Mental Health, Physician Burnout, and Disability Insurance

By Travis Christy, White Coat Insurance

In recent years, the medical community has witnessed a concerning rise in physician burnout, a phenomenon that significantly impacts both personal well-being and professional performance. A 2024 Medscape survey revealed about 50% of physicians experienced burnout, marking a notable increase from 42% in 2018 (though it's slightly lower than the 53% that was reported in 2023). This trend is not just alarming but also indicative of a deeper systemic issue within the healthcare industry. The consequences of this burnout crisis extend beyond the emotional toll on healthcare providers; they also raise questions about the role of disability insurance in safeguarding physicians’ mental health.

With more than 20% of physicians reporting symptoms of depression and a significant portion distinguishing between mild and clinical depression, the intersection of mental health and disability insurance has never been more pertinent.

As we delve into the ins and outs of this issue, it is essential to consider the data and the stories behind these numbers. The statistics show there’s an urgent need for supportive measures and systemic changes to ensure the well-being of those who dedicate their lives to caring for others.

Is Mental Illness a Disability?

One of the questions regarding mental health and disability insurance is whether mental illness qualifies as a disability. The answer largely depends on the severity and impact of the mental health condition on an individual's ability to perform the material and substantial duties of one’s job. In general, mental illnesses that impair daily functioning and hinder the ability to work may be considered disabilities. Common mental health conditions that may qualify as disabilities include depression, anxiety disorders, bipolar disorder, post-traumatic stress disorder (PTSD), schizophrenia, and certain personality disorders.

However, it's essential to note that not all mental health conditions meet the criteria for disability status, and eligibility may vary depending on individual circumstances and policy terms.

Applying for Disability Insurance with Mental Health Pre-Existing Conditions

Obtaining disability insurance coverage when dealing with a current mental health condition can be challenging, but it’s not impossible. Insurance companies typically assess applicants with mental health issues on a case-by-case basis, considering factors such as the severity of the condition, treatment history, and functional limitations. While some insurance carriers may be more cautious when underwriting policies for individuals with mental health disorders, others may offer coverage with exclusions and limited benefit periods. Also, it depends on the severity and history of the condition for whether an insurance carrier will offer coverage.

For individuals with pre-existing mental health conditions seeking disability insurance, transparency during the application process is crucial. Providing the necessary medical documentation to support their case is essential.

In one case I was involved with, a young physician who had received training abroad had been taking anxiety medication consistently for 10 years. His anxiety was well-controlled, and as a result, the insurance company he chose offered an excellent deal: a 10-year benefit period “per occurrence” with coverage up to age 65. The policy also included a mental nervous/substance abuse exclusion, meaning disabilities related to those specific conditions would be excluded from coverage. Despite this, he appreciated the offer, recognizing that numerous other illnesses or injuries could impact his ability to work effectively and reduce his income or that he'd be unable to work completely.

Applicants may run into issues in obtaining new coverage when there’s a recent mental health diagnosis, typically within the last 1-3 years. In such cases, an insurance carrier may postpone an offer until more time has elapsed to ensure that any treatments are effective for the applicant. However, if there’s a demonstrated history of stability in prescribed treatment and consistent follow-up with doctors over a longer period, an insurance carrier is more willing to make a disability insurance offer for new coverage. If there could be difficulties in obtaining disability coverage, it may be prudent to consult one of WCI's vetted insurance agents to see what’s available to you.

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If You’re Healthy with No Pre-Existing Conditions, Buy Now!

If you’re a physician or anyone considering disability insurance, remember this: apply before problems arise. Even if you feel perfectly healthy and don’t anticipate mental health or substance abuse issues, it’s smart to secure disability insurance while you’re still in good health. Why? Well, consider the stats. Disability can strike unexpectedly during our working years. Research shows that approximately 1 in 4 people will experience a disability before they retire. These disabilities can range from physical injuries to mental health conditions. We don’t have crystal balls and we don’t know how or if we’ll get disabled, but the statistics are high. And disabilities due to mental health issues are something that should be taken seriously.

A few years back, a Certified Registered Nurse Anesthetist (CRNA) called me. The urgency in their voice was clear: “I heard you sell disability insurance.” When I asked what was going on, it turned out they had recently undergone treatment for a medical condition, and they were struggling to continue working. Unfortunately, they had waited until after becoming disabled to seek coverage. The lesson here is crystal clear: disability income protection works best when obtained proactively—while you’re still healthy. Don’t wait until an unexpected event occurs. Secure your financial safety net now, so you can focus on your career and well-being without worry.

Remember, the best time to get disability insurance is when you can get it—before problems arise. Get it now while you’re healthy!

Mental Nervous/Substance Abuse Options — What to Look For

All five of the major disability insurance carriers offer full mental/nervous and substance abuse coverage for the entire benefit period—whether it’s up to age 65, 67, or 70. With these unlimited coverage options, a physician can go on a mental or substance abuse disability claim without worrying about benefits stopping after a few years; however, choosing this option can increase the policy cost.

On the other hand, you may have a choice to take a discount and limit mental health/substance abuse coverage. All of the Big 5 disability insurance carriers provide an option to limit the benefit to 24 months over the life of the policy. This means if a doctor goes on a mental or substance abuse-related claim, their time on claim is capped at 24 months of benefits—typically until age 65. By choosing this limitation, however, they may qualify for a 10% policy discount. MassMutual offers a unique advantage by providing a 24-month “per occurrence” limit on its base policy, unlike other carriers that impose a 24-month lifetime total.

With that being said, there are certain MD/DO specialties—and some dental and non-medical/non-dental occupations—that have no choice and are required to have a mental/nervous and substance abuse coverage limitation. As of this writing, those occupations include anesthesiologists, CRNAs, ER physicians, and pain management physicians—all of whom face a mandatory 24-month mental/nervous/substance abuse limitation across carriers (with gynecologists and OB/GYNs affected by Ameritas). General dentists (Guardian, MassMutual) and pharmacists (Principal) might also encounter this limitation with certain carriers.

Keep in mind that some carriers impose limitations on all contracts in particular states, such as California, New York, Louisiana, Florida, and Nevada. Additionally, those considering a Guaranteed Issue Disability Contract should be aware of the mandatory 24-month limitation associated with such policies.

More information here:

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The Bottom Line on Mental Health, Disability Insurance, and Proactive Planning

The question of whether mental health challenges—such as depression and anxiety—qualify as a disability is complex. Severity and impact play a crucial role in determining eligibility. Mental health conditions that significantly impair daily functioning and hinder work may qualify. However, not all mental health conditions meet the criteria for disability status, and individual circumstances matter.

When applying for disability insurance with pre-existing mental health conditions, transparency is key. Providing the necessary medical documentation supports your case. Consider real-life examples like the young physician with anxiety medication. While exclusions exist, recognizing the broader risks—beyond mental health—is essential. For those seeking new coverage, recent mental health diagnoses can pose challenges. Demonstrated stability in treatment and follow-up matters. And if obtaining disability coverage becomes difficult, it’s always good to consult one of WCI's vetted insurance agents to see what’s available to you.

Remember, regardless of your health status, act now. Disability can strike unexpectedly. Secure your financial safety net while you’re healthy—it’s a decision that impacts your future well-being.

Have you ever claimed disability insurance for mental health issues or burnout? Was it a difficult process? How did it turn out?

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