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A Guide to Medical Practice Loans in 2023

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What is a business loan and why is it improtant to physicians?

A business loan is a type of financing that is used by businesses to fund various expenses, such as purchasing equipment, expanding operations, or working capital.

Business loans can be secured, which means that they are backed by collateral, or unsecure, which means that they are not backed by collateral.

Business loans can come in a variety of loan programs, such as term loans, lines of credit, SBA loans, and equipment financing, each designed to meet different business needs and goals.

Understanding the differences between these programs is important for businesses to choose the right loan for their specific situation.

What is a medical practice loan?

A medical practice loan is a type of loan that is specifically designed to help medical practice financing to be able to purchase or expand a medical business.

These loans are often used to help doctors and other medical professionals cover the costs of setting up a new practice, including the purchase of equipment and supplies, the construction or renovation of a medical office, and the hiring of staff.

Medical practice loans may be offered by banks, credit unions, and other financial institutions, and may be secured or unsecured, depending on the borrower’s creditworthiness and the lender’s requirements.

When can a medical practice loan be used?

A medical practice loan can be used to finance a wide range of expenses related to a medical practice, including the purchase of equipment, the expansion of facilities, the hiring of new staff, or the implementation of new technology.

These loans can also be used to cover operating expenses, such as payroll, rent, and marketing costs. Ultimately, medical practice loans are designed to help existing practices grow their businesses and improve patient care, or to help startup companies increase funding options for new healthcare practices.

Medical practice loans can be used for a variety of purposes, including:

 Setting up a new medical practice: If you are a medical practitioner who is starting a new practice, you may need to borrow money to cover the costs of setting up your office, purchasing equipment, and hiring staff.

Expanding an existing medical practice

If you already have a medical practice but want to expand it, a medical practice loan can help you cover the costs of adding more staff, purchasing additional equipment, or expanding your office space.

Refinancing existing debt

If you already have a medical practice and are carrying a significant amount of debt, you may be able to refinance your existing debt with a medical practice loan to get a lower interest rate or more favorable terms.

Covering operating costs

Medical practices can be expensive to run, and a medical practice loan can be used to cover the day-to-day operating costs of your practice, such as salaries, rent, and utilities.

Investing in new technology

If you want to invest in new technology or equipment for your medical practice, a medical practice loan can help you finance these purchases.

What are the limitations of a medical practice loan?

The limitations of a medical practice loan depend on the specific loan option chosen by the borrower.

For example, a secured term loan may require collateral, such as property or equipment, which could put the borrower’s assets at risk if they are unable to repay the loan.

Similarly, lines of credit may have variable interest rates that can increase over time, potentially leading to higher borrowing costs. SBA loans may require extensive paperwork and have strict eligibility requirements.

There are several limitations to medical practice loans:

Qualification requirements: To qualify for a medical practice loan, you will generally need to have a good credit score and a solid financial history. You may also be required to provide collateral, such as real estate or equipment, to secure the loan.

Limited funds: Medical practice loans typically have smaller loan amounts compared to other types of loans, so they may not be sufficient to cover larger expenses or investments.

Repayment terms: Medical practice loans may have strict repayment terms, including a fixed repayment schedule and a requirement to make regular payments. If you are unable to make your loan payments on time, you may be at risk of defaulting on the loan, which can have serious consequences for your credit score and financial health.

Interest rates: Interest rates on medical practice loans may be higher than those on other types of loans, especially if you have less-than-perfect credit.

Prepayment penalties: Some medical practice loans may have prepayment penalties, which means that you will be charged a fee if you pay off the loan early. This can make it more difficult to pay off the loan ahead of schedule and may increase the overall cost of the loan.

How to apply for a medical practice loan?

To apply for a medical practice loan, you will need to follow these steps:

Determine your financing needs

Before you apply for a loan, it is important to create a business plan to understand how much money you need and what you will use the funds for. This will help you determine how much to borrow and what type of loan will best meet your needs.

Shop around for lenders

There are many different lenders that offer medical practice loans, so it is important to shop around and compare offers from multiple lenders. Look for lenders that offer competitive interest rates and terms and consider whether a secured or unsecured loan is right for you.

Gather necessary documents

To apply for a medical practice loan, you will need to provide a few documents to the lender, including financial statements, tax returns, and proof of income. You may also need to provide collateral, such as real estate or equipment, to secure the loan.

Submit your loan application

Once you have gathered all the necessary documents, you can submit your loan application to the lender. Be sure to review the application carefully before submitting it, as errors or omissions can delay the approval process.

Wait for a decision

After you submit your loan application, the lender will review it and decide whether to approve your loan. This process can take a few days or several weeks, depending on the lender and the complexity of your application. If your loan is approved, the lender will provide you with a loan agreement outlining the terms and conditions of the loan.

Review and sign the loan agreement

Once you receive the loan agreement, it is important to review it carefully and make sure you understand all the terms and conditions of the loan. If you are satisfied with the terms of the loan, you can sign the agreement and return it to the lender. Once the lender receives the signed agreement, the loan funds will be disbursed to you.

Who commonly uses a medical practice loan?

A medical practice loan is commonly used by healthcare professionals who need business financing such as doctors, dentists, optometrists, chiropractors, and even veterinarians who own their own practices.

Medical practice loans are used for a variety of reasons, including:

Practice Acquisition

Medical professionals may need a loan to acquire an existing medical practice or to buy out a partner.

Equipment and Technology

Medical equipment and technology can be expensive, and medical professionals may need a loan to purchase or upgrade equipment to provide better care to their patients.

Renovations and Expansion

Medical practices may need to renovate or expand their facilities to accommodate more patients or to provide additional services. A medical practice loan can help cover the costs of these renovations and expansions.

Working Capital

Medical practices may need additional working capital to cover the costs of day-to-day operations, including salaries, rent, and other expenses.

Debt Consolidation

Medical professionals may have multiple outstanding loans or debts, and a medical practice loan can be used to consolidate these debts into a single, more manageable payment.

Overall, a medical practice loan can be a useful financial tool for medical professionals to help grow and improve their practices, provide better care to their patients, and manage their finances more effectively.

Types of medical practice loans

Medical practice loans are financing options designed specifically for healthcare professionals to start, acquire, or expand their practices.

There are two types of medical practice loans: secured loans that require collateral, and unsecured loans that don’t require collateral but have higher interest rates.

What is an SBA 7(a) loan?

An SBA 7(a) loan is a type of small business loan that is guaranteed by the U.S. Small Business Administration (SBA). The SBA 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses.

Pros of SBA 7(a) loan

It can provide favorable interest rates, longer repayment terms, and higher loan amounts compared to other types of financing, which can be helpful for physicians who are looking to start or expand their practices.

Cons of a SBA 7(a) loan

It can have more stringent eligibility requirements and may require more paperwork and documentation compared to other types of loans. Additionally, some physicians may not qualify for SBA loans if they have significant outstanding debt or if they do not meet the SBA’s size standards for small businesses in their industry.

Traditional bank loans

A benefit of a traditional bank loan for a physician is that it can provide greater flexibility and customization in terms of loan terms and repayment schedules, which can be tailored to meet the unique needs of the physician’s practice and financial situation.

Pros of traditional bank loans

Traditional bank loans can offer more flexibility in terms of loan terms, repayment schedules, and loan amounts, and may require less paperwork and documentation compared to SBA loans.

Cons of traditional bank loans

Traditional bank loans can have higher interest rates and shorter repayment terms compared to SBA loans, which can increase the monthly payments and make it more challenging for physicians to meet their financial obligations.

Additionally, traditional bank loans may have stricter underwriting or eligibility requirements and may require collateral, such as personal or business assets, to secure the loan.

To obtain a traditional bank loan, physicians will typically need to provide a: detailed business plan, financial projections, and other relevant documents to the lender, as well as meet the lender’s eligibility requirements, which may include having a strong credit history, collateral, and proof of income. It is important to shop around and compare rates and terms from multiple lenders to find the best loan option.

Short-term loans

Short-term loans are loans that have a shorter repayment period than traditional loans, typically ranging from a few months to a couple of years. These loans can be a useful source of financing for businesses that need a quick injection of cash to cover unexpected expenses or take advantage of a short-term opportunity.

Some benefits of short-term loans include their quick turnaround time for approval and funding, as well as the flexibility to use the funds for a variety of business purposes. However, short-term loans may also come with higher interest rates and fees compared to long-term loans, as the lender is taking on more risk by providing a loan with a shorter repayment period.

To obtain a short-term loan, you can work with a traditional lender, such as a bank, or consider alternative lending options, such as online lenders or peer-to-peer platforms.

Term loans

Term loans are loans that have a fixed repayment period, usually several years. These loans can be a good option for businesses that need a larger amount of financing and have a clear plan for how they will use the funds and repay the loan. Some benefits of term loans include their relatively low interest rates and the option to structure the loan with fixed or variable interest rates and repayment terms.

