The 2 Big Reasons Getting Disability Insurance as a Resident is Critical for Locum Tenens Work
/Individual Disability Insurance is a necessary evil for locum tenens physicians. When you do not have an employer to provide you with group disability insurance benefits, the task falls upon you to secure adequate disability insurance to protect your current and future income. While this may seem like a small hurdle in the process of getting started with locum tenens work, there are a couple potential big landmines here. We interviewed Jay Weinberg with Atlantic Pension Planning’s Doctor Disability division to get to the details on why acquiring disability insurance in training can be one of the smartest moves you do before graduation.
“The first, and most obvious reason is your health,” Jay explains. “The longer you wait, the more risk you have of developing a medical condition that can make obtaining a policy difficult, if not impossible.” An interesting aspect of this, and one we all can identify with, is the fact that during training doctors often do not keep up with self-care. Couple this with the impact a half a decade of hard work can have on your body, and the potential for harm exists. “Residents who take the time to secure a disability plan during training often have a close to clean health record. Each year of training can expose you to stress and health related exposures like needle sticks, bad eating in the hospital cafeteria, and a lack of exercise. This certainly can add up over the years,” according to Jay. Securing a policy early in training can lock in great rates for a very good policy. It’s a set up for success.
According to Jay, the biggest obstacle he encounters with locum tenens doctors has is also our second reason to secure a policy during training. “Proof of income can be a big brick wall for residents who enter the locum tenens world without a disability policy,” Jay explains. The reasons to lock up a sound policy during residency or fellowship wasn’t as obvious to us when we started our journey here at The Locums Life. “If you are a resident or fellow planning to pursue locums when you finish training, make sure to secure a policy while you are still in training. As a resident or fellow, you have the ability to obtain a sizeable policy without having to provide proof of income (regardless of what your income is when you secure the policy). This is extremely important because the landscape drastically changes once you finish training and are out in the real world”. If you are already doing locums work, it may not be easy to secure a policy. In order to get a policy, most insurance companies want to see that you are working at least 30 hours per week. They will request pay stubs and future employment contracts to verify income and hours. If you cannot meet the insurance company’s requirements, you will be unable to secure a policy. In the locum tenens world, especially when you are starting your first few assignments, this can prove to be a difficult situation. For those already working and considering locum tenens work, Jay had some advice. “If you are currently working as an employee and plan to pursue locums at some point, make sure to secure an individual policy while you still have employment status. Then, when you change over to locums, you simply continue to pay for your individual policy. By doing this, you will still be covered by the policy even if you are working less than 30 hours per week (as long as you are less than 65 years old).”
Put together, the evidence is clear. A healthy, young, employed resident can obtain a great disability plan at cheaper rates without issue. If you wait until you have graduated and are in the process of securing locum tenens assignments, the potential is high for some obstacles.
To inquire about individual disability insurance, feel free to contact Jay Weinberg of Atlantic Pension Planning at Jay@atlanticpension.com or call (609)432-8862. Jay specializes in assisting physicians with comprehensive disability insurance policies and represents many companies.
FAQ: Locum Tenens Disability Insurance Options
1) What is disability insurance for locum tenens physicians in plain English?
Disability insurance replaces part of your income if you can’t work due to illness or injury. For locum tenens doctors, it’s especially important because you’re often 1099, your income may be variable, and you usually don’t get employer-provided disability benefits. In other words: if you can’t work, your paycheck can drop to zero fast—unless you have a policy designed for how locums actually live and earn.
2) Why is disability insurance more important for locum tenens than employed doctors?
Employed physicians sometimes have:
group long-term disability (LTD) through the hospital
paid sick time
short-term disability benefits
HR support to navigate claims
Locum tenens physicians often have none of that. You may have:
no paid sick days
no guaranteed schedule
no built-in LTD plan
income that varies month to month
That makes disability insurance for locum tenens physicians one of the most important “boring” protections you can buy.
3) What are the main disability insurance options for locum tenens doctors?
Most locum tenens physicians choose from:
Individual (own-occupation) disability insurance (gold standard)
Group disability insurance (less common in pure locums, sometimes available via associations)
Short-term disability coverage (gap filler, sometimes paired with an emergency fund)
Business overhead expense (BOE) insurance (if you run a practice or have significant business overhead)
Supplemental policies layered on top of existing coverage
The best fit depends on whether you’re full-time locums, part-time locums, mixing W-2 and 1099, and how stable your income is.
4) What is “own-occupation” disability insurance and why is it so important for physicians?
True own-occupation means if you can’t perform the material duties of your specialty, you can receive benefits even if you’re able to work in another job.
