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Pattern, a proud sponsor of this blog, has been providing an educational series about Disability Insurance for physicians:
- 5 Things Physicians Need to Know About Disability Insurance
- The Different Types of Disability Insurance
For those still on the fence about getting disability insurance, hopefully the following article stresses why this is something that really needs to be done now rather than something that can be put off for later.
So without further ado, I will hand the reins over to Pattern.
You may have been told that you need to get disability insurance from your employer or financial advisors but you may not understand why you need it, or what makes it so important!
In this blog post, we are going to go through the importance of disability insurance and why you should have this type of insurance.
Disability insurance is one of the key financial securities, yet it is often overlooked by physicians.
So why is disability insurance important to you?
Think of it this way: You have spent thousands of dollars and hours investing in medical school and your training.
After all is said and done, your career and income are dependent on you!
Disability insurance is a type of insurance that provides income in the case that you are unable to work due to an injury or illness.
A disability ranging from a long-term illness to a disabling accident could take your career and your financial stability.
After you’ve invested an enormous amount of time, education costs, and postponed income, your time and education are your most valuable assets.
In order to protect yourself and those who depend on you, it is important to have disability insurance to cover the loss of income you would face in these unfortunate circumstances.
WHY DO DOCTORS NEED DISABILITY INSURANCE?
Your career and your income depend on your ability to work and perform your required duties.
Becoming a doctor is the ultimate personal investment—your most valuable asset is YOU.
Anything from a back injury, vision loss, or a hand injury will threaten those assets that you built through years of difficult work in training.
Physicians have a 30% chance of missing out on income because of unexpected sickness or injury in their careers!
You may also have student loan debt, which can’t be discharged if you are injured and can’t work—even if you declare bankruptcy.
Disability insurance protects you against financial hardship if injury or illness prevents you from working.
If you were suddenly unable to perform these duties and you didn’t have disability insurance, your thousands of dollars and hours spent on your career would be a loss.
WHAT ARE THE BENEFITS OF DISABILITY INSURANCE?
The main and most crucial benefit of disability insurance is the replacement of income in the event that you are not able to work.
If you become disabled, your disability insurance will provide monthly paychecks that will replace your income to ensure that you are protected financially.
Disability insurance will replace your paychecks and allow you to pay your car payment, student loans, mortgage, etc.
This could save you from not only the grief of the loss of your career but also the stress of having to change your lifestyle due to the loss of your income.
There is a lot more that goes into a disability insurance policy that makes it more personal to you and your financial plan.
If you are interested in learning more about disability insurance and your personalized options, check out our comprehensive disability insurance guide here!
Although it can be confusing, disability insurance is a vital part of your financial security and your long term financial plan.
In order to have peace of mind that you got the right policy and the right amount of coverage to protect your loved ones, get started with your disability insurance policy here.
If you are in search of financial help, please consider enlisting the service of any of the sponsors of this blog who I feel are part of the “good guys and gals of finance.”
Even a steadfast DIY’er can sometimes gain benefit from the occasional professional input.
NOTE: The website XRAYVSN contains affiliate links and thus receives compensation whenever a purchase through these links is made (at no further cost to you). As an Amazon Associate I earn from qualifying purchases. Although these proceeds help keep this site going they do not have any bearing on the reviews of any products I endorse which are from my own honest experiences. Thank you- XRAYVSN
Great post. I think disability insurance is more important than life insurance in many cases. When I was younger, I had so many insurance policies. As I get older and financially secure, I am slowly getting rid of the insurances. Have a great weekend XRV.
Thanks for checking in VP. I too have gotten rid of all my disability insurance policies except for the group practice one (which I have to partake in with anyway). I agree how you prioritize disability insurance as well, especially if you have others relying on you.
Have a great weekend as well and hope you and your family stay safe.
Any reason why you do not want/need your own own-occupation policy? Does your group plan cover you enough?!
PGY1 here and not sure whether to lock in a good rate now or wait till PGY5 (rads) or as an attending
Great question Nate. I personally had individual disability insurance when I first graduated residency (I didn’t do much research and picked the one offered by AMA). I recently canceled that policy once I achieved financial independence as the rates had been slowly creeping up (I believe initially $80 month and most recent ones were approaching $150/mo). The group policy is mandatory to participate in work so I still have some protection. But when you start out early in your career I really do suggest getting a own-occupation policy. Most people feel you can lock in lower rates doing it as… Read more »