Disability and life insurance are two of the most important financial securities you can invest in.
With so many options, getting disability or life insurance can be scary and stressful, which can lead to many mistakes. In this post, we are going to go over some common mistakes physicians make when getting disability or life insurance, and ways to avoid those!
DISABILITY INSURANCE MISTAKES
1. Relying on an Employer Policy
One of the most common ways physicians get disability insurance is through their employer. While employer policies provide basic coverage, there are many issues with relying only on this policy for full coverage.
An employer or group policy is not as comprehensive as a private policy from one of the own-occupation “Big Six.” It also has the following downsides:
- Taxable benefits, so if and when you collect your benefit from your employer, you have to pay income taxes on it.
- Not own-occupation, so if you are doing anything else, you will not get your full benefit.
- Non-portable, so if you leave that employer, you can not take the policy with you because the employer owns the policy.
- The employer owns the policy, so if they want to change, cancel, or modify it at any time they have the right to do so.
A good way to avoid having the problems listed above, most physicians get disability insurance is through private companies.
There are many options and often doctors often choose the wrong policy because of a lack of time to research or misinformation.
At Pattern, we are focused on education so that you have the knowledge and resources to make the best choice for you and your situation.
2. Not Having an Own-Occupation Policy
One of the most important things to confirm, before you decide on your policy, is if it is your own occupation. If you are a doctor and you are looking to protect your specific specialty and the duties you do on a daily or weekly basis, you have to have own-occupation coverage.
Essentially an own-occupation policy says that if you get disabled and you can’t perform your specific duties, but you can do some other job, they will continue paying you the full benefit.
If you don’t have that kind of coverage but are able to do any kind of job, such as working at a library, teaching, or anything else, you will find your benefit decreased. They may even stop paying you altogether.
There are some companies that claim to have own-occupation coverage that doesn’t, and the big sticking point is if you can do something else!
One thing that you might have heard of before is the “Big Six” companies or the six companies that have own-occupation coverage. Those companies are Ameritas, Standard, Guardian, Principal, Mass Mutual, and Ohio National.
In order to avoid this, it is important when looking into policies through private companies, be sure that you are getting an own-occupation policy.
LIFE INSURANCE MISTAKES
1. Not Looking Into All Your Options
One big mistake physicians make when purchasing life insurance, is not looking into each option. When it comes to life insurance there are 6 main types.
- Term Life
- Permanent Cash Value
- Whole Life
- Universal Life
- Variable Life
- Index Universal Life
Each type has different benefits which makes each policy not ideal for everyone. Without looking at each of your options, or understanding which would be best for you, you may end up wasting your money on a policy that will not work best for you.
This is why at Pattern, we are focused on education so that you have the knowledge and resources to make the best choice for you and your situation.
2. Getting the Wrong Amount of Coverage
Another mistake physicians make when it comes to life insurance, is getting too much or too little amount of coverage.
Choosing the right amount of coverage is tricky with life insurance, in order to choose the right policy amount there are a lot of things to pay attention to.
When purchasing life insurance through Pattern, we ask the most important questions in order to get you the right amount of benefit with accurate quotes right away.
Getting insurance doesn’t have to be complicated! At Pattern, we focus on making sure you understand your options and have the right information to make the best choice and secure your financial future successfully.
If you are interested in getting disability insurance don’t hesitate to contact us. We are here to help you and we make sure this process is easy and simple. If you have any questions or are ready to get your own disability or life insurance policy started, reach out to Pattern at www.patternlife.com zebras to get started.