Four Insurance Tips Every Doctor Should Know

The past couple of years have left many of us with anxiety, fear and doubt. These trying times have helped many realize the importance of being prepared for unforeseen circumstances.

Insurance is one of the most concrete ways to help yourself and your family be ready, no matter what comes your way. But we understand that insurance is not always simple.

At Panacea, our goal is to simplify insurance, so you can understand what you need without the headache of wading through the fine print. Here are 4 tips for insurance -readiness in 2022.

Protect Your Professional Abilities with Disability Insurance

Disability insurance is arguably one of the most, if not the most, important piece to a doctor’s financial protection. Whether in residency or a practicing doctor, disability insurance provides protection for your most important asset: your ability to earn an income. And it provides this protection for your present and future self.

To understand the importance of this asset, ask yourself: If I were to become disabled and lose my ability to practice as a doctor, how would my life have to change from a financial perspective?

If You Have Disability Insurance, Make Sure it’s Up to Date

If you already have disability insurance, it’s time to review your policy to ensure you are covered in every area needed. There are many reasons your policy may need an update. If you are practicing but purchased your policy in residency, you changed from a hospital-based practice to private practice (or vice versa), or you have had your policy for more then ten years, you should consider an update.

A few things to consider when reviewing your Disability Insurance:

• Benefit amount – Does it align with your current income level?
• Your policy’s occupation definition – Every carrier’s definition is different, and they are not all built for doctors.
• Portability – If you have a group-sponsored plan, can you take it with you if you leave?     
• Mental/Nervous Limitation – Most carriers do not treat mental or nervous issues the same as physical injuries, only covering these conditions for 12-24 months. Consider finding a policy that does not limit these issues in this way.

Protect Your Family with Life Insurance

Life insurance is essential to ensuring your family is protected. While disability gives you peace of mind while living, life insurance gives you and your family peace of mind should the worst happen.

There are many options for life insurance and the strategies to build it, but the main priority is to purchase a policy and build on it as you and your family grow.

Keep Business and Personal Insurance Separate

Don’t mingle your business insurance with your personal insurance. If you own your own practice or are part of a group that includes insurance, be sure that you have separate life and disability options for your family.

The reason for this is simple. If you buy into a practice for $1 million and only have $1 million in life insurance collateralized to the debt when you pass away, that $1 million pays your debt first. If no other life insurance, your family is left with nothing.

This same concept applies to disability insurance coverage. Even if you have disability insurance but own a practice then become disabled, that money keeps the practice running first. The benefit really shrinks quickly for your family after that. We can help you separate the two to ensure your family is covered.