However, term loans may also require collateral and may take longer to be approved and funded compared to short-term loans. To obtain a term loan, you can work with a traditional lender, such as a bank, or consider alternative lending options, such as online lenders or peer-to-peer platforms.

A business line of credit

A business line of credit is a flexible financial product that allows a business to borrow up to a certain limit as needed, rather than borrowing a set amount all at once. The business is only charged interest on the funds that are actually borrowed and used and can reuse the line of credit as it is paid off.

This can make a line of credit a useful tool for businesses that have fluctuating cash flow or need to have access to funds for unexpected expenses. Some benefits of a business line of credit include its flexibility, the ability to borrow and repay funds as needed, and the potential for lower interest rates compared to credit cards.

However, a business line of credit may require collateral and may have higher fees than other types of financing. To obtain a business line of credit, you can work with a traditional lender or consider alternative lending options.

Equipment Financing

Equipment financing is a type of loan or financing arrangement that allows a business to purchase equipment by paying for it overtime, rather than paying for it all upfront. This can be a useful option for businesses that need to acquire expensive equipment but may not have the funds available to pay for it in full.

Some benefits of equipment financing include the ability to preserve working capital, the option to structure the financing to match the expected useful life of the equipment, and the potential for tax advantages.

However, equipment financing may require collateral and may have higher interest rates or fees compared to other types of financing. To obtain equipment financing, you can work with a traditional lender or consider alternative financing options, such as equipment leasing or vendor financing.

Commercial real estate loan

A commercial real estate loan is a financial product used to purchase, refinance, or renovate commercial property. These loans can be a useful option for businesses that need to acquire or improve a space for their operations but may not have the funds available to pay for it in full.

Some benefits of a commercial real estate loan include the potential for tax deductions, the ability to use the property as collateral, and the option to structure the loan with fixed or variable interest rates and repayment terms.

However, commercial real estate loans may have higher interest rates and fees compared to other types of financing and may require a down payment and extensive documentation.

To obtain a commercial real estate loan, you can work with a traditional lender or consider alternative financing options, such as a commercial mortgage-backed security (CMBS) loan.

Business credit card

A business credit card is a financial product that allows a business to borrow money to make purchases or withdraw cash, up to a certain credit limit.

Business credit cards can be a useful tool for businesses to manage cash flow, make purchases, and track expenses. Some benefits of a business credit card include the ability to earn rewards or cash back on purchases, the potential for a 0% introductory interest rate, and the option to set employee spending limits.

However, business credit cards may also have higher interest rates and fees compared to other types of financing and may require good credit to qualify. To obtain a business credit card, you can apply through a credit card issuer or consider options from your bank or financial institution.

How to choose the best medical practice loan for you?

There are a few key factors to consider when choosing the best medical practice loan for your needs:

Purpose of the loan

It’s important to clearly define the purpose of the loan and choose a loan product that aligns with your needs. For example, if you are looking to purchase a medical practice, you may want to consider a commercial real estate loan or an SBA 7(a) loan.

Repayment terms

Consider the repayment terms of the loan, including the interest rate, repayment period, and any fees associated with the loan. Make sure the terms are manageable for your practice’s cash flow and budget.

Eligibility requirements

Different loan products have different eligibility requirements, such as credit score, revenue, and time in business. Make sure you understand the requirements and whether your practice meets them before applying.

Where to get a medical practice loan?

Bank of America

Bank of America offers a variety of loan products for medical practices, including term loans, lines of credit, and equipment financing. Some potential benefits of borrowing from Bank of America include the potential for competitive interest rates, the option to structure the loan with fixed or variable interest rates and repayment terms, and the ability to work with a dedicated relationship manager.

However, loan products may require collateral and may have fees associated with them and may have eligibility requirements such as a minimum credit score and time in business.

Wells Fargo

To obtain a medical practice loan with Wells Fargo, physicians can take advantage of the bank’s competitive interest rates and flexible repayment terms, as well as its large network of branches and online tools to make the application process convenient and accessible.

However, Wells Fargo may have stricter eligibility requirements compared to alternative lenders and may require collateral or other assets to secure the loan, and the bank’s past regulatory and reputation issues may give some borrowers pause.

Online Lender

To obtain a medical practice loan with an online lender, physicians can typically apply through the lender’s website, and may need to provide basic financial information, such as bank statements and tax returns, as well as meet the lender’s eligibility requirements, which may vary depending on the lender.

Online lenders may offer faster loan processing times and more flexible loan terms compared to traditional lenders but may also have higher interest rates and fees.

To obtain a medical practice loan with alternative lenders, physicians can apply online or in person, and may need to provide basic financial information, such as bank statements and tax returns.

Alternative lenders

Alternative lenders may offer faster loan processing times and more flexible loan terms compared to traditional lenders, but may also have higher interest rates and fees, and may be less regulated than traditional lenders, which can increase the risk of fraud or other scams.

Physicians should carefully research and compare rates and terms from multiple alternative lenders before choosing a loan option.

Can you refinance a medical practice loan?

Yes, it is possible to refinance a medical practice loan. Refinancing a loan involves taking out a new loan to pay off an existing one, often with the goal of obtaining more favorable terms or a lower interest rate.

How to secure a lower interest rate for a medical practice loan?

If interest rates have decreased since the original loan was taken out, refinancing may allow the practice to secure a lower rate and save on interest payments.

How to extend the repayment period for a medical practice loan?

Refinancing may allow the practice to extend the repayment period, which could lower monthly payments but increase the overall cost of the loan.

What is the interest rate on a medical practice loan?

The interest rate on a medical practice loan can vary depending on several factors, including the lender, the loan product, the borrower’s creditworthiness, and market conditions.

For example, term loans from traditional lenders such as banks may have interest rates ranging from around 5% to over 20%, depending on the borrower’s credit score and the loan terms.

SBA 7(a) loans, which are backed by the Small Business Administration, may have interest rates starting at around 7.5% for loans with terms of under 7 years.

Equipment financing and lines of credit may have interest rates ranging from around 7% to 30%.

Ameritas Disability Insurance Review 2023

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Insurance Carrier: Ameritas Insurance Company

Ameritas Insurance Company is a well-established insurance and financial services company that was founded in 1887 and is based in Lincoln, Nebraska.

The company has been accredited by the Better Business Bureau since 1955 and currently holds an A+ rating from the BBB.

In addition, Ameritas Insurance Company has a strong financial strength rating, with an A (Excellent) rating from A.M. Best, a leading insurance rating agency.

The company offers a range of insurance and financial products, including life insurance, annuities, disability insurance, and investment services.

William “Bill” Lester currently serves as the CEO of Ameritas Insurance Company, having taken over the role in 2017, bringing with him years of leadership experience in the financial services industry.

What are Ameritas’s disability insurance policies?

Ameritas offers two types of disability income insurance policies: DInamic Cornerstone Income Protection and DInamic Foundation. The former is a non-cancelable policy that pays a monthly benefit for a covered total disability resulting from an injury or sickness.

The premium paying and coverage periods run through the policy anniversary following the insured’s 65th birthday (67th birthday for a to age 67 benefit period). Premiums are guaranteed to age 65 or age 67, and benefits payable are for total disability, as defined in the policy.

The latter, DInamic Foundation, is a guaranteed renewable policy that offers different definitions of total disability, benefit and elimination periods, allowing for the design of a policy that fits the individual needs of customers. T

he premium paying and coverage periods run through the policy anniversary following the insured’s 65th (67th birthday for a to age 67 benefit period), with premiums subject to change on a class basis with state approval. Benefits payable are for periods of total or residual disability, as defined in the policy.

Both policies are designed to provide valuable financial protection and peace of mind to individuals in case of an unexpected injury or illness that prevents them from earning an income.

The non-cancelable policy provides a more comprehensive safety net with a guarantee of premiums to age 65 or age 67, while the guaranteed renewable policy offers more flexibility in terms of coverage options and the ability to change premiums.

It is important to note that both policies are conditionally renewable for life beyond the coverage period, provided the insured is not receiving benefits under the policy or any attached rider, the policy was in force the prior year with no premium in default, the insured is actively at work at least 30 hours each week at his/her usual place of employment, proof of current income is provided, and the insured pays the premium in effect for his/her age at the time of renewal.

Ameritas Life Insurance Corp. offers valuable protection and benefits that can help insured individuals and their families maintain their financial stability in the event of an unexpected injury or illness. It is recommended that clients carefully review and compare the features of both policies to choose the one that best suits their individual needs and budget.

Pros of Ameritas Disability Insurance


One of the main pros of having disability insurance through Ameritas is the availability of a true own occupation policy, which allows you to receive benefits if you’re unable to perform the duties of your specific occupation, even if you’re able to work in another capacity. This type of policy provides a high level of protection and peace of mind for professionals who rely on their specialized skills and expertise.

Additionally, Ameritas offers coverage for catastrophic disabilities, which can help provide financial support in the event of a severe and life-changing injury or illness. Most importantly when searching for the right long-term disability insurance coverage it is important to know the definition of disability, occupation definition and any other optional riders available.

