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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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Imagine this: You wake up one morning, ready to start clinic, round on your patients, or maybe even scrub in for a big case. But something unexpected happens. Suddenly, you can’t work. No surgeries, no shifts, no paycheck. With all that training, all those years of sacrifice, what happens if the income you’ve counted on just stops? For physicians, your ability to earn is your greatest asset—and losing it even for a little while can send your financial life into a tailspin.
This isn’t fear-mongering. It’s reality. Whether you’re a med student, resident, or a seasoned attending, most docs seriously underestimate the risk—and cost—of losing their income. Let’s get into how physicians can protect what they’ve worked so hard for with the right disability insurance and smarter financial choices.
Before we roll up our sleeves here, picture this: Two financial nerds, fresh off a speaking gig, huddled in a loud San Antonio hotel trying to carve out enough quiet to record this episode. Why? Because connecting with other physicians, answering real-world questions, and laughing about quirks like “don’t say Michigan, say UMich” is what makes this podcast tick. (Honestly, we got to be in the same room for the first time. Wild.)
This episode is all about listener questions. We know some of you waited forever to hear answers (yup, there was a tech fail in our mailbag process—never again!). We love how many of you are sending in your real, sometimes “embarrassingly specific” financial questions. Please, keep them coming. We’re here to help you figure out this money maze.
Let’s start with a classic med school or early-career doc moment. The question: Can I pull money out of my Roth IRA for my first house? The answer is—yes, but with some key strings attached.
Here’s where it gets tricky and where so many physicians get tripped up:
Bottom line: Know which kind of Roth IRA dollars you’re working with before you even think about pulling money for that down payment.
Hitting that Roth IRA isn’t just dipping into any old pot. This is your rare, tax-free retirement growth right here. If you yank funds, you can’t put it back (unless it’s within 60 days and you play by the IRS's strict rules). Your Roth is where the magic of compounding and tax-free withdrawals happen later in life.
Few things make financial advisors groan as loudly as hearing “I cashed out my Roth to buy a house.” It’s almost always the last option you want to use unless you are in a true bind.
Physicians have unique doors open to them. Before you tap the Roth IRA:
Let’s stack these side by side, doc style:
For most, a 401(k) loan is less damaging than permanently pulling Roth IRA dollars.
It’s tempting to make moves fast, especially with white coat fatigue and the carrot of homeownership dangling. But ask yourself: “Am I buying this because I’m ready, or just because I want out of rent?” If you need to scrape together funds from every corner, pause! Save up. Give yourself some breathing space. Owning a home should feel exciting, not like a stress bomb waiting to detonate.
Imagine you’re still in med school, and a freak injury or illness hits. You can’t finish training, and future income vanishes. That’s where disability insurance for medical students comes into play.
Many medical schools partner with insurers to offer group disability policies. If your school does, or if you can get a guaranteed standard issue (GSI) policy through your residency, you’re ahead of the curve. Buying early lets you lock in coverage before any medical issues might block you later. This isn’t just “be prepared” Boy Scout stuff. This is real-world risk protection.
Want more details? Check out this solid breakdown on disability insurance for students and residents.
Let’s call these the “Big Five” for physician disability insurance:
These companies make policies that actually fit how you work and what you earn. Don’t just trust your friend’s cousin who does insurance on the side.
A GSI policy lets you enroll without full medical underwriting—meaning even if you had mono last year or broke your leg, you’re still in. Not every residency has these deals, and sometimes even your program coordinator won’t know. Reach out to knowledgeable financial professionals or ask around (shameless plug: reach out to the podcast).
Training budgets are tight. If your leftover cash each month hovers around $300, try a graded premium policy. This means you pay less to start, then more as your income rises. Many new doctors do this, but remember to switch to a level premium once you level up to attending salary. Build your emergency fund at the same time—aim for an initial $1,000, then grow it to a month of expenses.
Owning all the right insurance is great, but not if you’re living off of ramen with zero savings buffer. Make sure you shore up an emergency fund:
If monthly premiums feel like too much right now, see if you can pay annually—and free up monthly cash flow for real-life needs.
Here’s a hard truth: You’re more likely to become disabled (even short-term) than to die young. That’s why disability insurance costs way more than life insurance. Insurers know the numbers. It’s not some insurance company conspiracy, it’s just mathematical reality.
Umbrella policies? Super cheap because they're rarely used. Disability coverage? Pricier, because it’s actually claimed more often.
Your ability to make physician money is the engine that powers everything—your home, your kids’ future, student loan payments, even your retirement nest egg. Lose that ability, and the whole house of cards starts wobbling. Especially in your first 15 years, before you’ve had a chance to build real wealth.
Premiums for disability insurance, especially for women, can be a bit of a shock. But here’s the thing: You don’t need it forever. Once you hit “financial independence” territory, you can drop those premiums. Let insurance motivate you to save more so you can lose it sooner!
Not all add-ons (riders) are worth the cost. Here’s a quick cheat sheet:
The best-reviewed agents will help you choose exactly what you need—and skip the fluff.
Let’s keep it simple: Own occupation disability insurance means the policy pays if you can’t work in your medical specialty—even if you could flip burgers or teach yoga part-time.
Compare this to “any occupation” coverage, where you have to be unable to do any job just to qualify. That’s a much steeper hurdle to clear.
Want to dig deeper? Check out Own Occupation Disability Insurance—A Key for Doctors.
A Guaranteed Standard Issue (GSI) policy is group disability insurance you get through your program—no health questions asked. It’s tailor made for residents and fellows. If you’ve got a little (or even a lot) of medical history, this is a lifesaver. Your coverage and rates are set, which keeps things simple.
Once you have your GSI policy locked in, you can see if you qualify for a regular, medically underwritten policy. Why bother?
Female physicians, in particular, often find GSI group rates can’t be beaten and keep these as their base. But it never hurts to get a side-by-side quote.
Some in the insurance world freak out if people drop GSI policies, worrying about market stability. Here’s the reality: That’s not your job. Your job is to protect yourself and your family. If individual policies look better, consider making a switch or stacking policies.
You get the best deals on coverage while you’re young, healthy, and still in training. Moving states? Moving up in income? It’s time to compare again. Sometimes, you’ll keep an old policy for the base and add new coverage as you level up.
Want to nerd out more? Here’s who and what we trust:
Got more burning financial questions about life as a physician? Let’s keep this going—drop them for the next mailbag episode! Stay smart, stay covered, and keep building the future you deserve.
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.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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Conversations helping graduating medical students to attending physicians build a strong financial foundation
