Safeguarding Your PA Paycheck: The Ins and Outs of Disability Insurance

Physician assistants (PAs) are the unsung heroes of healthcare, shouldering the same responsibilities as their physician counterparts. With this high-level role and the required higher education comes a rewarding paycheck — about $127,000 per year on average. 

However, that impressive salary often comes with a hefty side of student loan debt, typically around $112,000 when you finish school.

This higher debt load makes protecting your earning power even more crucial. Since you're performing many of the same patient care duties as physicians, shouldn't you safeguard your income just like they do?

Physician assistant disability insurance: What’s it going to cost you?

The disability insurance rates for physician assistants are actually pretty favorable. You’re in the second-best risk classification (usually out of six) with most “Big 5” disability insurance companies. 

Why aren’t PAs in the top spot? This should clue you into the fact that PAs have an element of risk of becoming disabled. After all, you're not just sitting behind a desk. You're hands-on with patients, exposed to various illnesses, and often working long hours. All these factors increase your chances of getting sidelined.

The Social Security Administration estimates that one in four working-age adults will die or experience a disability at some point in their career. These policies make sure your life doesn’t implode if you face one of these disabling events. 

Now, let’s talk numbers. The rates below are for a 31-year-old PA living in Kansas:

	Male	Female
MassMutual	$192	$304
Principal	$191	$345
Guardian	$184	$291
The Standard	$183	$288
Ameritas	$149	$211

Note that these rates aren't one-size-fits-all. Your actual costs vary based on your age, state of residence, general health and discounts available.

Why do physician assistants buy disability insurance?

It’s no secret that higher incomes come with higher expenses. Do you like your house or condo? Disabilities are the cause of 50% of all foreclosures in America. If you have children, how much is their daycare? Or their private school tuition? By the way, if you have private student loans, you must repay them even if you become disabled.

“But wait,” you might say, “What if I’m married to another high earner?” Unfortunately, about a third of marriages end if one of the partners contracts a chronic illness. That’s why it’s crucial to protect both incomes. As awkward of a conversation as that might be, there’s no way of knowing how a disability will truly affect your life until it happens.

And if you think you can rely on Social Security Disability Insurance? It isn’t enough for a PA by itself. As of 2024, the average monthly benefit is just $1,538, with the maximum being $3,822 for 2024 — that isn’t much compared to the $10,500+ monthly average PA salary. The definition of disability is much more strict: you must be unable to do any “substantial gainful activity.” For a private policy, you only need to prove you can’t do your job as a PA.

If any of this strikes a chord with you, fill out the quick quote form below. I'll crunch the numbers and show you how to keep your financial future secure, come what may.

What about your employer's group disability plan?

If your employer offers a group disability plan, it is likely woefully inadequate. Here are a couple of ways I see these plans cut corners:

The employer pays the premiums

Sure, it sounds awesome that your employer is footing the bill for premiums. But they’re doing it because they can deduct the premiums as a business expense on their taxes. And if you ever need to claim benefits, the amount you get is taxable. A policy you buy yourself pays out tax-free.

Related: Can You Have Two Disability Insurance Policies? Yes – Here’s Why You Should

The amount of coverage is misleading

A common plan might say it’ll pay “60% of pre-tax income up to $5,000 per month.” So, no matter how high your income is, the plan will never pay more than $5,000 each month. If you’re pulling in $200,000 a year, that $5,000 cap is a significant income shortfall.

The definitions of disability or benefit period are limited

I see many employer plans that claim to offer “own occupation” coverage for 24 months, then switch to any reasonable occupation. This could mean you only get two years of potential benefits. After that, if you can flip burgers, you might be out of luck. Compare that to a private policy that could keep you covered until you turn 65. 

The mental disability and substance abuse benefits aren’t there

It is very rare for an employer-sponsored plan to allow unlimited mental benefits like a private plan would. This is becoming more important every single year as increasing numbers of young people are being diagnosed with anxiety and depression. 

What riders should a physician assistant have on their disability policy?