Reimbursement for student loan payments during disability: The Student Loan Repayment (SLR) rider is designed to help policyholders keep up with their student loan payments if they become disabled. This can be a valuable benefit for those with student loan debt.

Lump sum savings benefit: The Lump Sum Savings (LSS) rider can help replace lost retirement contributions while the policyholder is disabled and not contributing to a retirement savings plan. This can provide some financial security during a challenging time.

Coverage for certain disabilities: The policy provides coverage for disability resulting from being a transplant donor or from cosmetic surgery that occurs more than six months after the issue date. This may provide additional peace of mind for those considering such procedures.

Occupational rehabilitation benefits: Disability benefits may be payable if the policyholder participates in an approved program of occupational rehabilitation, and the insurance company may participate in the cost. This can help policyholders recover and return to work more quickly.

Premium payments are waived during disability: Premium payments are waived upon approval of the policyholder’s claim, after they have been continuously disabled for at least 90 days. This can provide some financial relief during a difficult time.

Non-cancelable and guaranteed renewable policy: The policy is noncancelable and guaranteed renewable, meaning the insurance company cannot cancel the policy except for non-payment of premium, and cannot change the terms of the policy except to the benefit of the policyholder or per their request. This can provide some peace of mind that the policy will remain in force.

Coverage for pre-existing conditions: As long as pre-existing conditions have been fully disclosed and are not specifically excluded, they will be covered. This can be an important benefit for those with pre-existing medical conditions.

Partial Disability Benefit: in your disability insurance policy can provide financial support for an insured who is only partially disabled and unable to work full-time due to a sickness or injury. The benefit can help cover the loss of income and provide some relief during a difficult time, and is included in the Guaranteed Renewable base policy without the need for additional riders.

The Future Increase Option (FIO): This rider from Ameritas allows an insured to increase the base monthly benefit on a policy without providing evidence of physical insurability up to three times the base monthly benefit amount. This rider is available to occupation classes 6A-2A and 6M-2M, 4P, and 4D, and for issue ages 18-50. The FIO rider is a valuable benefit as it allows policyholders an automatic increase of their coverage without the need for further medical underwriting, providing flexibility in the face of changing financial circumstances or life events.

Waiver of Premium: Which is included in your disability policy ensures that your insurance coverage remains in force even if you become totally disabled and unable to work, without the need to pay premiums. This can provide financial security and peace of mind during a difficult time, and also ensures that the policyholder does not lose any value that they have already invested in the policy due to disability. Additionally, the provision allows for a refund of any premiums paid after the date of disability, which can help offset the financial impact of being unable to work.

Presumptive Total Disability: Provides coverage for specific injuries or disabilities that can result in total disability. This means that if the insured suffers from a loss of sight, hearing, speech, or the use of limbs, the policy will presume them to be totally disabled, even if they are still able to work. Additionally, the elimination period will be waived, which means that the insured will receive benefits from the policy immediately without waiting for the elimination period to pass.

Good Health Benefit: Allows for a reduction in the elimination period by two days for every consecutive policy year without receiving monthly disability benefits, with a minimum of 30 days. However, once monthly disability benefits are received, the benefit is reset to zero and will accumulate again for every consecutive year without receiving benefits.

Cost of Living Adjustment (COLA): Both the “COLA6C” and “COLA3C” riders provide an annual increase in the monthly benefit payable, based on the consumer price index for all urban customers (CPI-U), beginning 12 months after the date of disability. However, the key difference between them is the maximum adjustment factor for “COLA6C” is 6% compounded annually with a minimum of 2%, while for “COLA3C”, the maximum adjustment factor is 3% compounded annually with no minimum. This has the effect of creating a “catch-up” provision for years of low to high inflation. The SIS rider, on the other hand, provides an additional benefit each month if the insured is receiving limited or no Social Insurance Benefits due to total disability.

Cons of Ameritas Disability Insurance

Here are a few potential cons or drawbacks to consider when it comes to having a disability insurance plan:

Exclusions and limitations: Disability insurance policies often have exclusions and limitations that can impact coverage. For example, certain medical conditions or disabilities may not be covered, or there may be restrictions on the amount of coverage you can receive.

Application process: The application process for disability insurance can be lengthy and require extensive medical exams and documentation. Some people may find this process to be invasive or difficult to navigate.

Waiting periods: Disability insurance policies often have waiting periods before benefits kick in. This means that if you become disabled, you may have to wait several weeks or even months before you start receiving benefits..

It’s important to carefully review the terms and conditions of any disability insurance products you are considering, and to weigh the costs and benefits to determine if it’s the right choice for your individual needs and circumstances. Please note availability and provisions vary by policy, state (New York) and occupational class (Medical or Legal).

Complaints About Ameritas Disability Insurance

According to the National Association of Insurance Commissioners (NAIC), Ameritas has one of the lowest complaint ratios in the industry, indicating a high level of customer satisfaction. In fact, Ameritas consistently ranks among the top disability insurance providers for customer service and claims handling.

There have been some complaints about Ameritas Disability Insurance, but many of them seem to be related to customer service issues rather than problems with the actual product. Some customers have reported difficulties with filing claims, slow response times, and unhelpful representatives.

However, it is important to note that complaints can still arise in individual cases, and it is always recommended to thoroughly review the terms and conditions of a policy before making a purchase to ensure that it meets your needs and expectations.

It’s important to note that while customer service issues can be frustrating, they don’t necessarily reflect the quality of the product itself. Ameritas Disability Insurance has received positive reviews for its coverage options and flexibility, as well as for its True Own Occupation definition of disability. Ultimately, it’s up to each individual to weigh the potential benefits and drawbacks of a disability insurance policy and decide whether it’s the right choice for their needs.

Third-Party Ratings of Ameritas Disability Insurance 

Ameritas has received high ratings from several independent rating agencies, including:

A.M. Best: Ameritas has an A (Excellent) rating from A.M. Best, indicating a strong financial position and ability to meet its financial obligations.

Standard & Poor’s: Ameritas has an A+ (Strong) rating from Standard & Poor’s, indicating a very strong capacity to meet financial obligations.

Moody’s: Ameritas has an A1 (Good) rating from Moody’s, indicating a low credit risk and strong financial stability.

Fitch: Ameritas has an A+ (Strong) rating from Fitch, indicating a low default risk and strong financial flexibility.

These high ratings demonstrate that Ameritas is a financially stable and trustworthy company that is well-equipped to meet its obligations to policyholders.

Wealthcare’s Rating of Ameritas Disability Insurance

Ameritas Life Insurance Company is a great company to purchase life insurance or disability insurance from for several reasons. Firstly, they have been in business for over 100 years, which is a testament to their stability and longevity in the industry. They have an A (Excellent) rating from A.M. Best, which indicates their financial strength and ability to pay claims.

Secondly, they offer a wide range of life and disability insurance products that can be customized to meet individual needs and budgets. They offer True Own Occupation disability coverage, which means that they will pay benefits if you are unable to perform the duties of your specific occupation, even if you are able to work in another capacity.

Thirdly, Ameritas has a strong reputation for customer service and satisfaction. They have received fewer complaints than their competitors to the National Association of Insurance Commissioners (NAIC), indicating a high level of customer satisfaction.

Overall, Ameritas Life Insurance Company is a great choice for those seeking life, disability or health insurance, as they offer high-quality products, excellent customer service, and a long-standing reputation for financial stability.

Review criteria

We used the following features in this review:

  • Ratings from other institutions. Other third-party institutions have rated Ameritas very highly. This includes AM, Fitch, and S & P. Only a few insurance companies have such a reputation.
  • Excellent products. Besides disability insurance, Ameritas also provides life insurance and retirement plans for individuals, helping them have a more secure financial future.
  • Complaints. We checked NAIC for complaints about Ameritas, and it checked all the right boxes. Very few complaints have been reported.
  • Reputation. The negligible complaints percentage means a company that can be trusted. It has a strong financial foundation that enables it to pay claims without issues.

 We continue to monitor the company’s progress every year, comparing it to local giants. Our reports aim to help consumers get the best insurance services.

Disability Insurance vs. Life Insurance

Disability insurance and life both cover income replacement, but they also differ in several ways. Life insurance pays out a lump sum benefit to the beneficiaries upon the death of the insured, while disability insurance pays out a monthly income to the insured if they become disabled and are unable to work.

The premiums for life insurance are generally lower than for disability insurance since the likelihood of the insured dying during the policy term is usually lower than the likelihood of the insured becoming disabled. Disability insurance premiums are higher due to the increased risk of disability and the potential for the insurer to pay out benefits for a longer period.

Life insurance benefits are usually paid out in a lump sum, while disability insurance benefits are paid out in monthly installments. Disability insurance benefits are also subject to a waiting period known as an elimination period, during which no benefits are paid, while life insurance benefits are typically paid out immediately upon the insured’s death.

Common Questions About Ameritas Disability Insurance

Is Ameritas a good company?

Yes. Ameritas is one of the largest insurance providers on the market. It has received the highest ratings from its party overseers, where it has proven a strong financial capability. You can get a long- or short-term policy with an easy underwriting process.

