As a physician, life insurance is a crucial part of your financial safety net. But many physicians may not have the coverage they really need for proper protection. True, they likely carry some life insurance. But upon closer examination, the coverage may not be adequate in amount, or in other ways. Let’s discuss some situations that may leave a physician without proper insurance protection, and how TMA Insurance Trust can help.
If You Are an Employed Physician:
Many hospitals and large medical practices offer group life insurance as an employee benefit. Gaining coverage is simple; all you have to do is sign up (and sometimes you are automatically enrolled!) But there are a few reasons that, if you have group life insurance coverage, you may want to consider obtaining your own policy:
- In the likely event that you will one day leave your current position to another, you may be able to convert your group policy to individual life insurance. However, by that time, your premiums may increase significantly, or you may already have a medical condition that prevents you from being approved for coverage at all.
- You may be able to purchase additional coverage through your employer, but there may be limits on the amount available to you - and you may not be able to buy as much coverage as you need through your work.
- When you buy life insurance through work, you don’t control which insurer your employer does business with. You won’t find the types of coverage and policy options that you might find if you were to shop around.
For all of these reasons, it’s a great idea to look into a life insurance policy of your own that is portable, meets your needs long-term, and gives you the options that are right for your situation. By contacting a TMA Insurance Trust advisor, you can confirm that the group coverage you have provides enough financial protection for your family given your individual situation, or that you may benefit from having your own coverage.
If You are a Small Practice Owner:
If you own your own small practice, life insurance can fit your needs in several ways. It can provide insurance protection for your family in the event that you pass away, but it can also be an important part of sustaining your small practice if something happens to you. One way to put in a proper succession plan for your practice is to create a buy-sell agreement, requiring that the interests of an owner who dies must be sold to the remaining co-owners (or another designated purchaser). A life insurance policy can cover the costs of such a transaction, guaranteeing that the funds will be available when they are needed. A discussion with a qualified insurance advisor can help you work out the necessary details.
If There Have Been Changes in Your Life Recently:
Life insurance is not a “once and done” type of situation. As your life situation changes, so will your needs for insurance protection. So think about the recent past: have you gotten married, had a child, purchased a home, started a business, taken on more debt? These are just some reasons that you would want to look again at your coverage to see if your insurance benefits will take care of the ones who need it.
If You Have Unpaid Education Loans:
Even if you are young and you don’t have children, life insurance can be helpful. Many young physicians have a co-signer on their private or state-issued education loans. What will happen if they die and their co-signer is left to repay the loan? Would their co-signer’s life savings and retirement plans be at risk if they had to suddenly repay their medical school debt? This issue is so important that many lenders will require a new borrower to obtain life insurance before the loan is approved.
If You Want Simple, Immediate Insurance Protection:
For some situations, life insurance may seem complicated. But term life insurance isn’t that way. Term life insurance is considered straightforward protection - there are no bells and whistles, no increased features that also increase the cost. That means that if you’re looking for the most affordable coverage, term life insurance may be exactly what you need.
Term life insurance also offers immediate coverage. This is an advantage for many situations, because there’s no need to wait for the coverage to be in place. Many physicians rightly plan for the future, and an investment or savings strategy can offer a layer of protection for their loved ones ... but these take time to build. Once you are approved for a term life insurance policy, you have the confidence of knowing that your insurance protection is in place from day one.
If You Want Coverage Quickly:
TMA Insurance Trust now offers a faster option than ever before to apply for life insurance. If you are a TMA member under age 45, you can click the "Life Express" option below to apply for up to $500,000 of coverage with an instant decision.
If you are a TMA member under age 55, you can apply online for up to $1 million of coverage with simplified underwriting by clicking the "$1 Million Life" option below.
Texas physicians can also apply for up to $2 million or more of life insurance coverage working directly with a friendly, knowledgeable TMA Insurance Trust advisor. Your advisor can provide information and quotes for both term life and permanent life insurance. Fill out the form at the end of the article and an advisor will contact you, or call 1-800-880-8181.
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.