What would you do, if you could no longer practice medicine?
Aside from the emotional distress and physical complications of an illness or injury that leaves you unable to work, there are serious financial consequences. How would you pay living expenses and meet financial obligations, fund your retirement, or pay for your children’s education?
Like many physicians, you may already have disability insurance that will replace part of your income, if you can’t work. But in the case of a career-ending disability, the percentage of income you’ll collect may not be enough to cover your current expenses and meet your long-term needs.
Many physicians have found a solution with lump sum disability insurance. Most plans include a wide range of coverage options, so coverage can be used to provide surplus coverage … or as our main source of protection. You can choose just the amount you need to meet short-term needs, such as outstanding loan balances or a child’s education costs … or you can opt for a larger lump sum that can be used to support your overall financial plan.
Consider the income gains you’d lose, if you stopped working now.
While monthly income plans can go a long way toward helping you get by financially, they don’t take into account the income gains you’d lose, if you were no longer able to work. The benefit you collect is based on your income at the time your benefits start.
A lump sum plan can be used to offset the loss of future income gains. It can also give you the ability to invest for the future … and preserve your retirement savings. Something else to consider is that this income is paid to you tax-free, as long as premiums are paid out of your own pocket.
“Own Occupation” protection — an important distinction.
When choosing a lump sum disability insurance plan, it’s important to understand how that plan defines disability … and to choose insurance that uses a specialty “own occupation” definition. That means you’ll collect benefits, if you can’t return to the same work you did before an injury or illness ended your career. That’s an important distinction, because plans that don’t use this definition won’t pay full benefits, if you have the ability to work in another field of medicine.
A limited time offer for AAFP members.
One of the biggest risks physicians face is an injury or illness that ends their careers and their ability to earn a living. AAFP recognizes this and has partnered with Lloyd’s of London to guarantee members up to 10 times their annual incomes, up to $2 million, in Lump Sum Disability Insurance Protection. Before the Open Enrollment Period ends on July 27, all members are guaranteed acceptance with no medical underwriting or financial information. Learn more and enroll today.