Is it worth it to buy disability insurance?
Disability insurance is the best way to protect your income because it provides financial support if you become unable to work due to illness or injury, ensuring that you can continue to pay your bills and maintain your lifestyle. Unlike other types of insurance, disability insurance is specifically designed to protect your income, making it an essential part of any financial plan.Without disability insurance, a professional may have to rely on savings or government benefits, which may not be enough to cover their expenses. Disability insurance can provide peace of mind and financial stability in the event of a disability.

What are the cons of disability insurance?

Coverage limitations: Disability insurance policies may have limits on the amount and duration of benefits paid out, as well as specific exclusions for certain types of disabilities or pre-existing conditions.

Waiting period: Most disability insurance policies have a waiting period before benefits kick in, which means that you may need to rely on other sources of income or savings during this time.

Despite the potential disadvantages of disability insurance, it is still important to have it because it provides a financial safety net for individuals who may become disabled and unable to work due to injury or illness. Without disability insurance, such individuals may struggle to make ends meet and maintain their lifestyle.

Who can qualify for disability insurance?

Individuals who earn an income and rely on it to support themselves and their dependents are generally eligible to obtain disability insurance from a company. The exact eligibility requirements can vary by insurer and policy, but in general, individuals must be in good health and not have pre-existing conditions that would prevent them from working. Some occupations may also be considered high-risk and may require a more specialized policy.

What are the best disability insurance companies?

There are several disability insurance companies in the USA. Ameritas ranks among the top. Some of the factors to consider in the best company include the benefit period, the insurance policy terms, company ratings, products offered, universal life insurance offers, and more. The top companies to consider when searching for disability insurance include, MassMutual, Guardian, The Standard, Principal and Ameritas.

Nurse’s Retirement: How to Make a Retirement Plan

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Working in healthcare as a registered nurse, nurse practitioner, or nurse educator involves providing care and support to patients who are facing physical or mental health challenges. Nurses work in a variety of settings, including hospitals, clinics, nursing homes, and community health centers.

They collaborate with other healthcare professionals to develop and implement care plans, administer medications and treatments, monitor patients’ progress, and provide emotional support to patients and their families. The nursing profession requires a high level of compassion, critical thinking, and excellent communication skills.

How to Create a Nurse’s Retirement Plan

Determine retirement income needs

The first step for a nurse in retirement planning is determining how much they will need. This can be done by estimating living expenses and factoring in additional costs such as healthcare and travel.

Maximize retirement account contributions

Nurses should aim to contribute as much as possible to their retirement accounts, such as a 401(k) or IRA, to maximize their tax-advantaged retirement savings.

Understand tax implications

Nurses should understand the tax implications of their retirement income, as retirement income is typically subject to income tax. They may also need to pay taxes on withdrawals from retirement accounts.

Consider other sources of retirement income

Nurses should consider other sources of retirement income beyond their retirement accounts, such as Social Security or pension benefits, to help supplement their retirement income.

Develop a withdrawal strategy

Finally, nurses should develop a withdrawal strategy for their retirement accounts, taking into account factors such as their age, tax bracket, and other sources of retirement income. This can help ensure that they are able to manage their retirement income in a tax-efficient manner and avoid unnecessary taxes or penalties.

What types of retirement options exist for nurses?

Pensions

A pension is a retirement savings plan that provides a regular income to a person after they retire. In nursing, a pension might refer to a retirement plan specifically for nurses or a general term used to describe any retirement plan a nurse is eligible to participate in.

Many nurses are eligible to receive a pension through their employer or through a professional organization, such as a union. The specifics of a pension plan will vary depending on the plan and the terms of the agreement under which it is offered.

401k

A 401(k) is a type of retirement savings plan that an employer sponsors. Many employers offer 401(k) plans as a benefit to their employees and may even match a portion of the employee’s contributions. Some nurses may be eligible to participate in a 401(k) plan through their employer. The specifics of the plan, including the employer’s contribution and the investment options available, will vary depending on the plan.

403B

Some nurses may be eligible to participate in a 403(b) plan through their employer if they work for a tax-exempt organization or a public school.  Contributions to a 403(b) are made on a pre-tax basis, which means that the money is taken out of an employee’s paycheck before taxes are calculated. This can reduce the employee’s taxable income, which can result in a lower tax bill.

Roth IRA

A Roth IRA is an individual retirement account that allows an individual to save for retirement on an after-tax basis. Contributions to a Roth IRA are not tax-deductible, but the money in the account grows tax-free, and qualified withdrawals are also tax-free. Like all other workers, nurses may be eligible to contribute to a Roth IRA if they have earned income and meet certain income requirements. 

Traditional IRA

A Traditional IRA, or Individual Retirement Account, is a type of retirement account that allows individuals to make contributions on a pre-tax basis, meaning that the contributions are deductible from their taxable income in the year they are made. The funds in the account grow tax-deferred until they are withdrawn in retirement, at which point they are taxed as ordinary income.

HSA

A health savings account (HSA) is a personal savings account that is used to pay for qualifying medical expenses. HSAs are often paired with high-deductible health plans (HDHPs) and are designed to help individuals save for healthcare expenses on a tax-advantaged basis.

The money in an HSA can be used to pay for a wide range of qualifying medical expenses, including deductibles, copays, and prescription medications. Some nurses may be eligible to participate in an HSA if they are enrolled in an HDHP through their employer or have purchased an HDHP on their own.

When Should Nurses Start Saving for Retirement?

It is not too late to start if you are a nurse and have not yet started saving for retirement. You may want to consider speaking with a financial advisor or financial planner to determine how much you need to save to reach your retirement goals and to develop a savings plan that works for you. You may also want to take advantage of any retirement savings plans that are available to you, such as a 401(k) or a pension, as these can be powerful tools for building a secure retirement.

Financial planning can benefit your future by helping you pay off student loan debt from nursing school to helping you understand the total cost of living expenses and pay taxes. Caring for your finances does not have to be a full-time job.

Setting Retirement Saving Goals

Setting a retirement savings goal is important for nurses (and anyone else) because it helps them to ensure that they will have enough money to support themselves in retirement.

By setting a savings goal, nurses can better plan and manage their finances and ensure they are contributing enough money to their retirement accounts to achieve their desired retirement lifestyle.

Here are some steps that a nurse can take to help achieve their retirement savings goal:

Estimate retirement expenses

Start by estimating the amount of money you will need to cover your living expenses in retirement. Consider factors such as housing, healthcare, food, transportation, and entertainment.

Determine retirement income sources

Identify potential sources of retirement income, such as Social Security benefits, pension payments, and retirement savings accounts.

Calculate savings needed

Based on your estimated expenses and expected income, calculate the amount of money you will need to save in order to achieve your retirement goals. Use a retirement savings calculator to help with this calculation.

Start saving early

The earlier you start saving for retirement, the easier it will be to reach your savings goal. Take advantage of retirement savings accounts offered by your employer, such as a 401(k) or 403(b), and contribute as much as you can afford.

Consider additional savings strategies

In addition to retirement savings accounts, consider other savings strategies such as individual retirement accounts (IRAs), health savings accounts (HSAs), and other investment options.

Review and adjust regularly

Review your retirement savings plan regularly and make adjustments as necessary. This can help ensure that you are on track to reach your retirement savings goal.

By setting a retirement savings goal and taking steps to achieve it, nurses can help ensure that they will be financially prepared for retirement and able to enjoy their retirement years with peace of mind. 

How to Choose the Best Retirement Plan for A Nurse, the Pros and cons

Nurses can consider many types of retirement savings products, and the best choice will depend on the individual’s specific circumstances and retirement goals. Some options that nurses may want to consider include:

401(k) plan

Pros: Contributions may be tax-deferred; employer matching may be available.

Cons: Contribution limits may be relatively low; investment options may be limited.

Pension

Pros: Pensions often provide a guaranteed income for life; no investment risk.

Cons: Pensions may not be available from all employers; benefits may be reduced if the pension plan becomes underfunded.

Individual Retirement Account (IRA)

Pros: Contributions may be tax-deductible; many investment options are available.

Cons: Contribution limits may be relatively low; early withdrawals may be subject to penalties.

Health Savings Account (HSA)

Pros: Contributions are tax-deductible; money can be used to pay for a wide range of qualifying medical expenses.

Cons: HSAs may only be available to those enrolled in an HDHP; contribution limits may be relatively low.

How Travel Nurses Can Save For Retirement

Travel nurses can save for retirement in several ways. Here are some tips:

Participate in a 401(k) plan or similar retirement plan offered by your employer

If you work for a travel nursing agency, they may offer a retirement plan that allows you to save for retirement through automatic payroll deductions.

Open an Individual Retirement Account (IRA) and contribute regularly

Traditional IRAs and Roth IRAs are two popular types of IRAs. Consult with a financial advisor to determine the best option for your needs.

Set up a budget

This can help you manage your expenses and prioritize saving for retirement.

Plan your retirement with a professional

Consider working with a financial advisor who can help you create a personalized retirement plan and investment strategy.

