You have invested heavily in your future; putting forth effort, time, and significant expense to get where you are today. As you near the conclusion of your medical residency, you expect a successful career of personal satisfaction and accomplishment. Still, no one can say with certainty what the future holds. If the unexpected should happen, proper insurance coverage will help you meet the unknown head on. What type on insurance should you carry as a resident or fellow? For those who aren’t sure where to start, we have created a package of the most essential insurance products for physicians who are starting out in their careers.
The Essentials Package: Protect Your Income, your Family, and Yourself
Still in Residency?
Protect Your Income with Disability Insurance – As a physician starting out in your career, you have clear financial goals. If a serious illness or injury prevents you from working, your benefit can help replace your lost income so you can continue to pay for your monthly living expenses, as well as your student loan payments. Sixty percent of your salary should be insured since this amount will roughly replace your salary net of taxes and career-related expenses.
Protect Your Family with Life Insurance – Why does term life insurance make sense for new physicians? It is straightforward protection without any added features or savings components which increase the cost of your premium; therefore, it is an economical choice. Young physicians who are married and/or have children should especially have life insurance because:
• your beneficiary will have immediate protection from the time your policy is issued.
• based on the term you select, your coverage can last for the time it takes to raise a family, pay off education loans, and establish a solid financial footing for your family.
• you can get a sizable death benefit for a reasonable cost.
When you are young and healthy, premiums are at their lowest, so the time to act is now.
Leaving Residency in the Near Future?
Protect Yourself with Health Insurance – As an employee at a hospital or medical center, you likely have health insurance through your employer. When you do leave residency, you may lose access to that coverage. If you will be staying in Texas but not moving immediately into a position with benefits, TMA Insurance Trust can help you secure a health insurance policy of your own.
As a resident, you likely already have health, life and disability insurance as paid benefits from your current employer. So why look into coverage now? You know that your insurance coverage will end along with your employment at that facility. And over the course of a career no one knows for sure if they will continue to work in an employee setting or be self-employed as a practice owner or partner. Regardless of your employment situation, carrying your own insurance policy will provide protection regardless how your circumstances change. Consider some possibilities that may leave you with inadequate coverage unexpectedly:
• If there is a gap of time after your residency and before your next position begins, you may be without health, life, and disability insurance.
• The amount of your employer-provided disability benefits may not be enough to provide the proper coverage for your family.
• If your employer pays for your disability coverage, your benefits may be taxed as income, which may leave your family with less income than you planned during a very critical time.
At TMA Insurance Trust, we believe in protecting the future of every physician in our beloved state of Texas. As you travel the road of life, you know that there will be bumps in the road - but you don’t need to let these drive you off course. It is best for new physicians to secure this essential protection now. With decades of experience, our trusted advisors can help you make the right choices so your future stays bright and sure. Contact us today.
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.
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