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Diability and life insurance
- Thread starter docny
- Start date
Any advice?
If you have a family to feed, get a term life policy that covers the time until your kids are old enough to go out and catch their own fish.
Disability is a good idea. Make sure your disability policy is 'specialty specific'. Disability insurers are known to weasel out of their obligations by telling you that you could still work as a 'psychiatrist' even if your training was as a 'anterior lobe pituitary transsphenoidal neurosurgeon'. Also, if you do anything procedural, loss of 1 hand (dominant nondominant) equals 100% disability. Not all insurers offer these options.
What to watch out for?
Unscrupulous salespeople (financial advisors) who try to talk you into a 'whole life' policy.
They know that physicians are easy prey if you dangle 'asset protection' and 'tax benefit' in front of them. In reality, the main beneficiary of a 'whole life' policy is the scoundrel who sells it to you. As the overall premium payments for those policies are tremendous (due to their multiyear committments), the salesperson gets a huge commission up front (which goes out of the money available for you to build capital).
Hadron - thanks you for your great input!
I was thinking of term Life insurance too. Is that accidental death only? What are the usual premium rates for a 1M policy with family and are there good websites for guidance?
Any suggestions on which insurance company for disability insurance? Which will agree to speciality specific disability. I get something in the mail every now and then from AMA and with family 1M coverage is for about 450 6-monthly. is that the usual? Do they change the premiums down the road or the remain fixed.
I was thinking of term Life insurance too. Is that accidental death only? What are the usual premium rates for a 1M policy with family and are there good websites for guidance?
Any suggestions on which insurance company for disability insurance? Which will agree to speciality specific disability. I get something in the mail every now and then from AMA and with family 1M coverage is for about 450 6-monthly. is that the usual? Do they change the premiums down the road or the remain fixed.
It was a while ago that I looked into this. One of the companies that seems to offer good physician specific policies was the Berkshire Life ins. co.
Life insurance is a bounty on your head, to be paid if someone delivers your body to the insurance co. They don't care how you die (except that they won't pay benefits to the person convicted of killing you).
In the end I decided that my best life insurance is a wife with the same earnings potential. If I keel over tomorrow, she would be able to maintain our distinctly middle-class lifestyle based on her own income. Disability is a different story and I'll have to look into that again.
Life insurance is a bounty on your head, to be paid if someone delivers your body to the insurance co. They don't care how you die (except that they won't pay benefits to the person convicted of killing you).
In the end I decided that my best life insurance is a wife with the same earnings potential. If I keel over tomorrow, she would be able to maintain our distinctly middle-class lifestyle based on her own income. Disability is a different story and I'll have to look into that again.
The insurance(s) offered by AMA, ACP (and similar other professional organizations) are technically known as 'Group Policy' and hence likely to cheaper than individual policy you search on your own. However in this era of internet marketing, you can get cheap policy on individual basis too.
The same organizations offer Disability insurance too. Accidental death policies are different from classical term life policies and can be bought again from one of these organizations or individually.
Needless to say - you have to be a member of the organization offer various kinds of insurance.
The same organizations offer Disability insurance too. Accidental death policies are different from classical term life policies and can be bought again from one of these organizations or individually.
Needless to say - you have to be a member of the organization offer various kinds of insurance.
I don't see the point of accidental death only policies. You don't want to insure a manner of death, you want to insure your loss of income generating capacity. There is no difference whether you got run-over by a dump-truck or whether AML takes you out in a hurry, your kids need to get fed either way.
hurricanemd
Registered Users (C)
hi have recently got long term disability policy from UNUM provident, i tried hard to get a lower premium but finally had to take one in which i am paying $335/month , for same occupation ( 90 days elimination ) , for $7500/month .
1.can others give input , if its good or too expensive ( i did check around , but heard similar rates, if premuims were less , the coverage was less)
2. they also have this crazy residual disability thing , in which they try to see the previous years income and then give benefits, sometimes , i am not sure ,whether its really good , or one should invest $335 /month in something, but atleast its tax deductable.
1.can others give input , if its good or too expensive ( i did check around , but heard similar rates, if premuims were less , the coverage was less)
2. they also have this crazy residual disability thing , in which they try to see the previous years income and then give benefits, sometimes , i am not sure ,whether its really good , or one should invest $335 /month in something, but atleast its tax deductable.