Workplace Insurance Benefits: Options Commonly Offered & If You Should Take Them
- Mar 25
- 5 min read
Physicians in our online physician communities who are starting new jobs and are going through the benefits enrollment process often have questions about which options to choose. Employers often offer a variety of different group insurance plans, and understanding which ones you need (and which don’t offer enough, or suboptimal, coverage) can significantly impact your financial security and peace of mind. Knowing the types of insurance typically available, their purpose, and whether they’re worth enrolling in can help you make informed choices to protect both you and your family.
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Common Workplace Group Insurance Benefits and Options Offered by Employers
While these might not be available to all physicians in all positions, these are the common types of insurance employers may include as part of their employee workplace benefits package.
Health Insurance Through Your Employer
Health insurance is typically offered, though it may not be available through a small, independently owned private practice. As doctors are well aware, health insurance covers medical expenses such as doctor visits, hospital stays, and prescription medications.
Many employers subsidize premiums, which can make this option more affordable than individual plans, so most of the time, taking the health insurance offered by your employer is a good idea. Even if you’re healthy, having coverage can help protect you from unexpected bills in medical emergencies.
If there’s a high-deductible health plan (HDHP) available, it may qualify for a Health Savings Account, which you can leverage as a stealth retirement account for tax-free savings and growth. If you have access to an HDHP and it fits your medical needs, this can be a great option for doctors.
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If you aren’t offered health insurance through your employer, you should consider getting a plan through the Marketplace, even if it’s just a catastrophic coverage policy.
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Group Dental and Vision Insurance Plans Through Work
Dental and vision plans are also commonly offered as supplemental benefits along with health insurance. Routine checkups are typically not expensive, but procedures and vision correction (glasses, contact lenses, etc.) can add up quickly.
If your employer heavily subsidizes these plans (many do), these are generally worth considering if you plan on using these services, though it’s important to understand the specifics of the plan offered, as many plans, especially for dental, have an annual maximum coverage limit.
Life Insurance Through Work
Group life insurance policies are also common through larger employers. Employer-provided life insurance plans typically offer only a basic coverage amount, usually about 1x-2x your annual salary. This is often not sufficient coverage for what physicians need. Life insurance policies through work have other restrictions as well, which we’ve covered in depth separately in our article on should you get life insurance through your employer.
If your employer heavily subsidizes a group life insurance plan or offers it for free, this can be a great supplemental option, or an option for physicians who can’t qualify for an individual policy as group plans typically don’t require medical underwriting.
In general, however, we recommend getting your own term life insurance policy through an insurance agent that works with physicians. This will provide enough coverage to protect your loved ones, allows you to purchase in a way that reflects your changing financial status and needs, and importantly, that you can carry with you from job to job.
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Disability Insurance Offered By Your Employer
Group disability insurance coverage is also often offered by large employers and typically comes in two separate forms:
Short-term disability
Long-term disability
Disability insurance provides income replacement if you are unable to work due to an injury or illness. Disability insurance is often overlooked by new physicians starting their careers, but it’s one of the most important protections you can have in place as a high-income earner.
Like life insurance, however, long-term disability insurance policies offered through your employer typically aren’t the best option when compared to an individualized policy secured through an insurance broker who works with physicians. This should be seen as a supplemental option if the premiums are attractive, or as an option if you don’t qualify for an individual plan.
Individual short-term disability policies aren’t as common or as critical, so short-term coverage through your employer can be a nice employee benefit to have and may cover instances such as maternity leave.
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Long-Term Care Insurance Through Work
Long-term care insurance covers costs such as assisted living, nursing home, and in-home care for long-term needs. Long-term care insurance isn’t as common as the other insurances above, but is an option offered by some employers.
This type of insurance is becoming increasingly complicated and less advantageous, with capped payouts and strict qualification requirements making it harder to get full coverage for the resources needed. Moreover, most doctors are able to save and invest throughout their career, allowing them to self-insure for these types of expenses by the time they reach the typical coverage age (50-65). Investing the money you would’ve spent on these premiums will often yield a greater amount of money, without the restrictions on use seen in these plans. That said, not all plans are created equal, and it can be worth exploring options and seeing how the price of your group plan through work compares to what you can get elsewhere.
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Identity Theft Protection Through Work
Identity theft protection is increasingly offered by employers, though it isn’t a standard benefit offered. This coverage may be offered by the employer as a paid benefit, a subsidized benefit, or voluntary for enrollment, which is where you need to cover the premiums yourself.
Most plans include:
Credit monitoring and alerts
Dark web monitoring
Identity theft insurance (offers reimbursement)
Fraud resolution support
If this is a free or low-cost benefit through your employer, it can be worth taking, as dealing with identity theft can take a lot of time and emotional energy.
If the coverage isn’t subsidized, you’ll want to balance the expense versus what it covers. Regardless of whether you get this type of coverage or decide to handle identity protection yourself, you should consider freezing your credit to help protect against threats.
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Conclusion
Insurance is a critical component of financial planning for doctors, but workplace insurance options aren’t always the best coverage to keep you protected. Some types of insurance, such as health, vision, and dental, are usually subsidized and are generally worth getting through your employer. Others, such as life and disability, can be nice additional perks if they offer competitive premiums, but doctors should typically view this as supplemental coverage layered on top of an individual policy. Less common options, such as long-term care and identity theft protection, should be evaluated by comparing premiums versus the benefits.
Related Resources for Physicians
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