1. How often do you worry if you have the right levels of coverage for disability or life insurance?
Hal Grotke, president, CEO and medical director at Redwood Family Practice in Eureka, California believes very strongly that he does not have the correct amount of disability insurance. Knowing to the cent how much to pay into disability income insurance can be tricky, after all, D.I. is a calculation based on chance, as it’s not easy to predict if you will become injured or fall ill. When calculating how much you’ll need until you’re healed, consider the following factors:
- Monthly net income (individual)
- Monthly expenses (current)
- Monthly expenses during disability
- Length of disability
- Amount of employer disability coverage
- Length of disability coverage
It’s difficult for young family physicians to understand the true value of disability insurance, and how the bills will get paid, if injury or illness set in. AAFP Insurance makes it easy for any family physician at any stage of their career, to understand and afford appropriate disability insurance coverage, as becoming unable to work due to injury or illness is more common than most family physicians realize. For additional information on the threat of disability, check out our infographic.
Having the right level of life insurance is another financial issue that shouldn’t go overlooked. Grotke states that, “I think my life insurance is OK but I’m not sure. … I don’t know how to assess which option — which insurance company — may be the right one to acquire insurance from.” Similar to D.I., figuring out your life insurance options can also be confusing. While this is a crucial step that adds to your family’s financial security, there are 35 million American households who do not have life insurance. The main reason for lack of coverage is the misconception that life insurance is too expensive. The benefits of a life insurance policy outweigh the costs of not purchasing one.
Life insurance is all about providing financial security for your family’s future which is why it’s important to purchase a policy as soon as possible. If you buy young, rates will be lower since you are more likely to be in better health. Don’t believe us? See how we dispel common myths about life insurance. Having life insurance is also a good way to make sure your debts aren’t passed on to your loved ones when you’re gone.
Want to be featured in Part II? Tell us in the comments section what was the best piece of financial advice you ever received, that you wish others knew?
Please include your professional title and state in which you practice family medicine.
