One hot topic that remains top of mind for Texas physicians is insurance coverage. From health, life, liability, professional liability, disability, etc., questions always arise, ranging from, “What types do you have?” to “How much of it should I purchase?”
While the early stages of 2015 are still upon us, there is no better time than the present to review current insurance policies. This can help you determine if there is adequate coverage for your current life stage and any emergencies that may arise in the future. An insurance policy’s function is to be able to shift financial risk to the insurance company, should an emergency or setback unexpectedly occur, helping you preserve financial stability.
While some Texas physicians may unfortunately load up on unnecessary policies thanks to a savvy sales pitch, others may try to cut costs altogether, feeling that insurance premiums cut into their profit margins. A healthy strategy sits somewhere in the middle of these two extremes. Let us take a quick look at a variety of insurance products you should consider in 2015.
Insurance Checklist for Texas Physicians in 2015
Life Insurance – The goal of life insurance is to replace a portion of income stream that is not replaceable by immediate assets. While you may hear the old strategy of buying a policy worth up to ten times your average pay, this is too broad a statement in our day and age. As a Texas physician with distinct insurance needs, the proper life insurance policy will secure your family’s standard of living, in addition to paying mortgages, debts, college tuitions and more. An experienced advisor knowledgeable about the needs of physicians will take all of this into account and discuss your Term vs. Permanent life insurance options.
Disability Income Insurance – Though often overlooked, disability insurance should be considered by all Texas physicians. It is commonly designed to replace up to 60 percent of your gross income, potentially tax free, in the event that a disability prevents you from completing the material and substantial duties of your profession. Take into account that statistically you are far more likely to be injured or become ill, than to die early, and you can see why long-term disability insurance should not be brushed off.
Something to keep in mind with disability insurance: even if you have a group disability policy, having your own individual policy that moves with you from employer to employer should be considered.
Health Insurance – As a physician, you take care of so many others. By securing a top-quality health insurance plan, you can rest assured that your health is also well taken care of and in good hands. Whether you are seeking a plan with a high deductible and lower monthly premiums, or vice versa, a physician-committed insurance advisor can explain the array of quality medical policies available to you depending on your current stage of life.
Long-term Care Insurance – Long-term care insurance is designed to help you if you need assistance with the activities of daily living. It can financially cover the expenses of in-home care or a nursing home, which can average more than $75,000 a year, and provide you with assistance for the activities of daily living: eating, bathing, dressing, toileting, transferring and continence. With self-employed physicians and depending on your age, some long-term care premiums may be tax-deductible.
Office Overhead Expense Insurance – This type of insurance comes into play when financial help is needed when you have become disabled due to accident or illness. Office overhead coverage can help you pay office expenses, salaries and wages, rent, utilities, business insurance premiums and more. This is an ideal product to help protect other physicians and employees from the effects of one partner’s disability or injury.
In addition to the five most common types covered here, there are even more insurance products that can help protect Texas physicians. These include accidental death & dismemberment (AD&D), medical evacuation, travel, supplemental hospital indemnity and dental insurance.
To learn more about physician-specific insurance products and the types and amounts of coverage you may need, feel free to reach out to us. We’ll partner you with an advisor who can answer your questions and provide any additional information for you.