Plan for the unexpected.

Ensure you have an emergency fund covering at least 3-6 months of expenses in case of unexpected job loss or other financial hardships.

Avoid debt and pay off any high-interest debt as soon as possible

This can help you reduce your overall financial obligations and save more money for retirement.

Early Retirement for Nurses

Early retirement for nurses is an option that may be available to those who have worked in the profession for a certain number of years and meet specific eligibility criteria.

Some employers offer early retirement packages that may include a combination of financial incentives, such as pension benefits or severance pay, and access to healthcare coverage.

Nurses considering early retirement should carefully evaluate their financial situation and retirement goals and the potential impact on their healthcare benefits and social security eligibility.

It is also important to consult with a financial advisor and/or human resources representative to fully understand the options and implications of early retirement.

Questions Nurses have asked us about retirement planning.

What is the average pension for a nurse?

The average pension for a nurse can vary widely depending on factors such as their years of service, retirement plan, and employer. In the United States, many nurses are covered by pension plans that are offered by their employers, such as defined employee benefit plans or 401(k) plans. According to a 2021 survey by the National Institute on Retirement Security, the median pension benefit for all workers in the US with a defined benefit pension plan was $9,675 per year.

What is the average retirement age for nurses?

The average retirement age for nursing careers varies depending on personal preferences, financial situation, and employer policies. In the United States, the earliest age at which a retiree can begin receiving Social Security retirement benefits is 62. However, the full retirement age ranges from 66 to 67, depending on the nurse’s birth year.

According to a 2019 survey by the National Council of State Boards of Nursing, the average age of RNs who are no longer practicing nursing was 62.4 years. However, this does not necessarily mean that all of these nurses have retired, as some may have left the profession for other reasons, such as illness, family responsibilities, or career changes.

What are some ways for a nurse to accumulate wealth after retirement?

After retirement, nurses can still accumulate wealth and generate income from various sources. Here are some ways that nurses can accumulate wealth after retirement:

  1. Invest in the stock market: Investing in stocks and bonds can be a good way to generate income and build wealth over time. Consider working with a financial advisor to develop an investment strategy that fits your goals and risk tolerance.
  2. Real estate investments: Real estate can be a great way to generate passive income after retirement. This could include rental properties or real estate investment trusts (REITs).
  3. Start a small business: Starting a small business, either full-time or as a side hustle, can be a way to generate income and build wealth after retirement. Consider your skills and interests and look for business opportunities that align with them.
  4. Part-time work: Many retired nurses choose to continue working part-time, either in their nursing profession or in a new field. This can provide a steady source of income and help keep retirement savings intact.
  5. Social Security benefits: Nurses may be eligible for Social Security benefits after retirement. Consider working with a financial planner to help you maximize your Social Security benefits.
  6. Annuities: An annuity can provide a steady stream of income in retirement, similar to a pension. Consider working with a financial advisor to determine if an annuity is right for you.

Remember that accumulating wealth after retirement requires careful planning and consideration of your financial goals and needs. Consider working with a financial advisor to help you develop a retirement income strategy that fits your needs and helps you achieve your financial goals.

Sources:

https://www.laurelroad.com/nurses/how-nurses-can-save-for-retirement/
Nurses Considering Retirement: 4 Things to Think About
The Nurse’s Retirement Guide to Triaging Your Financial Future
https://www.nationalnursesunited.org/101-retirement
https://www.trustedhealth.com/blog/retirement-accounts-for-nurses-simplified

Physician’s Retirement Guide: How Much Will You Need?

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The average physician’s retirement age varies depending on specialty and individual circumstances. According to a survey by the American Medical Association, the average retirement age for physicians in the United States is 65 years old.

However, retirement age can vary widely based on personal financial goals, health status, and lifestyle preferences. Depending on the circumstances, some doctors may retire earlier or later than the average age.

Additionally, retirement age can vary by specialty, with some specialties such as radiology and pathology, having higher early retirement rates. In comparison, others, such as primary care and psychiatry, may have higher rates of later retirement.

When Do You Start Retirement Planning as a Physician?

Physicians should start retirement planning as early as possible, ideally at the beginning of their careers. The earlier they start planning, the more time they must save and invest, and the greater the potential for growth in their retirement portfolio.

Starting early also allows physicians to take advantage of compounding interest, which can significantly increase the value of their investments over time. Even if they are not able to save a large amount initially, starting early and consistently contributing to a retirement account can make a big difference in the long run. It is never too early or too late to start retirement planning, and physicians need to have a solid financial plan in place to ensure a comfortable retirement.

Creating a solid retirement plan can decrease the likelihood of physician burnout. Burnout can be due to exceeding the retirement age because doctors haven’t made enough money for retirement.

Retirement planning for doctors can be complex and multifaceted. Here are some key considerations to keep in mind:

Financial independence: Achieving financial independence is an important goal for many physicians, as it allows them to have more control over their time and lifestyle. This may involve saving aggressively, investing wisely, and minimizing debt.

Disability insurance: Disability insurance is important for physicians, as it can help protect their income and assets if they are unable to work due to an illness or injury. Physicians should carefully evaluate their disability insurance options to ensure that they have appropriate coverage.

Personal finance: Physicians should take an active role in managing their personal finances, including creating a budget, tracking expenses, and paying off debt. They should also work with a financial advisor to develop a comprehensive financial plan that considers their retirement goals and risk tolerance.

Life insurance: Life insurance can provide important financial protection for a physician’s loved ones in the event of their death. Physicians should carefully evaluate their life insurance needs based on their financial obligations and dependents’ needs.

Locum: Locum tenens work can be a good option for physicians who want to continue working on a flexible or part-time basis in retirement. Physicians should carefully evaluate the financial implications of locum work, including tax implications and potential changes to their retirement plans.

What You Need in Your Retirement Savings

There are several things that you need in your retirement savings to ensure a comfortable retirement:

A clear retirement goal: You should have a clear idea of how much you need to save for retirement to maintain your desired standard of living.

A diversified portfolio: Your retirement savings should be invested in a diversified portfolio of assets, including stocks, bonds, and other investments, to reduce risk and maximize potential returns.

Consistent contributions: You should make consistent contributions to your retirement savings over time, ideally starting early in your career and increasing contributions as your income grows.

Tax efficiency: Your retirement savings should be tax-efficient, with investments in tax-deferred accounts such as 401(k)s or IRAs to minimize taxes on investment gains.

Flexibility: Your retirement savings plan should be flexible enough to adapt to changing circumstances, such as unexpected expenses or changes in market conditions where you may lose a lot of money.

By having these elements in your retirement savings plan, you can ensure that you are on track to meet your retirement goals and have a comfortable retirement.

Doctors Guide to Social Security and Medicare.

As physicians approach retirement age, it’s important to understand how Social Security and Medicare can impact their retirement plans. Here are some key points to keep in mind:

Social Security: Physicians can receive Social Security retirement benefits starting at age 62, although delaying retirement until age 70 can result in higher benefit amounts. Your benefit amount is based on your average lifetime earnings, so keeping accurate records of your income is important.

Medicare: Physicians are eligible for Medicare at age 65, regardless of whether they are still working or have retired. Medicare provides health insurance coverage for many medical expenses, although there may be out-of-pocket costs for certain services.

Coordination of benefits: If you plan to continue working after age 65, it’s important to understand how your employer-sponsored health insurance plan will coordinate with Medicare benefits. In some cases, it may make sense to delay enrollment in Medicare to maximize benefits from your employer-sponsored plan.

Means testing: High-income individuals may be subject to means testing for Medicare premiums and Social Security benefits. It’s important to understand the income thresholds for means testing and plan accordingly.

Medicare supplement insurance: Medicare supplement insurance (also known as Medigap) can help cover out-of-pocket costs associated with Medicare. Physicians should consider their individual health needs and financial situation when choosing a Medigap plan.

Physicians should work with a financial advisor or retirement planning professional to create a comprehensive retirement plan that includes Social Security and Medicare considerations.

How Much Do Most Doctors Save For Retirement?

How much physicians need for retirement income can vary depending on their circumstances, including their desired living standard, expected retirement age, and overall health and longevity.

Financial experts generally recommend aiming for a retirement income that is at least 70-80% of their pre-retirement income. To calculate your nest egg, you can use a retirement savings calculator, which considers factors such as current savings, expected rate of return, and expected retirement expenses.

The amount that physicians need to retire versus what they need to have can also vary based on their individual circumstances. In general, physicians should aim to have a retirement nest egg that is large enough to provide a sustainable income stream throughout their retirement years, which may mean saving more than the minimum needed to retire comfortably.

Physicians can use several types of retirement accounts and financial products to save for retirement

401(k) plans: Employer-sponsored retirement plans allow employees to contribute pre-tax dollars to their retirement savings.

Solo 401(k): a retirement savings plan designed for self-employed individuals, including doctors who own their medical practice, that allows for higher contribution limits and greater investment flexibility than other retirement plans.