Example: A surgeon injures their hand and can’t operate. With true own-occupation, they can still collect disability benefits even if they teach, consult, or do non-surgical work.
For physicians, this is often the single most important contract feature.
5) What is the difference between “own-occupation,” “modified own-occupation,” and “any-occupation”?
True own-occupation: can’t do your specialty → benefits pay, even if you work elsewhere
Modified own-occupation: benefits may reduce/stop if you earn income in another job
Any-occupation: must be unable to work in any reasonably suited job → harder to qualify
If your SEO focus is locum tenens + disability insurance: the phrase you want in your blog is “true own-occupation disability insurance for physicians”—that’s the physician-grade standard.
6) Do locum tenens doctors qualify for the best individual disability policies?
Often yes—but documentation matters. Insurers want to see:
stable earnings (usually through tax returns or consistent 1099 income)
medical underwriting (health history)
occupational class and duties
sometimes a minimum time practicing post-training
If you’re early in your locums career, you may have to start with a lower benefit amount and increase later as income proof strengthens.
7) How does variable 1099 income affect disability coverage amounts?
Most individual disability policies base your maximum benefit on documented income, often from tax returns (sometimes averaged over 1–2 years). If your first year is unusually high or low, it can affect what you qualify for. This is one reason many locums physicians:
keep meticulous financial records
use a CPA
plan benefits with a broker who understands physician 1099 income
8) How much disability coverage should a locum tenens physician aim for?
A common target is enough to cover:
fixed personal expenses (housing, insurance, debt)
baseline living expenses
ongoing retirement savings (if possible)
Many policies replace about 50–60% of income (sometimes less), but the real right number depends on your spend and obligations. High earners often can’t insure 100% of earnings—so you’ll need a plan that combines insurance + emergency fund + investments.
9) What is “short-term disability” and do locum tenens doctors need it?
Short-term disability (STD) covers short periods—often weeks to months—depending on the policy. Many physicians self-insure short-term disability using a strong emergency fund and then use a long-term disability (LTD) policy for catastrophic protection.
But if you have:
minimal cash reserves
high fixed costs
sole household income responsibility
Then STD can be useful—or you can shorten the waiting period on an LTD policy.
10) What is the “elimination period” (waiting period)?
The elimination period is how long you must be disabled before benefits begin—commonly 90 days for long-term disability. You can choose shorter (30/60 days) but premiums go up. Longer waiting periods reduce premium cost but require a larger cash buffer.
For many locums physicians, a 90-day elimination period + 6–9 month emergency fund is a strong combination.
11) What benefit period should a locum tenens physician choose?
Common benefit periods:
2 years / 5 years (cheaper, limited protection)
to age 65 or 67 (more expensive, strongest protection)
If you’re using disability insurance as true income protection, many physicians choose to age 65/67. If you’re later in your career or financially independent, a shorter benefit period might be reasonable.
12) Is disability insurance different for surgeons vs non-procedural specialties?
Yes—because the risk of losing the ability to do the core specialty tasks differs. Procedural specialists often place higher value on:
true own-occupation definitions
specialty-specific riders
residual disability (partial disability)
stronger protection of “material duties” definitions
13) What is “residual” or “partial” disability coverage?
Residual disability pays benefits if you can still work but your income drops due to a disability (e.g., reduced hours, fewer cases, inability to do certain procedures).
For locums physicians—where income can be tied to shifts and productivity—residual disability is extremely valuable. A partial limitation can translate into a major income hit.
14) What is “non-cancelable” and “guaranteed renewable”?
Non-cancelable: insurer can’t change terms or raise premium as long as you pay
Guaranteed renewable: insurer can’t cancel you, but can raise premiums for a class of policyholders
Physicians often prefer non-cancelable + guaranteed renewable for maximum stability.
15) What riders (add-ons) matter most for locum tenens doctors?
High-value riders include:
True own-occupation
Residual/partial disability
Cost of living adjustment (COLA)
Future increase option (increase benefits as income rises)
Catastrophic disability (for severe impairment)
Student loan rider (sometimes, depending on situation)
Not everyone needs all riders, but residual and future increase often matter a lot for locums.
16) Can locum tenens doctors get disability insurance through an association or group plan?
Sometimes. Group plans can be easier to qualify for and may have lighter underwriting, but they often have weaker definitions and less control. Group plans can be a good supplement, but many physicians prefer an individual policy as the foundation.
17) If I also work some W-2 shifts, how does disability insurance work?
You can still buy an individual policy, but insurers will look at total income and duties. If your W-2 job provides group LTD, you may want to:
understand that group policy’s definition and benefit cap
decide whether you need an individual policy to “fill the gap”
confirm how benefits interact (offsets can apply)
18) Are disability insurance benefits taxable for locum tenens doctors?
