For Young Physicians: Protecting Your Future

By Kate Sellers
Charles J. Sellers & Co. Insurance
www.sellersinsurance.com

If you’re an early career physician, this article is for you!  If you’re further along in your career, and have a younger physician in your workplace or in your family, this is helpful  information to share with them.

As young physicians embark on their careers, there are lots of new opportunities—and new responsibilities. One of the most important responsibilities is making sure that you are properly insured. From safeguarding your income to protecting your family and assets, having the right insurance coverage is critical for your long-term financial security.

Disability Insurance: Protecting Your Ability to Earn an Income

For young physicians, disability insurance is one of the most important insurance coverages to secure. Your ability to earn an income is your most valuable financial asset, especially in the early years of your career. You’ve invested so much hard work, time, and money to get to the point that you have this asset, and disability insurance helps you protect that investment.

Disability insurance replaces a portion of your income if you become unable to work due to a disabling condition. While group disability insurance is often available through employers, these policies may not offer adequate coverage for your specific needs. We encourage young physicians to obtain your own personal coverage that you can control and take with you wherever you practice.  Because you typically need to medically qualify, it's best to apply for this coverage when you’re young and healthy. 

Disability insurance can be customized with riders.  There are two we strongly recommend for young physicians:

1. Cost-of-Living Adjustment (COLA) Rider

With a Cost-of-Living Adjustment (COLA) rider, if you have a long period of disability, your benefit will be increased over the years to help keep pace with inflation. This is especially important for young physicians, who have decades of their working lives ahead of them. Without a COLA rider, the purchasing power of your disability benefits could erode significantly over the years.

2. Guaranteed Purchase/Future Increase Option Rider

As a young physician, your income is likely to increase substantially over time. A Guaranteed Purchase or Future Increase Option Rider allows you to increase your disability insurance coverage in the future without needing to undergo additional medical underwriting. It’s important that your disability coverage grow along with your income. With this  rider, you can ensure that your disability benefits reflect your earnings potential without worrying about future health changes affecting your insurability.

Onondaga County Medical Society endorses a disability insurance program for its members, offered by our agency.  Please reach out to us if you’d like more information.

Life Insurance: Protecting Your Family

Another key insurance consideration for young physicians is life insurance, particularly if you have a spouse or children who depend on your income. Life insurance can provide financial protection for your loved ones in the event of your untimely passing, ensuring that they are not burdened with financial stress during an already difficult time.

For young physicians, term life insurance is often the most practical and affordable option. Term life insurance provides coverage for a specific period—such as 20 or 30 years—at a fixed premium. It’s designed to cover the years when your family is most financially vulnerable, such as when your children are young or when you still have significant debts.

Personal Liability Insurance: Protecting Your Assets

Auto insurance and home or renters’ insurance policies generally include a level of personal liability coverage. This coverage protects you if someone is injured on your property or in an accident involving your vehicle, and they sue you.  Consider increasing the liability limits on these policies.

In addition to auto and home/renters’ insurance, young physicians should consider purchasing a personal umbrella liability insurance policy. Umbrella insurance provides an extra layer of liability protection beyond the limits of your other policies. For example, if you’re involved in a serious accident and the damages exceed your auto insurance’s liability limit, an umbrella policy would cover the additional costs, up to its limit. If you don’t have enough insurance to cover a judgment, the person who sued you can collect against your future income and certain assets.

For young physicians, umbrella insurance is an affordable way to protect your future earnings and assets from significant financial loss due to lawsuits or major liability claims.

Conclusion: A Holistic Approach to Risk Management

As a young physician, you have a lot on your plate as you launch your career.  Finding the time to take a proactive approach to insurance is essential for long-term financial security. Disability insurance protects your income, life insurance safeguards your family, and personal liability insurance shields your assets. By securing these types of coverage early in your career, you can ensure that you’re prepared for any challenges that come your way, allowing you to focus on what matters most—your loved ones, your patients, and your future.