Individual Retirement Accounts (IRAs): Personal retirement accounts allow individuals to contribute pre-tax dollars to their retirement savings.

Roth IRAs: Personal retirement accounts that allow individuals to contribute after-tax dollars, but withdrawals are tax-free in retirement.

Health Savings Accounts (HSAs): Tax-advantaged savings accounts that allow individuals to save for healthcare expenses in retirement.

Annuities: Insurance products that provide a guaranteed stream of income in retirement.

Mutual funds and ETFs: Investment products that offer diversified portfolios of stocks and bonds.

What can physicians do to maintain income after retirement?

There are several strategies retirees can use to maintain a passive income after retirement:

Work part-time or consult: Many physicians continue working part-time or as consultants in their field after retirement, providing services to clients or patients on a limited basis.

Invest in rental properties: Investing in real estate can provide a steady stream of rental income after retirement, especially if the properties are in areas with high demand for housing.

Start a business: Some physicians choose to start their own business after retirement, leveraging their skills and expertise to offer services in a new capacity.

Invest in stocks or other income-generating assets: Physicians can invest in the stock market or other assets that generate regular income, such as bonds or dividend-paying stocks, to supplement their retirement income.

Purchase an annuity: An annuity is a financial product that provides regular payments over a set period or for your lifetime, which can be a good option for physicians who want a guaranteed income stream in retirement.

Overall, economists believe that annuities can be a useful tool for retirees who are looking for a reliable source of income in retirement and who want to protect their savings from market volatility while still benefiting from tax-deferred growth.

However, not all annuities are created equal, and it’s important to carefully consider the costs, terms, and features of different annuity products before deciding.

What are some things physicians should avoid when it comes to finances?

While malpractice insurance and medical school student loans tax deductions are important considerations for physicians, there are also several common financial mistakes that physicians should try to avoid to maximize their allocation of retirement funds and achieve financial security:

Living beyond their means: Physicians may be tempted to overspend due to high incomes, but living within a reasonable budget and avoiding excessive debt is important.

Failing to save enough: It’s important to save at least 20% of your income for retirement to achieve a comfortable retirement income.

Not diversifying investments: Relying too heavily on one type of investment or asset can increase risk, so it’s important to diversify investments and consider a range of financial products.

Ignoring tax implications: Physicians should be aware of their income tax and the implications of their investments and consider strategies to minimize taxes.

Common questions about retirement planning.

At what age do most doctors retire?

The age at which most doctors retire can vary depending on several factors, such as personal preferences, financial considerations, and specialty demands. However, according to a 2021 survey by the Physicians Foundation, the average retirement age for physicians in the United States is 65.

There are several reasons why doctors may choose to retire at this age or later. One reason is that they may have reached their retirement savings goals and feel financially secure enough to stop working. Another reason is that they may want to enjoy their retirement years and pursue other interests outside of medicine.

Working part-time in retirement can have several benefits for doctors. First, it can provide a sense of purpose and fulfillment, as well as a social network and intellectual stimulation. Second, it can help doctors stay engaged and keep up with the latest medical advances.

Finally, working part-time can provide additional income and help doctors maintain their standard of living during retirement. Overall, working part-time in retirement can provide a balance of continued professional engagement and personal fulfillment while still enjoying retirement benefits.

What is the average net worth of a doctor at retirement?

The average net worth for doctors can vary significantly depending on their specialty, location, and years of experience. According to a 2021 survey by Medscape, the average net worth for physicians in the United States is $2.7 million.

However, this number can range widely, with some doctors having a net worth of less than $500,000 and others having a net worth of over $10 million.

To achieve a high net worth for retirement, doctors must prioritize financial planning and discipline throughout their careers. Here are some steps that doctors can take to build their net worth:

Live below their means: Doctors should avoid overspending and live within their means, even as their incomes rise. This can help them save more money and invest it in the future.

Maximize retirement contributions: Doctors should take advantage of tax-advantaged retirement accounts such as 401(k)s and IRAs and try to max out their contributions each year.

Invest wisely: Doctors should consider investing their money in a diverse range of assets, such as stocks, bonds, and real estate, and work with a financial advisor to develop an investment strategy that suits their goals and risk tolerance.

Pay off debts: Doctors should aim to pay off high-interest debts such as student loans and credit cards as soon as possible, as this can free up more money for investing and savings.

Plan for the unexpected: Doctors should have an emergency fund that covers at least six months of living expenses and consider getting disability insurance to protect against unforeseen circumstances.

By following these steps and being disciplined with their finances, doctors can build a high net worth that provides a comfortable retirement and financial security for the future.

How much do most doctors save for retirement?

The amount most doctors save for retirement can vary significantly based on specialty, income, and lifestyle. However, according to a survey by Medscape, the average amount saved for retirement by physicians in the United States is $2.5 million.

This figure can vary significantly depending on individual circumstances, but it is generally recommended that physicians save at least 20% of their income for retirement to achieve a comfortable retirement income.

A common rule of thumb is the “4% rule,” which suggests that retirees should safely monitor a monthly withdrawal rate of 4% of their investment portfolio that is adjusted for inflation and doesn’t deplete their savings too quickly.

For example, a retiree with a $1 million investment portfolio could withdraw $40,000 annually, adjusted for inflation, to supplement their retirement income.

Here are five factors that doctors should consider when saving for retirement:

  • Retirement goals: Doctors should consider their desired lifestyle in retirement, including estimated expenses for housing, healthcare, travel, and other activities.
  • Current income: Doctors should factor in their current and projected income growth when determining how much to save for retirement.
  • Years to retirement: Doctors should consider their age and the years until retirement when deciding how much to save and how aggressively to invest their retirement savings.
  • Tax implications: Doctors should be aware of the tax implications of their retirement savings and consider tax-advantaged retirement accounts such as 401(k)s and IRAs.
  • Investment strategy: Doctors should have an investment strategy that aligns with their retirement goals and risk tolerance and consider working with a financial advisor to develop an appropriate investment plan.

Can a doctor retire at 55?

A doctor can retire at 55, depending on their circumstances and retirement goals. In the United States, many retirement plans allow individuals to start taking penalty-free withdrawals as early as age 55, so long as they have separated from service with their employer.

However, it’s important to note that retiring at 55 may require careful planning and budgeting to ensure you have enough retirement savings to last for the remainder of your life. Additionally, retiring early may impact your eligibility for certain retirement benefits or pension plans, depending on the terms of your specific plan.

If you are considering retiring at 55, it’s important to consult with a financial advisor or retirement planning professional to discuss your options and develop a comprehensive retirement savings plan that aligns with your individual goals and circumstances.

Sources:

The Complete Guide to Physician Retirement Planning
How Much Do I Need to Retire as a Physician?
https://www.leveragerx.com/blog/physician-retirement-planning-guide/
https://www.ama-assn.org/practice-management/career-development/know-options-secure-your-physician-retirement-income

The White Coat Investor

How Much Money Does a Doctor Need to Retire?

3 Things A Dentist Should Know Before Hitting the Retirement Age

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What is the average age of retirement among dentists?

According to the ADA, the average retirement age among U.S. dentists was 67.9 in 2021; in 2022, it moved closer to 68.2. The average dentist is retiring later in life.

Why do dentists retire so late?

Like many other professionals, dentists often retire later than the general population. There are several reasons why dentists may retire later than others:

Financial considerations: Dentists must complete extensive education and training through dental school, and they often accumulate significant debt before they start practicing. Additionally, many dentists are private practice owners, which requires a significant investment of time and money. As a result, dentists may need to work longer to pay off their debts and accumulate enough savings to retire comfortably.

Passion for the profession: Dentistry can be very rewarding, and many dentists enjoy helping their patients and providing quality care. Some dentists may continue practicing because they enjoy their full-time work and find it fulfilling.

Longer life expectancy: With advances in medical technology and improved healthcare, people live longer than ever. Dentists may need to work longer to support themselves financially during their retirement years.

Generational differences: Compared to previous generations, many younger dentists may have a different perspective on retirement. Some younger dentists may prioritize work-life balance and may not want to work as long or hard as their predecessors.

Overall, several factors contribute to why dentists may retire later in life. However, it’s important to note that retirement decisions are personal and depend on individual circumstances and preferences.

3 Things You Should Know Before You Retire

As a dentist, you should know several important things before you retire. Here are three key things to keep in mind:

  1. Your retirement income needs: It’s essential to have a good understanding of your retirement income needs so that you can plan your retirement finances accordingly. This includes estimating your living expenses, healthcare costs, and any other expenses you may have in retirement. Knowing your retirement income needs can help you determine how much you need to save before you retire and how much income you’ll need from your retirement savings.
  2. Your retirement savings: Dentists must save aggressively to ensure a comfortable retirement like other professionals. Before you retire, it’s important to clearly understand your retirement savings, including your retirement accounts, investment portfolio, and other assets. This will help you determine whether you have enough savings to retire comfortably or need to continue saving.
  3. Your post-retirement goals: Retirement is an opportunity to pursue your passions, travel, and spend time with family and friends. As a dentist, it’s important to consider what you want to do after retirement and how you plan to spend your time. This can help you plan your finances accordingly and maximize your retirement years.

