Anesthesiologist Disability Insurance: A Must-Read Guide

Working as an anesthesiologist requires a high skill level and education but also brings in a high income. According to the Bureau of Labor Statistics (BLS), the average salary for anesthesiologists is $331,190 as of May 2021. It’s a comfortable salary, but an unexpected accident or disabling health issue can compromise that financial security.

That’s why it’s important to protect your assets and loss of income with anesthesiologist disability insurance as a part of your larger financial plan.

Anesthesiologist disability insurance premium cost

Long-term disability insurance costs are based on many factors, such as your age, where you live, current or past medical issues, whether you have a history of smoking, etc.

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

Company	Male	Female
Guardian	$223	$326
MassMutual	$195	$303
Principal	$168	$287
Ameritas	$202	$292
Standard	$201	$320

The coverage amount you get for your disability insurance plan varies by the insurer. In general, you may be able to secure 50% to 70% of your income through a disability insurance policy. A good benchmark is around 60%.

As part of the evaluation process, make sure your basic expenses can be covered by the monthly benefit, too.

What’s anesthesiologist disability insurance?

Anesthesiologist disability insurance is a type of insurance for anesthesiologists that covers a portion of income for a specific period. Disability insurance is generally a good idea for all professions, but for high-earners like anesthesiologists, it can make even more sense to protect your earnings and assets.

Additionally, anesthesiologists have a very specific skill set that requires sound mental faculties and precision with their hands. Imagining the possibility of becoming disabled understandably might feel uncomfortable. However, disability insurance benefits can help you financially if a condition or health-related situation renders you unable to work.

According to the Social Security Administration (SSA), about 25% of people who are 20 years of age will be disabled before retiring.  As someone working in the medical profession, there might be a higher likelihood of experiencing an injury, illness, or accident that could affect your ability to work.

Disability insurance through a group policy with your employer might be offered, and you might be able to take advantage of Social Security Disability Insurance (SSDI). However, average monthly payments hover around the poverty level, coming in at $1,234 as of 2019.

Getting SSDI or disability insurance through your employer might not be enough to sustain your or your family’s lifestyle expenses.

Getting an additional policy gives you access to enough coverage for your needs. You might look into short-term disability coverage, which can cover up to two years of benefits, or long-term disability, which covers a few years up to the remainder of your life.

If you want a quick quote, SLP Insurance can show you own-occupation coverage options with the ‘Big 6' carriers below. Or keep reading to see more about factors in cost, coverage riders, and reasons for additional riders on your policy.

Disability insurance based on specialty

Disability insurance might cost more, depending on your specialty, since your profession is considered “invasive.”

Invasive vs. non-invasive

Invasive medical specialties include anesthesiology as well as dentists, general surgeons, plastic surgeons, and more. Non-invasive medical specialties can include family medicine, psychiatry, immunology, and more.

Because of the invasive nature of your work, insurers see you as having a higher risk of developing a debilitating injury. This higher risk can translate to an increased cost of anesthesiologist disability insurance.

Related: Disability Insurance for Dental Anesthesiologists: Costs and Benefits

Important disability features to look out for

Getting disability insurance as an anesthesiologist is a good idea to protect your finances and ensure you have some income coming in if something happens down the line. There are some important features to be aware of when looking for a policy.

The payout

Disability insurance doesn’t cover one hundred percent of your income, but a portion of it. For example, long-term disability insurance might cover up to 60% of your income.

The cost

How much you pay for anesthesiologist disability insurance premiums will vary based on your personal risk factors. This can include your age, health status, previous health history with medical conditions, whether you smoke or not, where you live, and more.

A long-term disability policy may cost 2% to 4% of your income. When shopping for disability insurance, it’s wise to request a quote from various insurance carriers.

The benefit period

You can select a benefit period that best serves your needs. The benefit period is the period when you can access disability benefits. You might be able to get a term for:

• 2 years
• 5 years
• 10 years
• Up to age 65
• Up to age 67
• Up to age 70

In other words, you can get a policy for a few years up until the time you retire.

The elimination period

Disability insurance uses what’s called an “elimination period.” Also called a waiting period, this timeframe refers to the amount of time the insurance company will wait to pay benefits to you in the event you’re disabled. You generally can choose an elimination period of:

• 30 days
• 60 days
• 90 days
• 180 days
• One year

If you have an elimination period of 60 days, you won’t receive benefits until after 60 days after your disability start date.

Non-cancelable vs. guaranteed renewable

You can choose from a non-cancelable policy or a guaranteed renewable policy. A non-cancelable policy can’t be canceled by the insurer unless you miss a payment. Under this option, your payments remain the same.

A guaranteed renewable policy allows you to renew it each year; however, insurance providers can increase their rates yearly.

Own occupation vs. any occupation

One of the most important things to be aware of is deciding between an “own occupation” definition of disability policy or an “any occupation” policy.

Own occupation means that you’ll receive benefits if you can’t perform work within your specific profession. If you can’t work as an anesthesiologist, you’re covered by an “own occupation” disability insurance policy. However, under an “any occupation” policy, you’ll only get benefits if you can’t work any other job either, like as a medical consultant or coach.

Additional riders

You may be able to tack on additional provisions to your disability insurance policy for added protection. These can include things like inflation/cost of living adjustment, which is top of mind right now for many people. Another option is residual disability/partial disability or future increases.

Where to find disability insurance for anesthesiologists

Some employers offer a discount through its group coverage option; however, always do the math to determine if the policy covers enough of your expenses. If your employer doesn’t offer group coverage, or if you’d like additional coverage, get quotes from several disability insurance companies to find the best rate. Each provider has its underwriting criteria and eligibility to qualify.

Student Loan Planner partners with PKA Insurance to offer a disability insurance discount to doctors, which includes anesthesiologists. Check them out and fill out the form below to get a quote to see what type of individual disability insurance policy coverage you’re eligible for.