to have a policy with a strong definition of disability. Unfortunately, the best policies that cover the largest range of disabilities are also the most expensive. But the broader the definition of disability, the better coverage you’ll receive.

Under a true own-occupation policy definition, you’ll receive a payout if you aren’t able to work within the OB/GYN medical specialty due to a qualifying disability. This is the case even if you’re able to work in another medical capacity, still earning an income.

Whereas, an any-occupation definition will only pay you if you’re unable to work in general.

Keep in mind there are variations of these specialty specific definitions depending on the policy. So, you’ll need to have a clear understanding of what is and isn’t covered when deciding how broad or narrow the definition of disability is for your own risk tolerance.

The payout: How much income coverage you’ll get

Disability insurance for OB/GYNs won’t replace your full salary. But it’ll safeguard a set percentage of your income if you’re unable to work for a prolonged period of time.

Generally, you can expect long-term disability insurance to pay up to 60% of your gross monthly income.

Note that premiums paid via post-tax dollars (as is the case with individual policy premiums) will result in tax-free disability benefits. Therefore, receiving 60% of your income can be the rough equivalent of receiving your normal take-home pay.

The benefit period: How long you’ll be covered

When choosing a disability insurance policy, you’ll have the option to choose a benefit period that can last from two years after your initial claim up until retirement age or older. The longer the benefit period, the higher the premium.

The elimination period: How long you’ll wait to receive disability insurance benefits

The elimination period, sometimes called the waiting period, dictates the timeline between when you become disabled and when you start receiving monthly benefits. Options usually range from 30 days up to one year.

Other optional policy riders

There are many additional disability policy riders, or add-ons, that can significantly change your coverage and premiums. For example, you can customize your disability insurance policy by choosing:

• A future purchase option. This rider allows you to increase your benefit amount as your income or financial needs increase over the course of your career.
• Residual disability protection. This option provides security if your disability limits your work capacity but doesn’t sideline you entirely. For example, if you’re only able to work part-time hours due to your disability, residual protection will cover your loss of income.
• Retirement benefit. This rider requires the insurance company to make retirement contributions on your behalf.

Optional riders and costs will vary based on the policy and insurer. But adding extra features to your policy will up the overall cost of disability insurance for OB/GYNs.

Where to find disability insurance for OB/GYN practitioners

Your employer might offer long-term disability as part of its benefit package. If so, take some time to dig through the specifics of the plan — particularly when it comes to the definition of disability. You might also have access to discounted group coverage via a professional association.

That being said, you can opt for a better policy or supplemental coverage that will follow you throughout job changes by choosing an individual disability insurance policy.

SLP Insurance LLC works with agents who specialize exclusively in disability insurance (as well as term life), allowing for volume-based discounts that can benefit OB/GYNs. To see what type of physician disability insurance policy coverage is available to you, fill out the form below.