It depends on who paid the premiums and how. Often:
If you pay premiums personally with after-tax dollars, benefits are often tax-free
If premiums are paid pre-tax or by an employer, benefits may be taxable
For 1099 physicians, structure matters. Don’t set up a “deduct the premium” strategy without understanding the tax consequences.
19) Should a locums doctor deduct disability premiums as a business expense?
This is a common trap. In many cases, deducting premiums can make benefits taxable later. Many physicians prefer paying premiums personally (non-deducted) so benefits may be received tax-free. This is a CPA-level decision, but it’s a big one.
20) What about “occupation class”—does being a locums physician affect rates?
Rates are usually driven by specialty risk, health profile, age, and policy features—not simply “locums.” However, if your duties are higher risk (more procedures, more call, more exposure), classification can change. Be accurate about duties; misrepresentation can create claim issues later.
21) How do insurers define disability for a locum tenens doctor with variable hours?
This is important. Policies generally define disability based on inability to perform material duties and may look at income loss. For variable income, insurers may rely on:
pre-disability earnings (often averaged)
documented tax returns
proof of income reduction tied to disability
This is why clean financial records are not just “good accounting”—they protect your claim.
22) What’s the best way to document income for disability insurance as a locums doctor?
File accurate tax returns
Maintain organized 1099s and deposit records
Use a separate business account
Keep contracts and schedules
Work with a CPA
If you ever need to file a claim, documentation is everything.
23) What are common reasons disability claims get delayed or denied?
Common pitfalls:
unclear medical documentation
inconsistent income documentation
policy exclusions (pre-existing conditions)
mismatch between duties and stated occupation
failure to meet the elimination period requirements
incomplete forms or late reporting
The best defense is buying a strong policy and maintaining clean records.
24) What should I do before I ever need to file a disability claim?
Know your elimination period and claim process
Keep your financial documentation organized
Keep a copy of your policy and riders
Understand your “material duties” definition
Maintain a relationship with a broker/agent who can help you navigate claims
When a disability happens, you don’t want to learn the rules under stress.
25) Is disability insurance worth it if I’m already saving aggressively?
Even high savers can benefit because disability risk is “early and expensive.” If you become disabled at 35–45, the lost earnings can dwarf what you’ve saved. Once you are truly financially independent, you may reduce coverage. Until then, disability insurance is income protection—your biggest asset is your future earning power.
26) How much does disability insurance cost for locum tenens doctors?
Premiums vary widely based on:
age
specialty
health
benefit amount
elimination period
benefit duration
riders
Procedural specialties tend to pay more. Stronger definitions and richer riders cost more. There’s no universal number, but the cost should be weighed against the catastrophic impact of losing income.
27) Should I work with a disability insurance broker who specializes in physicians?
Yes, if possible. Physician-specific brokers understand:
own-occupation nuances
specialty definitions
rider tradeoffs
how to document 1099 income
how to compare carriers fairly
Not all agents are equal. The wrong policy can look “cheap” but fail when you need it.
28) What are “guaranteed standard issue” (GSI) policies and do locums doctors get them?
GSI policies are sometimes offered through large employers or groups with limited underwriting. Pure locums may not have access, but some associations or group arrangements can offer similar benefits. If you can get a strong GSI policy, it can be attractive—just confirm definitions and limitations.
29) What if I have a pre-existing condition?
Pre-existing conditions can lead to:
exclusions
I.e., they’ll cover disability but exclude claims related to that conditionhigher premiums
or denial depending on severity
A skilled physician-focused broker can help you navigate carriers and underwriting strategies (including how and when to apply).
30) What’s the “bottom line” for locum tenens disability insurance?
If you want the simplest, strongest guidance to place in your blog:
“Most locum tenens physicians should prioritize an individual, true own-occupation disability insurance policy with residual (partial) disability coverage, a reasonable elimination period (often 90 days), and a future increase option—because 1099 income can stop immediately if you can’t work.”
That sentence captures the key points people search for.
31) Quick checklist: what should my disability policy include as a locums physician?
Locum Tenens Disability Insurance Checklist
True own-occupation definition (physician-grade)
Residual/partial disability rider
Non-cancelable + guaranteed renewable (if possible)
Benefit period to age 65/67 (commonly)
Elimination period that matches your cash buffer (often 90 days)
Future increase option (especially early career)
COLA (optional but valuable if you’re young)
Clear documentation plan for income
Disclaimer
This FAQ is educational and not financial/insurance advice. Disability policy definitions vary by carrier and state. Work with a physician-focused disability broker and, when needed, a CPA to structure premium payment and benefits appropriately.