Disability Insurance for Pediatricians: Costs and Policy Options

Pediatricians are the go-to source for parents navigating the many stages of childhood. To accomplish this, they need a broad understanding of preventative care, as well as the diagnosis and treatment of physical, developmental and behavioral issues from birth to age 18. Their background includes an extensive educational journey — usually a combination of medical school, a pediatric residency and possibly a subspecialty fellowship.

Even with six-figure medical school debt and additional training years, 84% of pediatricians say they would choose pediatric medicine again if given the option. Plus, the calling comes with a nice average pediatrician salary of $244,000.

So, the last thing you want to do is risk your pediatrician income by not carrying sufficient disability insurance. Keep reading to learn how disability insurance for pediatricians can protect your specialty income, including how much it’ll cost you.

How much does disability insurance for pediatricians cost?

You can expect to pay between 2% to 4% of your pediatrician income for long-term disability insurance. That said, many individual factors impact the cost of disability insurance, such as your age, gender, health history and occupation.

An own-occupation disability policy provides the strongest income protection because it allows a broad definition of disability. It specifically protects your medical specialty, which means you can file a disability claim if you’re unable to perform the “substantial duties” of being a pediatrician. As a bonus, you can work in another field without losing your disability insurance benefits.

However, this type of coverage can be more expensive. The good news is that you can find more favorable premiums for disability insurance than, say, a surgeon since general pediatric medicine is a non-invasive medical specialty. Here are some sample quotes for a male versus female pediatric resident or fellow.

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

Company	Male	Female
Guardian	$162	$236
MassMutual	$140	$218
Principal	$110	$194
Ameritas	$145	$207
Standard	$145	$228

Why do pediatricians buy disability insurance?

Long-term disability insurance can offset a portion of your lost pediatrician income after experiencing a serious injury or illness. Generally, you can buy disability insurance that covers around 60% of your pre-tax earnings. It can replace most (if not all) of your normal take-home pay, allowing you to continue in your existing lifestyle while you recover or adapt to living with a disability.

But many types of disability insurance and policy provisions exist that provide varying levels of coverage. For example, you can receive disability benefits for a couple of years or opt for a benefit period that pays out through traditional retirement age. So, it’s important to understand your options and weigh the cost versus the benefits of your situation.

Fill out the form below to receive a custom quote for disability insurance for pediatricians. Otherwise, continue reading to learn what your policy should cover and where to find policy options.

What should disability insurance for pediatricians cover?

Many optional provisions, called policy riders, can expand your coverage. But they can also increase your premiums.

We recommend looking for a policy with an own-occupation definition of disability. From there, you can choose disability insurance riders that fit your needs and risk tolerance, such as:

• Future increase option. This is a great option for residents, fellows and young pediatricians. It allows you to buy more coverage without additional underwriting in the future.
• Partial disability or residual disability benefits. It’s important to have at least some residual coverage. If you have reduced income or job duties due to a partial disability, you can still collect disability benefits.
• Catastrophic benefits. If you experience a severe disability that inhibits your ability to perform daily living activities (e.g., bathing, eating, dressing, etc.), these benefits can cover the cost of in-home care.

Other provisions, like student loan protection and cost-of-living adjustment (COLA) riders, can be beneficial for some. However, it might make more sense to increase your base policy benefit or use a future increase option instead of inflating your policy with expensive riders.

How often do pediatricians file disability insurance claims?

Based on historical claims data, pediatricians are less likely to file disability claims, putting general pediatric medicine into a low-risk occupation class. This is great news because you’ll get more competitive premium rates than other pediatric specialties that perform invasive procedures, such as pediatric cardiologists.

What types of disability insurance are available to pediatricians?

Pediatricians can explore disability insurance options with their employer, residency program or professional associations. Additionally, individual insurance plans are available and often provide the most flexibility and comprehensive coverage.

Employer group coverage

If your employer offers disability insurance, it might be in the form of short-term disability or a group long-term plan. However, group coverage often has maximum monthly benefits that fall short of a pediatrician’s salary. Additionally, any benefit payout will be taxable income if your employer is paying for your premiums.

Group disability insurance with the AAP

The American Academy of Pediatrics (AAP) offers group long-term disability insurance underwritten by New York Life. Benefits are available from $1,000 to $10,000 per month. Note that premiums increase as you age, and you must maintain AAP membership to be insured.

Source: AAP Insurance Program Brochure

Although professional associations offer their members discounted rates, they can oftentimes be more expensive than an individually-purchased plan.

Individual disability insurance policy

An independent insurance broker can search the “Big 5” carriers to find own-occupation coverage that is specialty-specific. This type of policy can serve as supplemental coverage for your existing group policy, giving you stronger income protection with a broader definition of disability.

Guaranteed standard issue policies

Pediatric residents and fellows might have access to a guaranteed standard issue (GSI) policy through their residency or fellowship program. This option provides guaranteed coverage without a medical exam and might include unisex discounts for women.

GSI programs are available through Children’s National Hospital, John Hopkins University and more throughout the country.

How much disability insurance do pediatricians need?

Most disability plans provide benefits for up to 60% of your gross income. However, this percentage might be higher or lower depending on your existing coverage and the insurance carrier.

Pediatrician disability payout example

Using data from the 2022 Medscape Physician Compensation Report, let’s say you earn the average pediatrician income of $244,000. You might be eligible for monthly disability income up to $12,200.

But how much disability insurance you need depends on your own preferences and circumstances. For example, you might not need the maximum benefit amount if you have other sources of income or a spouse who has a high income. Whereas a breadwinning pediatrician will likely want the full amount as the sole provider of their household.

Why you need to compare pediatrician disability insurance policies

For the best income protection for your pediatrician income, you’ll want to review your existing coverage and compare other options. Focus on the following:

• The definition of disability, including any language related to own-occupation coverage.
• Policy specifics, such as the coverage amount, benefit period and elimination period.
• Pre-existing medical conditions, including medications and other health problems, should be considered. If so, an independent insurance agent can compare individual options and look for a GSI opportunity with your residency program.
• Explore optional riders with a lens specific to your situation to avoid unnecessary costs.

Additionally, female pediatricians can benefit from tapping into the knowledge of an independent broker who has access to various unisex discounts to lower disability premiums.

Get a disability insurance quote for pediatricians

If you’re ready to move forward with disability insurance for pediatricians, our team can help. SLP Insurance will search for the top discounts for own-occupation coverage and guide you through policy decisions that make sense for your financial needs. Fill out the form below to get started today.