You’ve got two main types of disability insurance to consider: short term and long term. Short term disability insurance covers you for a shorter period—think a few weeks to a year. It’s perfect for those times when you’re dealing with something like a surgery, a short illness, or maternity leave.
Long term disability insurance is for the big stuff, like if you’re out of work for months or even years. It kicks in after short term coverage runs out and can keep paying you until retirement if you need it. Obviously, this is the main one people talk about.
Okay, here’s the part that can be a little confusing: the waiting period. Short term disability insurance usually has a quick start—benefits might begin after just a few days. Long term disability insurance, on the other hand, takes a bit longer. You might have to wait 60 to 180 days before you start receiving benefits, but once they start, they can last anywhere from a couple years to 65.
A while back, I had a friend who had surgery and was out of work for six weeks. Short term disability insurance made sure she still got paid while she recovered. That’s the kind of coverage you get with short term insurance. It’s there to help you keep your head above water when you’re dealing with something temporary.
And if you’re planning on having kids, this kind of insurance can be a lifesaver during maternity leave. It covers you when you’re not working due to childbirth and recovery, so you can focus on your new baby instead of worrying about bills. Make sure you talk with your insurance agent beforehand on if childbirth is covered.
Now, long term disability insurance is where things get serious. If something happens and you can’t go back to work for a long time—like a chronic illness or a severe injury—this is the coverage that steps in. It’s like having a backup plan for your backup plan. It doesn’t just cover the basics; it helps you maintain your lifestyle. We’re talking about keeping up with your mortgage, paying utilities, and all those other costs that don’t stop just because you’re not working. One policy can insure up to 60% of your income.
Physicians are a perfect example of who should have long term disability insurance. They have large student loans. They usually have higher expenses than average because of their high income. Long term disability insurance would cover those student loans and mortgage payments.
If you're not an attending yet, check out our disability guide for residents and students.
With short term disability insurance, you’re looking at coverage that lasts anywhere from a few weeks to a year. It’s pretty straightforward. But if your situation doesn’t improve, long term disability insurance would take over and can keep going for years—often until you hit retirement age. That’s a huge relief, knowing that you won’t be left hanging if recovery takes longer than expected.
At the end of the day, choosing between short term and long term disability insurance isn’t just about what’s “better.” It’s about understanding what fits your needs as a physician. We all know that life can throw curveballs, and the last thing you want is to be caught without a plan. Talking to a disability insurance specialist can help you figure out what works best for your specific situation, so you’re covered no matter what.
