Frequently Asked Questions

Q: What exactly is disability insurance, and how does it protect my income as a physician? 
Disability insurance is a form of income protection that pays you monthly if an illness or injury prevents you from working in your medical specialty. As a physician, this type of insurance is important because it protects your most value asset – your income. 
  
Disability insurance provides you with a monthly cash benefit that replaces your income when you're unable to work due to illness or injury. It does not reimburse you for: 

• Medical bills 
• Hospital stays 
• Rehab costs 
• Medications 
• Medical procedures 

You can use the payout to support your current lifestyle, covering expenses like: 

• Rent or mortgage 
• Student loans 
• Groceries  
• Bills 
• Childcare
• And more 

 
Q: Can disability insurance help ensure I don't miss my student loan payments?  
Yes it can. With a student loan rider attached to your policy, you'll receive an extra monthly benefit when on disability specifically earmarked for your student loan payments. Your regular disability insurance benefit will still cover your living expenses, but this additional amount will ensure you're able to make student loan payments. Without this rider, you can still make student loan payments, but the funds will have to come from your regular disability insurance benefit – reducing the amount you have to cover monthly expenses. 
 
Q: What does “own‑occupation” coverage mean for physicians? 
You'll see language like this associated with your disability insurance coverage. It means you're considered totally disabled if unable to perform the material and substantial duties of your occupation. If you're an MD or DO, and more than 50% of your income comes from performing surgical procedures or providing hands-on patient care, and you cannot continue doing either of these because of injury or illness, you'll also be considered totally disabled. 
 
Once this is established, your benefits will not be reduced even if you're working in another occupation. 
 
Q: Why are disability insurance rates lower during residency and fellowship? 
Many insurance premiums are age-based, so the younger you secure a policy, the more likely you'll be to get a lower rate.  Often, rates begin to climb as soon as you graduate and become an attending physician. 
 
You may also be eligible for a permanent 10% discount as a resident. 
 
Q: Can I change my coverage later when my income increases?  
As your income grows, you can increase your disability insurance coverage. Make sure you have an Increase Option without medical underwriting rider in your initial disability insurance policy. This option becomes available around the anniversary of when your policy went into place, and will allow you to increase your monthly coverage by a set amount. 
 
Q: Do I need a medical exam to qualify for disability insurance?  
Once you complete your application for disability insurance, you will move into underwriting. A medical questionnaire and examination of your medical records may be part of this process and a medical exam may be required. This is typically based on your medical history and the amount of coverage you're requesting and isn't always necessary. If a medical exam is required, you'll be notified and instructed on next steps. 
 
Q: What happens if I have pre‑existing conditions? 
While a pre-existing condition won't automatically disqualify you from getting disability insurance, there may be an impact. Anything in your medical history can count as a pre-existing condition, including: 

• Chronic conditions 
• Abnormal labs or imaging 
• Prescription history 
• Surgeries (past or planned) 
• Mental health treatment
• Back or joint issues 

 
More common than getting denied, you may get approved with exclusions for disability insurance. An exclusion is a clause added to your policy that states the insurer won't pay benefits for a certain condition, body part, or risk factor. It will directly correlate to the preexisting condition in question and be very specific. 
 
Q: How long do benefits last? 
Most policies are in place to cover you while you're working, but there are plenty of different lengths to pick from. Policies can be for a specific time such as 2 or 10 years, or extend to a specific age like 65, 67, or 70.  
 
Q: What is an insurance rider and which ones should physicians consider adding to a disability insurance policy? 
An insurance rider is something added to a basic policy that helps tailor that policy to your needs. A rider can add or enhance an existing benefit or change how a policy works. Common, physician-focused disability insurance riders include: 

• Cost of Living Adjustment (COLA): increases your benefit amount each year during a long claim to keep up with inflation. 
• Catastrophic Disability Rider (CAT): pays an extra benefit if you lose the ability to perform basic daily activities. 
• Student Loan Protection Rider: pays out an additional amount specifically for student loan payments during disability.  
• Increase Option: gives you the opportunity each year, around the anniversary of getting your policy, to increase monthly benefits by a set amount. 
• Partial Disability Benefit Rider: pays out benefits when, solely due to injury or sickness, you suffer a loss of income of 15% or more. Benefits continue until you recover and recoup the lost income. 
   