Now that you know why disability insurance matters for PAs, let's talk about what to look for in a policy. Here are the key riders you'll want to consider.

Own occupation definition of disability

You might have heard of this before. It’s frequently called “specialty-specific” disability insurance. This means that if you can’t do your job as a PA, the policy pays your full benefits. It doesn’t matter if you can still work another job — you’re covered. 

This is a must-have for any physician’s policy, and I’d argue it’s just as crucial for PAs.

Partial disability rider

Some companies call this residual disability, depending on the carrier. A typical definition of a partial disability rider would be, “If the insured loses 15% or more of their income due to injury or illness, the policy will pay out a partial benefit.”

That payout scales directly with the percentage of income lost. So, if you lost 30% of your income? It pays 30% of the monthly benefit amount. This rider is especially valuable in cases like chemotherapy, for example, where you might work some days but are too fatigued to work a few days after the chemo. 

Cost of living adjustment

The cost of living adjustment (COLA) is the inflation rider. Typically, it increases your benefits by 3%, compounding every year that you remain disabled. After last year’s egg prices, the inflation rider speaks for itself. 

You might think a monthly benefit of $5,000 is plenty now, but what kind of purchasing power would that have 20 years from now? With this rider, if you were disabled for 20 years, you’d receive $9,030 a month by year 20 instead of the original $5,000. 

It can be one of the more expensive riders, but that’s because it really puts the insurance company on the hook for a ton of money if you were disabled from work permanently early in your career. I recommend having this if you’re under the age of 45 when applying for a policy, possibly up to age 55, depending on your financial situation.

Future increase rider

The future increase rider might be the most confusing add-on. Companies have a couple of different ways to allow you to bump up your benefits in the future, with no additional medical underwriting, I might add! 

• Option 1: The future increase option. This lets you increase benefits every year if you financially qualify for it. Great, but you’ll pay an additional premium for this privilege. 
• Option 2: The benefit increase rider. This will generally require that you increase your benefits every three years. The positive is that this rider is free.

You can ask your insurance agent about the pros and cons of each. Just remember that you definitely want one of them. Note that if you have a Principal policy, this is called Maximize Your Benefits.

Catastrophic disability rider

The catastrophic disability rider is purely optional, but I’m a fan of the amount of benefits it can provide versus the low additional premium it costs. 

If your disability is so severe that you can’t do two of the six tasks of daily living (think: feed yourself, bathe yourself, use the bathroom by yourself), then the policy pays an extra benefit on top of your monthly benefits. The extra benefit can cover the cost of hiring a caregiver or allow a spouse to take time off work to provide care.

Student loan rider

I would like to believe that we are experts in this rider compared to other insurance agents. If you’re collecting disability benefits on your policy, the student loan rider pays an additional amount specifically for student loan payments while you remain disabled. 

In general, if you have private student loans or plans to refinance in the future, I would recommend it. A private company will still want their money if you’re disabled. If you have federal loans and you become permanently totally disabled, the loans get discharged completely.

Related: How to Find the Best Disability Insurance If You Have Student Loans

Who should you buy PA disability insurance from?

As a PA, you've put in the hard work to build a great career. Don't let that slip away because of something you can't control. Disability insurance isn't just a safety net – it's peace of mind. It means knowing that if life throws you a curveball, you're covered.

Remember, your employer's plan probably isn't enough. You need a policy that’s actually got your back — one that protects your income and lifestyle. It might seem like a hassle now, but trust me, you'll thank yourself later if you ever need to use it.

So, here's my pitch: I’m an independent agent, which means I can get you a policy with any insurance company — I’m not tied down to any one company in particular. This lets me search for the lowest rates, as well as the best company, for your situation, with no strings attached.

Best of all, if we can find someone who’s offering a better discount than we do, I’ll tell you about it (and even give you their contact info). Why? Because your financial security is what matters most. Fill out the quote form below to get some free, personalized quotes. It might just be the smartest financial move you make this year.