As a medical professional, you likely understand why it’s so important to make sure that you have physician disability insurance coverage. But do you know just how much coverage you should carry?
Keep reading to learn the answer.
The Amount Coverage You Require Depends on Your Needs
If you’re a doctor, you’ve invested quite a bit into your career and the income you’ll earn because of it. In the event you become disabled, you’ll need to ask yourself the following question:
“How much of my income would I like to protect?”
It’s common for insurance companies to offer 60% of earned income in insurance coverage. While this may seem like enough, it might not be.
Consider this analogy: Think about homeowner’s insurance. If your entire house is devastated in a flood, how much of it would you want to replace? Just 60%, or the whole thing? Most likely, you’d hope to replace it all.
Disability insurance coverage is very similar. In the event you become disabled, you’ll probably want enough coverage to supplement as much of your income as you can.
Don’t Forget About Taxes
The amount of compensation you’ll receive depends not only on the amount of coverage you carry but also on the type of plan you have. The taxes you’ll owe may differ depending on your policy and who provides it.
If your policy is part of a work benefit, you’ll need to make sure that you purchase enough coverage to bring home the amount you need while accounting for the taxes you’ll owe. However, if you purchase private insurance outside of work, you won’t have to pay taxes on the benefits you receive.
In short, if your work provides your benefits, expect them to be taxed and plan accordingly. If you purchase your own benefits, you’ll only need to account for the amount of money you take home after taxes.
We’re Here to Help
If you require assistance in purchasing physician disability insurance or your claim was wrongfully denied, we may be able to help. Our attorneys here at Dabdoub Law Firm are highly skilled in insurance law and have helped many others in situations like yours receive the compensation they were owed. Don’t hesitate to contact our office with your case right away.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an attorney about your case.