By understanding your retirement income needs, retirement savings, and post-retirement goals, you can better plan for a comfortable and fulfilling retirement as a dentist.

How much should a dentist save for retirement?

The amount a dentist should save for retirement depends on several factors, such as age, expected retirement age, lifestyle, and retirement goals.

For example, if a clinician, such as a DDS or DMD, is looking for an early retirement plan, he or she would need to. As a general guideline, financial experts suggest that individuals save enough to replace at least 70% to 80% of their pre-retirement income.

For dentists, this may require a higher savings rate due to the cost of education and the start-up costs associated with setting up a practice. Additionally, dentists may need to consider the cost of maintaining a certain lifestyle in retirement, including travel, hobbies, and healthcare.

According to a survey by the American Dental Association, dentists over 65 have a median retirement savings of approximately $600,000. However, the amount needed for retirement varies based on individual circumstances, such as anticipated retirement lifestyle, anticipated healthcare costs, and expected Social Security benefits.

To determine a personalized retirement savings goal, it’s important for dentists to work with a financial advisor who can provide guidance and recommendations based on their specific financial situation and retirement goals. A financial advisor can help dentists develop a retirement savings plan that considers factors such as savings rate, investment strategy, and retirement income sources.

What are the benefits of a retirement plan?

A financial plan is essential for dentists because it helps them achieve their financial goals, prepare for unexpected events, and enjoy a comfortable and secure retirement. It can also help them make informed financial decisions, manage their finances more effectively, and avoid costly mistakes.

Financial security: A retirement plan provides a way to save money for retirement, which can help ensure financial security in later years. With a retirement plan, individuals can contribute a portion of their income to a tax-advantaged account, which can grow over time and provide a source of income during retirement.

Tax benefits: Retirement plans offer tax benefits that can help individuals save money on taxes. Contributions to traditional retirement plans are typically tax-deductible, which can reduce taxable income in the current year. Additionally, investment gains within a retirement plan are tax-deferred, which means that taxes are not due until the funds are withdrawn in retirement.

Employer contributions: Many employers offer retirement plans as a benefit to employees, and some also make contributions to these plans on behalf of their employees. These contributions can help boost retirement savings and provide additional financial security in retirement.

Investment options: Retirement plans offer a range of investment options, including stocks, bonds, and mutual funds. This allows individuals to diversify their investments and potentially earn higher returns over time.

Retirement income: Retirement plans provide a way to convert savings into retirement income, which can help ensure a steady stream of income during retirement. Depending on the type of retirement plan, individuals may have several options for receiving retirement income, such as annuities or systematic withdrawals. 

Overall, working with a financial professional can offer a range of benefits to a dentist, from creating a personalized retirement plan to providing ongoing support and advice. By working with a financial planner, a dentist can achieve their financial goals more efficiently and effectively and enjoy a comfortable and secure retirement.

What is a dentist’s pension?

A dentist pension is a retirement plan designed specifically for dentists and other healthcare professionals. Dentists can have a pension plan through their employer, such as a dental practice or hospital, or they can set up their pension plan as self-employed individuals.

A pension plan allows dentists to save for retirement and receive a regular income stream in retirement based on their years of service and earnings history. Contributions to a pension plan may be tax-deductible, and earnings on contributions are tax-deferred until withdrawn in retirement.

A dentist can create their own pension plan through a variety of options, including:

  1. Individual 401(k) plan: A self-employed dentist who owns their own practice can set up an individual 401(k) plan. This type of plan allows the dentist to contribute as both an employer and an employee and to potentially contribute up to $59,000 per year (as of 2021), depending on their income and age.
  2. Simplified Employee Pension (SEP) plan: A dentist who is self-employed or who owns their own practice can set up a SEP plan. This type of plan allows the dentist to contribute up to 25% of their net self-employment income (up to $58,000 in 2021) to the plan.
  3. Defined Benefit Plan: A dentist can also set up a defined benefit plan, which is a traditional pension plan that provides a guaranteed retirement income based on the dentist’s years of service and earnings history. This type of plan is more complex to set up and administer than a 401(k) or SEP plan, but it may be a good option for dentists who want to maximize their retirement savings and have a reliable income stream in retirement.

To create their own pension plan, a dentist will need to work with a financial advisor, accountant, or pension specialist to determine which plan is best for their individual situation and to ensure the plan is set up and administered correctly.

Questions commonly asked by dentists.

Asking retirement questions is important for dentists as it helps them plan and prepare for their future financial needs, ensuring a comfortable and secure retirement. It also helps dentists identify potential retirement planning gaps and take proactive steps to address them. Here are some commonly asked questions by dentists about retirement: 

How much do I need to save for retirement?

Dentists often ask this question to ensure they have enough savings to maintain their lifestyle in retirement. Knowing how much to save depends on factors such as retirement goals, current income, and anticipated expenses in retirement.

What are my retirement savings options?

Dentists may ask this question to explore retirement savings options such as 401(k) plans, IRAs, and pensions. Understanding the options available can help dentists choose the best plan to meet their needs.

How can I maximize my retirement savings?

Dentists may ask this question because they want to ensure they are saving as much as possible for retirement. Understanding how to maximize contributions to retirement plans and take advantage of tax incentives can help dentists build a larger retirement nest egg.

What should I do if I haven’t saved enough for retirement?

Dentists may ask this question if they have not saved enough for retirement or if they are starting to save later in life. It’s important to know that it’s never too late to start saving and that there are options available such as working longer, reducing expenses in retirement, and exploring different retirement income sources.

How can I ensure my retirement savings last throughout my lifetime?

Dentists may ask this question because they want to ensure their retirement savings last as long as they do. Understanding options such as annuities, Social Security, and portfolio diversification can help dentists ensure their savings provide a reliable income stream in retirement.

These are just a few questions that dentists may have about retirement. Retirement planning can be complex, and dentists need to seek the advice of a financial advisor who can help them navigate their options and make informed decisions about their retirement savings and income.

Working with an advisor can help alleviate the process of beginning financial planning, help sort through insurance companies, and set up IRA retirement accounts.

Financial professionals like our staff at WealthCare Financial are geared towards the medical professional demographic due to the understanding of the industry to ensure your financial well-being.

We provide Advisors, Planners, and CPAs to help track your savings accounts and whittle down student loan debt. You must select a team that will put you first and cares for your life after retirement and your financial goals.

How much does a dentist make per year?

The amount of money a dentist makes per year can vary depending on several factors, such as location, specialty, years of experience, and type of employment. The median annual wage for dentists in the United States is around $164,010.

According to the Bureau of Labor Statistics (BLS), the median annual wage for dentists in the United States as of May 2020 was $164,010. However, this figure can range from around $76,000 for the lowest 10% of earners to over $208,000 for the highest 10%.

Dentists who specialize in specific areas may earn more than others. For example, oral and maxillofacial surgeons are among the highest-paid dental specialists, with a median annual wage of $237,570 as of May 2020. Pediatric dentists also earn a relatively high salary, with a median annual wage of $173,370.

In addition to location and specialty, years of experience and type of employment can also impact a dentist’s salary. Dentists who have been in practice for a longer period may earn more than those who are just starting out. Similarly, dentists who are self-employed or own their own practices may earn more than those who work for someone else.

Overall, the salary of a dentist can vary widely depending on several factors, but according to the BLS, the median annual wage for dentists in the United States is around $164,010.

What do dentists do after they retire?

After retiring, dentists may choose to accumulate wealth by investing in real estate or the stock market. Some may travel or pursue hobbies and interests, work as consultants, spend time with family and friends, or combine these activities. Others may volunteer their time and expertise to dental clinics or charity organizations. Some may even consider working part-time for their dental practice.

There is no one answer to what dentists like to do after they retire because it depends on their interests and priorities. Some dentists may find fulfillment in pursuing philanthropic endeavors, while others may prefer to focus on their hobbies or enjoy a slower pace of life. Ultimately, what dentists like to do after retirement is a matter of individual choice and preference. 

Sources:

https://dentistadvisors.com/education-library/podcast/dentist_retirement_statistic/
https://www.royal-wealth.com/blog/what-dentists-should-knowabout-retirement-planning
https://www.dentaleconomics.com/money/article/14214867/why-dentists-retire-7-years-later-than-the-average-american-and-how-to-fix-that
Retirement Age Dentistry- What Changes Should You Expect
How Dentists Retire By 50
https://www.ada.org/resources/practice/legal-and-regulatory/dentist-guide-to-the-law

How To Choose The Best Life Insurance Policy for Doctors

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Do Doctors Need a Life Insurance Policy?

Whether or not a doctor needs a life insurance policy depends on their individual circumstances, financial goals, and family situation.

Life insurance is designed to provide financial protection in the form of a benefit amount to loved ones in the event of the policyholder’s death. If a doctor has dependents, such as a spouse or children, who rely on their income to cover living expenses, a life insurance policy can help ensure that their loved ones are provided for financially if they pass away.

