Imagine waking up tomorrow and not being able to work, no more surgeries, clinic, or call shifts. For most physicians, your ability to earn an income is your single greatest financial asset, yet few stop to consider how vulnerable it is. If you’ve never heard of “own occupation” disability insurance or assumed your employer coverage is enough, this episode is your wake-up call.

Hosts Chad and Tyler explain why disability insurance isn’t just another box to check; it’s a cornerstone of financial security, especially early in your career. Whether you're still in medical school, knee-deep in residency, or just landed your first attending job, they unpack the real-world scenarios that could derail your income and why coverage matters more than you think. They even dive into misunderstood details like Roth IRA withdrawals, 401(k) loans, and the tradeoffs of different insurance riders.

By the end of this episode, you’ll not only understand why disability insurance is crucial, you’ll also know what kind to get, when to get it, and how to avoid the most common (and costly) mistakes. Because protecting your income isn’t pessimistic, it’s smart.

Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients.

• (00:00) Why they recorded the episode from a hotel room.
• (01:39) Using Roth IRA funds for a first home.
• (06:51) Comparing Roth withdrawals to 401(k) loans.
• (09:50) When med students should buy disability insurance.
• (13:32) Making disability premiums manageable in training.
• (17:03) Is disability insurance truly necessary?
• (24:09) GSI policies vs. fully underwritten ones.

We get why people look to their Roth IRA when buying their first home; it feels accessible, and technically, the IRS allows up to $10,000 of gains to be withdrawn penalty-free for a qualifying first-time purchase. But that move comes with big trade-offs. You're not just taking money out; you're giving up the compounding, tax-free growth that makes the Roth so powerful over time. For physicians, especially, whose earnings potential compounds alongside their investments, pulling from a Roth early is almost always a step backward.

Instead, we suggest exhausting smarter options first, like physician mortgages that offer zero percent down and avoid private mortgage insurance. If you're tempted to touch the Roth, it’s likely a sign that the timing of your purchase might be too soon. The takeaway: your Roth is a long-term asset. Treat it that way.

Too many physicians treat disability insurance like an afterthought, something to handle later when they’re making more or finally “settled.” But the risk of becoming unable to work, even temporarily, is real. And unlike life insurance, the odds of needing disability insurance during your working years are much higher. That’s why getting coverage early isn’t just smart, it’s essential. The younger and healthier you are, the better your pricing and options. Wait too long, and even a small health issue could disqualify you or lead to costly exclusions.

We also dig into how to make this work on a resident’s budget. Graded premium structures let you start with lower monthly costs that rise over time, giving you solid protection without gutting your cash flow. If you’re in training or transitioning into your first attending role, this is the moment to get it done. Don’t wait for “later” to turn into too late.

Guaranteed Standard Issue policies are a gift for trainees, they don’t require medical underwriting and ensure coverage even if your health history isn’t perfect. But once you’ve locked in a GSI, the smart move is to see what else might be available. We often recommend comparing it with a fully underwritten policy to check for better pricing, added benefits, or more tailored coverage. You’ve got nothing to lose and possibly a lot to gain.

And keep in mind, it doesn’t have to be either-or. For many physicians, keeping the GSI as a foundational policy and layering on another plan is the best way to maximize benefits. Especially if your career and income are about to scale, make sure your disability coverage scales with it.

The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.

• https://www.guardianlife.com

• WealthKeel LLC
• Olson Consulting LLC
• Tyler Olson on Twitter
• Chad Chubb, CFP®, CSLP® on Twitter

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