Big events like a marriage are the perfect time to start thinking about protecting what you have, including your income and health. As a physician, you have a lot to lose. Whether you get married when you’re 25 or 45, tying the knot is a good time to make sure you have the right insurance policies in place.
Health insurance
Of course, it’s important to have health insurance. But it’s also important to have the right insurance for your needs. As you merge your life with that of your significant other, start by figuring out whose health insurance policy is the best fit for you as a couple.
If you both have your own policies through an employer, consider the following:
- Which plan has the best co-insurance options? Co-insurance is the percentage of costs you pay after you meet your deductible.
- Look beyond the premium. While one policy may have a lower premium, it may exclude important coverage you may need, or have higher co-insurance.
- If you’re planning to have children, find out which plan has the best maternity and prenatal coverage.
- Which plan offers better coverage of mental health care, prescription drugs, and dental care?
- In some cases, it might make more sense for each of you to keep your own insurance policy.
If neither you nor your spouse has insurance through an employer, you may apply for an individual policy. Individual health insurance policies can be pricey and coverage confusing. So it may be wise to consult an insurance advisor who can help you wade through the various policy options and navigate the application process.
Life insurance
If one of you is dependent on the other for financial security, now is the time to buy a life insurance policy to protect the dependent spouse.
- If you purchase life insurance when you’re young and in good health, the premiums may be more affordable.
- Term life insurance is often cheaper than a whole-life plan. You can purchase term life insurance in 1, 5, 10, 15, 20, or 30-year increments.
Often, people buy term life insurance when they get married or have children, and keep it until their kids are grown. However, you may want to convert your term life policy into a permanent policy once the term is over, if your plan allows for that and it makes sense for you financially.
Long-term disability insurance (LTD)
Disabilities are more common than you might think. In fact, 3 in 10 workers entering the work force today will become disabled before retiring.1 If you become disabled and are unable to work for a long period of time, LTD insurance can help you to pay your mortgage, interest on school loans, and everyday expenses.
- Many physicians purchase LTD insurance while they are still in residency, which is wise, because it may be easier to meet the health requirements as a younger person.
- For physicians, it’s important to purchase a policy that has a feature called “own occupation.” A policy with an own occupation definition of disability will pay you the benefit if you’re unable to practice medicine, even if you can do other kinds of work.
- While your employer may provide LTD insurance, you may want to purchase an additional policy to make sure you’re adequately covered.
1. Council for Disability Awareness website, Disability Statistics page at http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp, updated 2009. Accessed April 6, 2010.