If your program has a Guaranteed Standard Issue (GSI) policy 
 
Q: What is a Guaranteed Standard Issue (GSI) policy, and how do I know if my program offers one? 
This type of disability insurance is only offered in certain resident/fellowship programs. Unlike other disability insurance coverage, a GSI gives residents and fellows guaranteed approval¹ with no medical exams or health questions. If your program offers a GSI, this is one way to get coverage without having to worry about exclusions. Discounted pricing may also be available. 
 
Q: Why is GSI especially valuable for residents with pre‑existing conditions? 
Anyone who qualifies for a Guaranteed Standard Issue (GSI) Disability Insurance policy won't have to go through medical underwriting. This is especially valuable for residents or fellows with preexisting conditions because it removes the medical barriers that may normally make getting a policy without an exemption challenging. For some, it can be the only way to ensure disability coverage. 
 
Q: Am I automatically eligible for the GSI plan at my institution?  
Residents and fellows in programs that have a GSI are eligible as long as they meet the program's criteria. For a list of the criteria you must meet, send us an email that includes your name, school, program, and contact information. The team at Physician Financial Group can answer your questions and help you decide what coverage is best. 
 
Q: Are there any reasons someone might be ineligible for GSI? 
If you fail to meet the criteria of the GSI policy, you will be ineligible to apply and will have to go through medical underwriting in order to get disability coverage. Some primary scenarios where ineligibility might occur include: 

• Applying for coverage outside of Guardian: while it's okay to apply for DI insurance anywhere, if you're declined or it's determined you need modified coverage by another insurance carrier more than nine months after your residency program hire date or in the past five years (whichever is shorter), you may not be eligible for the GSI.  
• Not part of the eligible trainee group: Rotating medical students, visiting residents, research-only trainees, part-time clinicians, etc. are not considered to be a resident or fellow of the program and can't receive the GSI when applying for disability insurance. 
• Missing the enrollment window: A Guardian GSI policy is available throughout your time as a resident/fellow and for 90 days after graduation. If you miss this window you can still apply for disability insurance, but you'll have to go through medical underwriting and could face exceptions if you have any complications in your medical history. 

 
Q: Does the GSI policy include own‑occupation coverage?  
A Guardian GSI Policy includes Enhanced True Own Occupation language which allows you to collect benefits when a disability leaves you unable to continue doing your specific job. This language is uniquely worded for physicians because it allows you to keep working in the medical field as long as you're not doing the same job you did prior to going on disability.  
See question above on 'own occupation' for more details. 
 
For example, if you're a cardiac surgeon who develops chronic spinal/back issues that make it so you can no longer stand over people to operate, but you want to continue working in the field, you could become a faculty member in a resident program and help others learn to do what you did. Because you're no longer operating, but teaching, you'd still be eligible for your disability benefits. 
 
Q: What riders are available with GSI Disability Insurance? 
The same riders available with a non-GSI disability insurance policy are available with GSI. See the question on riders above for information on a few basic options , and discuss which are right for you with your financial professional.  
 
Q: If I have a GSI policy, can I add more coverage later if my income increases? 
Yes. Guaranteed Standard Issue (GSI) Disability Insurance typically includes an Increase Option rider which allows you to increase your monthly benefit without any medical underwriting. This option becomes available around the anniversary of when your policy went into place.  
 
Q: What happens to my GSI policy when I graduate? 
Your GSI Disability Insurance policy stays with you after you graduate and follows you to your next destination. As a built-in policy benefit, you have non-cancellable and guaranteed renewable coverage. This means until your policy expires:  

• It cannot be cancelled 
• Premiums cannot be increased 
• Policy provisions cannot be changed 

Should you wish to renew your policy after it expires, you'll be subject to current rates as long as you continue to be gainfully employed, full-time, at least 10 months out of the year. 

Q: Will my premiums change after residency? 
This depends on the type of policy you have. Graded premiums increase every year from the time you purchase the policy. A fixed policy sets a premium price at the start and it's what you pay for the duration of the coverage. There's no increase in cost, but you will most likely pay more upfront. 
 
If you increase coverage at any point after your residency, your premium will go up to include the expanded coverage. 
 
¹for eligible applicants, defined as those meeting the eligibility criteria set by Guardian for GSI Disability Insurance. 
 

 
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. This material is intended for general use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation. 8775402.1 (Exp. 3/28)