What Happens to Your Disability Insurance When You Change Jobs?

Key Takeaways: Employer-sponsored group disability insurance usually ends when you leave your job, but an individual policy you bought on your own generally stays with you.Some group policies include portability or conversion options that let you keep coverage after you resign, though these provisions are rare and may come with deadlines or medical underwriting.A new employer’s disability policy may protect you less than your current one, especially if it limits the own-occupation definition of disability to the first 24 months of benefits.Moving into locum tenens or another independent contractor role means arranging your own disability coverage, which can be difficult if you have a pre-existing medical condition.

Before accepting a new position, review your current policy, compare it with the new employer’s benefits and find out whether you can qualify for individual coverage.Changing jobs can mean a higher salary, a better schedule or an opportunity to move into a different type of medical practice.But before you accept a new position, there's an important part of your benefits package you need to review: your disability insurance.If your current employer provides group disability insurance, you'll generally lose that coverage when you leave.

Your new employer might offer a replacement, but the benefits could be different.And if you're moving into locum tenens or another independent contractor role, you may have to find coverage on your own.Replacing disability insurance can be especially challenging if you have a pre-existing medical condition.Before making a career change, you'll want to understand what coverage you're giving up and what options you'll have afterward.

Your group disability coverage usually ends when you leave Many employers, including hospitals and large medical groups, offer disability insurance as part of their benefits package.It's something you receive during onboarding, along with information about health insurance, retirement plans and life insurance.When I worked as an engineer in my twenties, I had disability insurance through my employer.But I barely looked at it in my benefits packet.

I was young, and the possibility of becoming disabled wasn't something I spent much time thinking about.I suspect a lot of physicians approach their benefits the same way.You see that your employer provides disability insurance, figure you're covered and move on.Employer-sponsored group disability insurance is generally tied to your employment.

Once you leave that employer, your coverage typically ends.If you've purchased an individual disability insurance policy separately, the policy generally stays with you when you change jobs, as long as it remains in force.But if you've relied entirely on employer-sponsored coverage, you'll need to find out whether you can keep your existing benefits or need to replace them.Get the best price on own occupation disability insurance SLP Insurance will find you the best price even if it's not with us.

Fill out the form below to get discounts of up to 30%.Some group disability policies let you keep your coverage Some employer-sponsored disability policies include portability or conversion provisions that let you keep coverage after you leave your job.In my experience, policies with these options are very rare.Depending on your policy, you may be able to continue group coverage or convert it into an individual policy.

You'd typically become responsible for paying the premiums yourself.Having the option to continue coverage could be valuable if you've developed a medical condition while working for your current employer.For example, say you've had group disability insurance for several years but now have a health condition that could make it difficult to qualify for individual coverage.If your employer's plan includes portability or conversion rights, you may have another way to maintain disability protection when you change jobs.

The requirements vary by policy, including whether medical underwriting applies.Before you resign, ask your benefits department or insurer whether your coverage is portable or convertible, what eligibility requirements apply and whether there are any deadlines.Residency programs may offer convertible group coverage Some residency programs offer group disability insurance that residents can convert when they leave.That option may be available at programs that don't provide access to guaranteed standard issue (GSI) individual disability insurance, which allows eligible physicians to obtain coverage without traditional medical underwriting.

If you're finishing residency, ask whether your group policy includes a conversion option before starting your first attending position.Find out when your current coverage ends, what benefits you can continue and whether conversion requires medical underwriting.Your new employer's disability insurance may provide less protection Even if your next employer offers disability insurance, you shouldn't assume the coverage will be comparable to what you have now.Employers select group insurance plans for different reasons.

They may want to provide a competitive benefits package or attract new employees.But the policy they choose may not offer the best protection for your particular medical specialty.One important difference between policies is how they define disability, especially for physicians whose work involves performing procedures.Watch for the 24-month occupation limitation Some group disability policies use an own-occupation definition of disability for the first 24 months of benefits, then switch to a more restrictive definition.

During the initial period, you may qualify for benefits if you can't perform the duties of your regular occupation.After 24 months of benefits, the policy may consider whether you can work in another occupation, subject to its specific terms.Consider an emergency medicine physician or OB-GYN who develops a condition that prevents them from performing certain procedures.They might still be able to work in another medical role, even if they can no longer perform the duties of their specialty.

Under a policy with a 24-month occupation limitation, the physician's ability to perform other work could affect whether disability benefits continue.When comparing employer benefits, I'd look closely at how each policy defines disability and whether that definition changes over time.Two employers might both offer long-term disability insurance, but the actual protection can be very different.Moving into locum tenens can make coverage harder to replace Leaving traditional employment for locum tenens work can create additional challenges if you've been relying on employer-sponsored disability insurance.

When you're employed by a hospital or medical practice, disability coverage may be part of your benefits package.But if you're moving into an independent contractor role, you'll generally be responsible for arranging your own coverage.Let's say you have an opportunity to earn more through locum tenens work.The additional income sounds attractive, but you've relied entirely on your employer's disability policy.

You also have a pre-existing medical condition that could prevent you from qualifying for individual insurance.If you knew you were giving up your employer-sponsored coverage and couldn't qualify for a replacement, would you still take the job? Depending on your circumstances, the higher income might not be worth the benefits you're giving up.Before committing to locum tenens work, find out whether you can qualify for individual disability insurance and what coverage would be available.Review your disability coverage before accepting a new job When you're comparing job offers, salary will naturally get a lot of attention.

But you'll also want to consider whether the new position provides disability benefits comparable to what you currently have.Before leaving your employer, I'd recommend taking these steps: Review your current policy: Find out when your group disability insurance ends and whether it includes portability or conversion options.Check your new employer's benefits: Compare the disability coverage offered at your new position with your existing policy, including how each defines disability.Consider your medical history: If you have pre-existing conditions, find out whether you can qualify for individual coverage before giving up your current benefits.

Understand what you're giving up: Consider whether higher pay or other benefits make up for any disability protection you may lose.Sometimes the grass really is greener on the other side.But you may also discover that your current employer offers disability benefits you can't easily replace.If you're considering a career change, review your existing policy and explore replacement coverage before resigning.

Knowing your insurance options will help you evaluate the full value of a new job offer.Compare disability insurance quotes and save SLP Insurance will find you the best price on own occupation coverage, even if it's not with us.Fill out the form below for a quote with up to 30% discounts.FAQs: Disability insurance when changing jobs Does disability insurance transfer when you change jobs? It depends on the type of policy.

Group disability insurance through your employer is tied to your employment and typically ends when you leave.An individual disability insurance policy you purchased on your own generally stays with you as long as you keep paying the premiums.Can I keep my group disability insurance after I leave my employer? Sometimes.A small number of group policies include portability or conversion provisions that let you continue coverage or convert it to an individual policy after you resign.

You’d typically take over the premium payments yourself, and the policy may have eligibility requirements or deadlines.Ask your benefits department or insurer before you give notice.Do locum tenens physicians get disability insurance? Generally, no.Locum tenens physicians usually work as independent contractors, so they don’t receive employer-sponsored disability benefits.

You’ll need to arrange your own individual coverage, and your ability to qualify may depend on your medical history.