Disability insurance for doctors costs more than other coverage because physicians face higher odds of long-term disability. The video breaks down specific costs and explains why the expense is worth it, plus when you might drop the policy as you build wealth.
Unlike cheaper insurance policies like term life and umbrella insurance, physician disability insurance is expensive. Although not quite as expensive as your malpractice insurance, the reason it costs so much is that it actually gets used. The likelihood of you acquiring a long term disability during your working years is approximately seven times as high as your risk of dying in those years. A typical policy bought on a healthy doctor in their 20s or 30s will cost something between 2% and 6% of the benefit. So if your monthly benefit is $10,000, expect to spend $200 to $600 per month for that policy. Perhaps the sticker shock you get upon being quoted prices will motivate you to reach financial independence as soon as possible so you can cancel the policy.
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