Three Critical Risk Management Initiatives for Doctors

Preserve Practice Income and Protect Retirement Savings

Taking the appropriate steps to mitigate risk is just as critical to your financial future as the many things you do everyday to generate income and create savings. By addressing your financial life in its totality, you can help prevent potential losses and maximize your ability to reap the rewards that an extensive education and years of hard work have earned.

Three critical risk management initiatives can preserve and protect your current income stream, the value of your practice and the financial security of your family. Specifically, selecting the appropriate disability, long-term care and life insurance coverage can offset serious threats to your wealth. What's more, under certain business structures you can deduct some policy costs as well as enjoy return of premium, if available.

A Costly Proposition: The Future of Long-Term Care

According to an October 2004 study conducted by CareScout, for Genworth Financial, the cost of 40-hr./wk. in-home assistance averages $38,792 per year. Just as daunting, the national average for a private room in a nursing home costs $65,200 annually, and is expected to climb to $100,000 per year by 2015.

Even if these statistics don't shock you, what should be of concern is that 58% of Americans* are forced to pay for long-term care "out-of-pocket" because they have not taken the proper steps to insure against it. The appropriate policy can make all the difference in the world. And, the earlier you purchase your coverage plan, the less expensive the premiums are likely to be.

What Will You Leave Behind?

Benjamin Franklin once said, "In this world, nothing is certain but death and taxes." And, if that is true, death is not simply a risk for you and your family's financial future…it is an inevitable obstacle.

Based on 2000 and 2001 U.S. Department of Health and Human Services statistics, approximately 25% of all deaths nationwide are working people. In order to preserve the lifestyle of those you leave behind, a variety of choices are available. Depending on your needs, Term Life, Whole Life and/or Universal Life insurance should be a component of your integrated financial plan.

Accidents Happen

*March 2000 Report for American Council of Life Insurers

The ability to perform at your peak every day is imperative for all doctors, no matter what your specialty. So, when accidents happen, it can mean the end of an illustrious career.

Being healthy or cautious is not enough, as the Health Industry Association of America indicates that 30% of U.S. residents between the ages of 35 and 65 will suffer a disability lasting a minimum of 90 days. Three months without income can significantly impact your family, let alone your practice. In light of this, doctors should select short- or long-term disability policies to cover themselves and their potential loss of earnings.

Financial independence is not just about generating wealth, it's also about reducing vulnerability to unexpected events. Talk to Greenbook about implementing long-term care, life and disability insurance policies as part of your integrated financial plan before risk becomes reality.