Insurance For Physicians – What Kinds Do You Need?
Your journey to becoming a physician took years of challenges and commitment to complete . You remember the gruelling hours needed to write the MCAT, get through medical school, find your way to residency, complete residency, maybe a fellowship and finally get to start your practice. Now, you may want to ensure that you can protect your income and plan your legacy for the next generation.
The good news is that there’s a variety of ways insurance can help you reach these goals.
Protect your income
If you want ensure your income is protected, three types of insurance can help you and your family are provided for:
- Critical illness insurance provides you with a tax-free lump sum benefit payment if you have a serious illness such as a cancer, heart attack or stroke diagnosis. This will enable you to take the time needed to get back on your feet and allowing extra income for your partner to be there with you.
- Disability insurance will replace up to seventy percent of your income if you are ill or injured and cannot work.
- Life insurance can ensure that your family will be taken care of if you die prematurely. You can select an amount of coverage that is appropriate for your needs.
If you have a clinic, office expenses will continue to be incurred. Having insurance that protects your office and staff can help protect your savings from being eroded by a disability. You should consider:
- Overhead insurance to cover things like rent and salaries if you are unable to work for any reason.
- Commercial office insurance covers your contents, against perils such as fire and includes liability coverage (this is different than the CMPA coverage).
Smart tax planning to increase your wealth
Life insurance, whether it is a term or permanent policy can protect your family’s lifestyle and outstanding obligations.
You can use a permanent life insurance policy to help allocate your investment portfolio by growing tax-free inside the policy while you are alive.
Life insurance proceeds are tax-free upon death, which can be used to mitigate estate taxes and pass the funds tax-free to your estate.
Maximize my estate and leave a legacy
There are several benefits to having life insurance as part of your estate:
- Beneficiaries receive the death benefit tax-free.
- Beneficiaries can use the death benefit to pay for funeral expenses or taxes on other assets.
- Anyone can be the beneficiary of a life insurance policy – from your grandchildren to your favourite charity.
Having the right kind of insurance can help protect your income, minimize your taxes, and enable you to provide a meaningful legacy after your death. Feel free to contact us to go through your goals to ensure you have your bases covered.