As a physician, you know that you have many people counting on you. You support your family and friends, your patients, important causes, and you plan for your own future needs. This awareness leads most physicians to secure a long-term disability insurance policy early in their career. Yet some physicians may underestimate how much disability insurance they need, they may be tempted to save money by buying less coverage, or they may not have revisited their disability insurance needs for many years.
If you were to suffer the misfortune of a disability, are you certain that you have counted the hidden costs of your illness or injury? Please consider the following five ways a disability could affect you that you may not have taken into consideration. These forgotten repercussions of disability will help you to evaluate your present needs.
1. Higher and ongoing medical costs. Healthcare expenses can jump significantly during a serious illness or injury. Long term disability insurance replaces your lost income and provides funds to help cover your health insurance premiums and increased out-of-pocket expenses such as co-pays and deductibles.
2. Inability to contribute toward current living expenses. Many physicians are the primary wage earner in their households. Without your income, your family may be hard-pressed to pay the mortgage, property taxes, and other major expenses. Disability insurance reduces financial anxiety and allows you to focus your energy on getting well.
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3. Retirement savings at risk. If you become disabled, your savings and investments can become disabled too. Having disability insurance prevents you from having to tap into retirement savings to cover the expenses related to a prolonged disability. And some companies offer Retirement Protection riders. Call to discuss this option with our advisors.
4. Lost income from loved ones and other family while supporting you. If your spouse takes off work to be a caregiver, it reduces their ability to save for retirement, and further reduces your family’s ability to cover living expenses. With sufficient disability coverage, you will be able to cover living expenses, and you may be able to continue to save.
5. Loss of revenue for your practice. Without the ability to see your patients, you can’t earn income. If you are a partner or practice owner, you are probably still expected to cover business overhead. A business overhead expense policy is like disability insurance for your practice. It will help pay employee salaries and practice expenses, offering security to everyone involved: your staff, your patients, your partners, and yourself.
Without disability coverage to replace a significant portion of your lost income, you would have to pull from existing savings or investments, rely on family or friends, incur sizeable debt, or consider other means to provide for your needs. Don’t underestimate the forgotten costs of disability.
TMA Insurance Trust was created by the Texas Medical Association to look out for your best interests so you can receive quality, unbiased assistance. Our advisors work for you, not for any insurance company. Whether you are looking into disability insurance or business overhead insurance, there is no incentive to talk you into more coverage than you need. We are here to help - so call us today for a free, no-obligation consultation from a trusted, experienced advisor.
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.