Planning for Plan B: What Happens When You Can’t Work Anymore

Many physicians see themselves as invincible. As healthcare providers, they are used to projecting an image of strength and competence.

It is therefore not surprising that doctors who suffer from a disabling injury or illness are often unprepared, both emotionally and financially, for the possibility that they may suddenly find themselves unable to work.

Before you find yourself in such a predicament, you should assess the scope and extent of your long-term disability insurance while also being sure that your financial house is in order.

Planning for Plan B: What Happens When You Can’t Work Anymore

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Generally speaking, a typical doctor can ensure a comfortable retirement following a 25-30 year career by saving 20% of his or her gross income.

Sound Investment Strategies for Physicians and Other High-Income Professionals

While 15% is a common benchmark, because medical professionals typically start earning later and will receive a smaller relative benefit from Social Security tax payments, more savings is necessary.

Investing a portion of your earned income is also a good strategy to build wealth, as long as you implement a reasonable investment strategy.

While what is “reasonable” will differ from investor to investor, depending on how much risk you are comfortable with, as well as your age and where you are in your career, there are some basic strategies that apply to all professionals.

Disability insurance provides financial protection if you become unable to work due to an injury or illness.

Long-Term Disability Insurance is Also a Wise Investment

One of the most important aspects of your long-term disability policy will be whether it provides “own occupation” coverage or “any occupation” coverage.

With “own occupation” coverage, you are entitled to benefits if you are unable, due to your injury or illness, to perform the material and substantial duties of the occupation you were performing when you became disabled.

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