Pharmacist Disability Insurance

[Sunshine98]

I get it through my employer but I will be honest: I haven't read the fine lines about it (and will do so.) But was wondering does anyone take it through another company? If so which one are you satisfied with? Trying to get some things in order ( increase life insurance, get umbrella insurance, disability) and have completed things ( 6 month Emergency Fund and own my house now).

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[sakigt]

In for info about this and the umbrella policy...

 

[TLAD123]

My information comes from the well-referenced White Coat Investor.

Life insurance: low cost, level-premium, term policies x20-30 yrs.

Umbrella: once liability limits on car and homeowner/renter insurance are raised appropriately (100k-300k), obtain umbrella policies to cover assets if you feel this is appropriate.

Disability: follow the series of 5 posts on disability insurance at the above link (well referenced, health care-based information). Watch out for riders and make sure you have the appropriate ones that fit your goals.

 

[LBKCLU]

You will want to look for the same things in an individual policy that a physician would be looking for including Non-Cancelable, Guaranteed Renewable, an "Own-Occupation" definition of Total Disability, a Residual Disability Rider, a Cost Of Living Adjustment (COLA) Rider, a Future Increase Option (FIO) Rider and possibly a Catastrophic Disability Benefit (CAT) Rider.

Some policies will cover disabilities related to mental and nervous conditions in the same way as any other accident or illness and some will have limits (typically 24 months over your lifetime). Some policies will allow you to collect benefits should you reside outside of the United States while on claim (others will have limitations for those types of claims) and others will not.

While my article is a little on the older side, it will help you determine what you feel you need/want in a policy. Then, someone like me, can determine the amount of individual coverage available to you (based upon your earned income and employer provided coverage, if any) provide you with illustrations of coverage to review, including any applicable discounts and share with you the pros and cons of each carrier's policy to help you determine what is best based upon your individual needs and goals.

http://www.nysscpa.org/cpajournal/2007/1207/essentials/p56.htm

 

[confettiflyer]

Life insurance: low cost, level-premium, term policies x20-30 yrs.

TLAD123 has a good post, I'm gonna throw in this piece of advice to help save money: consider staggering your life insurance policies and spread them out to 3 different companies.

Instead of, say, a single $1.5M policy at one company x 30 years, you can split it up as follows:

$500k @ 10 years w/ company A
$500k @ 20 years w/ company B
$500k @ 30 years w/ company C

Two benefits:

1) Graded benefit of $1.5M --> $1M --> $500k will coincide with increasing savings over time. You expiring at age 30 is a larger financial stressor on your dependents vs. when you're 50 or even 60. That saves you from holding life insurance you don't really need.

2) Not all your eggs are in one basket. Set it up so company C is well known and/or well capitalized. Failure probably won't happen (see: AIG bailout), but it seems to make sense.

A single physical/blood draw will be needed vs. 3, just 3x the paperwork and the need to keep track of 3 policies might dissuade you (just set it on annual auto pay and put it in your google calendar to remind you).

 

[LBKCLU]

I would agree with some type of laddering approach but disagree with what has been stated above.

Insurance companies typically have "banding" (where the cost per $1,000 of death benefit is reduced once you reach certain face amounts). Therefore, in many cases, the higher the coverage amount, the lower the cost per $1,000 of death benefit. By purchasing multiple policies from multiple companies, you are also incurring additional annual policy fees. If you purchase smaller death benefit (face) amounts, that policy fee is higher relative to the total annual premium.

Banner Life's (William Penn in New York) Term policy allows you to add term riders to the base policy. As a result, you can purchase your coverage from one carrier and eliminate additional policy fees. So, using the example above, you could purchase a $500,000 30-Year Level Premium Term policy from Banner Life, with Level Premium Term Riders for $500,000 each for 10-Years and 20-Years.

When you are dealing with a total coverage amount of $1,500,000 (which is relatively small) it really does not pay to spread out the risk or pay additional monies for this "protection" in the unlikely event that something happens to one of the carriers.

Here is an article that I wrote on how to shop for term life insurance. Hopefully, you will find it informative.

http://www.physicianfinancialservices.com/files/7760/OPM Term Life Article.pdf

 

[Old Timer]

For life insurance. It should be renewable and convertible. You should only buy from companies that sell in New York State.

 

[LBKCLU]

In for info about this and the umbrella policy...

Here is an article that I wrote on umbrella policies that you might find informative.

http://www.physicianfinancialservices.com/files/7760/OPM Umbrella Policy.pdf

 

[Sparda29]

I wonder if these employer provided life insurances would still pay out if I die in a skydiving accident.

 

[confettiflyer]

Here is an article that I wrote on umbrella policies that you might find informative.

http://www.physicianfinancialservices.com/files/7760/OPM Umbrella Policy.pdf

"Suppose you go home after a long day at the office and find the mailman collapsed on your front lawn, looking like a snow angel, with letters everywhere."

I'm quite enjoying these articles.

 

[LBKCLU]

For individual policies, if you had a history of skydiving and disclosed that on your application, and your policy was approved and put inforce, it would pay. In fact, policies even pay for suicide if the policy was inforce for more than 2 years since the date of issue (good to know at a cocktail party).

Group life insurance is usually not underwritten up to a certain amount of coverage unless evidence of insurability is required. Even then, those policies typically do not ask about avocation activities.

 

[LBKCLU]

Here is another good one that is geared towards resident physicians but works just as well for pharmacists. I co-authored it with Jim Dahle, M.D. (aka White Coat Investor).

http://www.physicianfinancialservices.com/files/7760/AAD Directions in Residency Summer 2012.pdf

 

[Sunshine98]

Thank you for the responses. I know I got some reading ahead of me. One thing I've done this year is make a list and want to get my ducks lined up in a row . Does the same companies the White Coat Investor lists cover Pharmacists or just Physicians?

 

[confettiflyer]

I consider myself fairly financially savvy, but I have learned quite a bit just reading those articles you posted. Umbrella liability wasn't even really on my radar...assets sort of just creep up on you. When you're used to being a poor student, it's weird thinking about your most valuable asset *isn't* your laptop and car, it's even weirder thinking that there might actually be people depending on your income other than yourself.

 

[TLAD123]

Thank you for the responses. I know I got some reading ahead of me. One thing I've done this year is make a list and want to get my ducks lined up in a row . Does the same companies the White Coat Investor lists cover Pharmacists or just Physicians?

I believe the only physician specific insurance he may refer to would be for liability. Term life insurance should apply for all, as should disability.

 

[LBKCLU]

Thank you for the responses. I know I got some reading ahead of me. One thing I've done this year is make a list and want to get my ducks lined up in a row . Does the same companies the White Coat Investor lists cover Pharmacists or just Physicians?

You would look at the same companies for disability insurance as a Pharmacist that are mentioned on www.whitecoatinvestore.com. You will also want to make sure to take advantage of any discounts that may be available to you via your school, employer or association.

 

[LBKCLU]

I consider myself fairly financially savvy, but I have learned quite a bit just reading those articles you posted. Umbrella liability wasn't even really on my radar...assets sort of just creep up on you. When you're used to being a poor student, it's weird thinking about your most valuable asset *isn't* your laptop and car, it's even weirder thinking that there might actually be people depending on your income other than yourself.

Thank you for the kind words! I am glad that you found the articles to be informative.

 

[HouTX]

lol informative yet trolling. op doesn't even realize it

 

[Sunshine98]

op doesn't even realize it

I realize more than you know. I do have manners.