Iowa Medical Partners
Stay Connected!
  • Home
    • Who We Are
    • What We Do
  • Activities
    • Welcome Brunch
    • Family Welcome Picnic
    • Goodbye Party
    • Date Night
    • Book Club
    • Children's Activities
    • Entertainment Club
    • Play Group
    • S.pouses O.ut S.ocializing
    • Philanthropy
    • Meal Trains
  • Membership
    • What is included in my membership?
    • Join Today!
    • Officers
  • Blog
  • Housing
    • Post Properties
    • SALE Listings
    • RENT Listings
    • Need a Realtor?
  • IMP Sponsors
    • GreenState Credit Union
    • Tundi Brady with Urban Acres
    • Nathan Brooks with 25 Financial
    • Gold Sponsors: Nanci Kohl with State Farm
    • Interested in Becoming a Sponsor?
  • Resources
  • Contact

Manage your Risks - An insurance overview for Physician Families

9/10/2019

0 Comments

 
I like the term “Risk Management” much better than the term “Insurance” don’t you? The word insurance comes with some serious baggage… and for good reason. The reason is two fold:
Picture
  1. ​​People generally don’t like paying for something that doesn’t benefit them “in the now”.​​

  2. Insurance is a product. Products get pushed to people because the sellers get paid, and because of this people wonder if the recommendation is actually in their best interest or in the interest of the salesman!

Does this mean insurance is bad? Yes and no. As with any tool, it depends on how it’s used. Does an orthopedist recommend a knee replacement when in reality simply setting a fracture and casting will do? You see where I’m going with this? It’s not the tool, it’s how you use it!
When used correctly, insurance is an extremely cost effective way to manage your risks. The natural question then is: “Okay, Bobby. what are my risks?”.  In a nut-shell, your risks are likely:
  1. Someone sues you: Liability insurance is the tool here.
  2. You die (or your partner dies): Life insurance is the tool here.
  3. You become disabled: Disability insurance is the tool here.
So, do you need it? Answer the following question: “If any of the above happens to me, am I okay financially?”
LIABILITY INSURANCE: As a physician family, the likelihood of getting sued is higher. Why? Because your household makes a lot of money (or will someday)! Yes, you may not have much now, but if they think they have a case, they can garnish your future wages! The fix is fairly simple. Go get umbrella coverage on your home and auto policies. 
Picture
LIFE INSURANCE: As a physician family, you very likely have a negative net worth and you might be in a heap of trouble if something happens to your spouse! Some student loans are often forgiven, but not all. Additionally, you’ve put quite a few years of your life “on hold” in hopes of a potentially higher household income. If this income disappears, you’ve got a lot of catching up to do. Saving for retirement, paying off your mortgage, paying for childcare should the primary caregiver pass away….All of these things are expensive and add up quickly. Term life insurance from a financially strong insurer can be a VERY cost effective way to mitigate the risk of death. The younger and healthier you are, the cheaper these policy premiums are. 

DISABILITY INSURANCE: In the same way that the death of a spouse would be financially devastating, so too would the disability of the primary breadwinner. Whether it’s repaying student loans, saving for retirement, paying off mortgage, or putting kids through college...all of these things require income. But not just any income, they require a PHYSICIANS INCOME! This is where “own occupation” long term disability insurance  (LTDI) comes into play. 
Without going too deep into the weeds, the vast majority of LTDI policies do NOT protect your specific specialty. Only a handful of carriers will pay you a disability benefit EVEN if you re-train specialties or end up flipping burgers at McDonald's. Imagine this scenario: You train to be an Orthopedic Surgeon and lose function in one of your extremities and can no longer perform surgery. You take a much lower paying faculty position teaching surgery at the university. Would you still want the income that should go with surgery? Of course you would! The disability you incurred forced lower income and reduced your debt repayment, retirement savings, and a host of other things. 
In closing, paying for insurance is likely the last thing a low paid resident or fellow wants to do. However, take advantage of your young age, good health and resident discounts! A few thousand dollars over the next few years is a small price to pay to protect the massive investment you and your family have made in pursuing the life of a physician family.
While I don’t sell insurance, please reach out to me (info@partnerwealth.com) and I’ll connect you to a local independent agent who will put your interests ahead of their own! ​
 Special thanks to our sponsor Bobby Scott, CFP® for writing this post! 
0 Comments



Leave a Reply.

    Enter your email address:

    Delivered by FeedBurner

    RSS Feed

    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture

    Archives

    March 2022
    October 2021
    August 2021
    June 2021
    April 2021
    March 2021
    October 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    April 2019
    March 2019
    January 2019
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    December 2017
    September 2017
    July 2017
    June 2017
    December 2016
    November 2016
    October 2016
    August 2016
    July 2016
    May 2016
    April 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    August 2013
    July 2013
    March 2013
    February 2013

    Categories

    All
    Children's Activities
    Entertainment Club
    Entertainment Club
    Events
    Giveaways
    Reviews
    S.O.S.
    Trips
    Upcoming Events

Copyright Iowa Medical Partners 2013.