Guide to Getting Anesthesiologist Disability Insurance - Student Loan Planner

Working as an anesthesiologist requires a high level of skill 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.

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 of time. 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 your 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.

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, psychiatrist, immunologist 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 for anesthesiologist disability insurance.

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 of time 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 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 guaranteed renewable policy. A non-cancelable policy can’t be canceled by the insurer unless you end up missing a payment. Under this option, your payments remain the same.

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

    Own occupation vs. any occupation

    One of the most important things to be aware of is deciding between an “own occupation” 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 which is top of mind right now for many people. Another option is residual disability/partial disability or future increases.

    How to determine how much coverage to get

    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.

    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 own 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 policy coverage you’re eligible for.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    Guide to Getting Anesthesiologist Disability Insurance - Student Loan Planner