Additionally, if a doctor has outstanding debts, such as a mortgage or student loans, a life insurance policy can help ensure that those debts are paid off if they pass away. This can help prevent loved ones from being burdened with those financial obligations.

However, if a doctor does not have dependents or significant debts, they may not need a life insurance policy. It is important to carefully consider your individual financial situation and goals when deciding whether or not to purchase life insurance. A financial advisor can provide guidance on the appropriate amount and type of life insurance coverage to meet your needs.

Whole Life Insurance vs Term Life Insurance

Whole life insurance and term life insurance are two types of life insurance policies that provide financial protection to your loved ones in the event of your death. There are some key differences between whole life insurance and term life insurance that you should consider when deciding which type of policy is right for you.

Whole life insurance, also known as permanent life insurance, provides coverage for your entire life. This type of policy typically includes an investment component, known as the cash value, which accumulates over time and can be used to pay premiums or borrowed against. Whole life insurance tends to be more expensive than term life insurance, but it also provides more comprehensive coverage and long-term financial security.

Term life insurance, on the other hand, provides coverage for a specific period of time, typically 10, 20, or 30 years. This type of policy does not have a cash value component and is typically less expensive than whole life insurance. However, it does not provide the same level of long-term financial security as whole life insurance.

When deciding between whole life insurance and term life insurance, it’s important to consider your financial goals, budget, and long-term financial needs. You may want to consider speaking with a financial advisor or insurance broker to help you understand the pros and cons of each type of policy and to determine which one is the best fit for you. How much life insurance does a doctor need?

How much does a life insurance policy for physicians cost?

The cost of a life insurance policy for physicians will depend on several factors, including the physician’s age, health, lifestyle, and coverage amount. Generally, life insurance premiums are higher for individuals who are older, have pre-existing health conditions, or engage in high-risk activities. On the other hand, premiums may be lower for younger, healthier individuals with lower coverage amounts.

What are the best life insurance companies for doctors?

Several life insurance companies specialize in providing coverage for doctors. Some of the best life insurance companies for doctors are:

  1. Allianz: This company has a strong financial rating and offers a variety of life insurance options specifically tailored to the needs of doctors.
  2. MassMutual: MassMutual is a well-established company with a long history of providing coverage to physicians. They offer competitive rates and customizable coverage options.
  3. Ameritas: Ameritas offers flexible underwriting guidelines for physicians and has a reputation for excellent customer service.
  4. Principal: Principal is a highly-rated life insurance company that offers a variety of coverage options for physicians, including disability insurance and long-term care insurance.
  5. Guardian Life: Guardian Life has a long history of providing insurance to healthcare professionals, including doctors. They offer a variety of coverage options and competitive rates.

When choosing a life insurance company, it’s important to consider financial strength, customer service, and the range of coverage options available. It’s also a good idea to shop around and compare rates and policies from multiple companies before deciding.

Where should a physician purchase a life insurance policy?

Physicians should purchase life insurance from a reputable insurance company specializing in providing healthcare professionals coverage. There are several reasons why purchasing life insurance products from such a company can be beneficial:

  1. Tailored coverage: Insurance companies specializing in providing coverage to healthcare professionals understand physicians’ unique risks and needs. As a result, they offer tailored coverage options that are designed specifically for physicians.
  2. Competitive rates: Insurance companies that specialize in providing coverage to healthcare professionals often offer competitive rates because they deeply understand the risks and costs associated with insuring doctors.
  3. Financial strength: It’s important to purchase life insurance from a financially stable and reliable insurance company that will be able to pay out claims in the event of your death. Insurance companies that specialize in providing coverage to healthcare professionals tend to have the best rating.
  4. Customer service: Insurance companies that specialize in providing coverage to healthcare professionals often have customer service representatives who are knowledgeable about the needs of physicians and can provide helpful advice and guidance.

In terms of where physicians should purchase life insurance, there are several options. They can work with an independent insurance agent who can help them compare policies from multiple insurance companies, or they can purchase insurance directly from an insurance company specializing in providing coverage to healthcare professionals. It’s essential to do research and compare options before making a decision.

What Types of Term Life Insurance are available?

Several types of term life insurance policies are available, each with unique features and benefits. The most common types of term life insurance include:

  1. Level Term Life Insurance: This type of term life insurance provides coverage for a specified period, such as 10, 20, or 30 years, and the premium stays the same throughout the term of the policy. Level term life insurance is often the most affordable type of life insurance, making it a popular choice for many individuals and families.
  2. Decreasing Term Life Insurance: With decreasing term life insurance, the coverage amount decreases over the term of the policy while the premium stays the same. This type of policy is often used to cover a specific debt, such as a mortgage or loan, that decreases over time.
  3. Renewable Term Life Insurance: Renewable term life insurance allows policyholders to renew their policy at the end of the term without having to undergo a medical exam or provide evidence of insurability. Premiums for renewable term policies tend to increase with age.
  4. Convertible Term Life Insurance: Convertible term life insurance allows policyholders to convert their term life insurance policy to a permanent life insurance policy, such as a whole life or universal life policy, without having to undergo a medical exam or provide evidence of insurability.
  5. Return of Premium Term Life Insurance: Return of premium term life insurance provides a death benefit for a specified period, like traditional term life insurance, but at the end of the term, the policyholder receives a refund of the premiums paid if they have not passed away. This type of policy can be more expensive than traditional term life insurance.

When choosing a term life insurance policy, it’s important to consider factors such as the length of the term, the coverage amount, and the cost of the premiums. Working with an independent insurance agent to compare policies from multiple insurance companies to find the best coverage for your needs and budget is also a good idea.

Accelerated Death Benefits

The accelerated death benefit is a feature often included in life insurance policies that allows the policyholder to receive a portion of the death benefit before they pass away if they are diagnosed with a terminal illness or have a qualifying medical condition.

If a policyholder is diagnosed with a terminal illness, they may be eligible to receive a portion of their death benefit while they are still alive. The amount that can be accelerated is typically a percentage of the death benefit, such as 50% or 75%. The policyholder can use the accelerated death benefit payment for any purpose, such as medical expenses, hospice care, or other living expenses.

To qualify for an accelerated death benefit payment, the policyholder must typically provide medical evidence that they have a terminal illness or a qualifying medical condition. The specific criteria for eligibility may vary depending on the insurance company and the terms of the policy.

It’s important to note that the accelerated death benefit payment amount will be deducted from the total death benefit paid to the policy’s beneficiaries upon the death of the insured. Additionally, the accelerated death benefit payment may be subject to taxes, so it’s important to consult with a tax professional to understand the tax implications of this type of payment.

The accelerated death benefit can provide financial relief to policyholders who are facing a terminal illness or other serious medical condition and can help to ensure that they can maintain their quality of life during their final months.

What life insurance riders are best for doctors?

Doctors may consider adding one or more riders to their life insurance policies to customize their coverage and provide additional benefits. Some of the most common riders that may be beneficial for doctors include:

  1. Disability Income Rider: This rider provides an additional benefit if the policyholder becomes totally disabled and is unable to work. The rider typically pays a monthly benefit for a specified period, such as two or five years, to help cover lost income during the disability.
  2. Waiver of Premium Rider: This rider waives the premiums on the policy if the policyholder becomes totally disabled and is unable to work. The policy remains in force, but the policyholder does not have to pay premiums during the disability.
  3. Critical Illness Rider: This rider provides a lump sum payment if the policyholder is diagnosed with a critical illness, such as cancer or a heart attack. The rider typically covers a specific list of illnesses and provides a benefit in addition to the death benefit.
  4. Accidental Death Benefit Rider: This rider provides an additional benefit if the policyholder dies as a result of an accident. The rider typically pays a benefit in addition to the death benefit and may provide a higher benefit amount if the policyholder dies in a covered accident.
  5. Child Rider: This rider provides coverage for the policyholder’s children, typically for a specified amount of coverage per child. The rider may provide coverage for a specific period, such as until the child reaches a certain age, or may be converted to a separate policy for the child at a later time.

The best riders for doctors will depend on their individual needs and circumstances. For example, a doctor who is concerned about the financial impact of a disability may find the Disability Income Rider or Waiver of Premium Rider to be most beneficial, while a doctor who is concerned about a critical illness may find the Critical Illness Rider to be most valuable. It’s important to review the options and costs of each rider with an insurance professional to determine which riders are best for your needs and budget.

What should doctors expect when purchasing a life insurance policy?

As a doctor, when purchasing a life insurance policy, you can expect the following process:

  1. Determine your coverage needs: Consider the amount of coverage you need to protect your loved ones in the event of your death and any other financial obligations you may have. You can choose from policies like a 20-year term, a permanent life insurance policy, or a whole life policy; depending on the premium, the insurance rates may vary, and the option for higher premiums. Also, look for disability insurance for coverage in case you can no longer perform your duties as a physician.
  2. Shop around: Compare life insurance quotes from multiple insurance carriers to find the best policy for your needs and budget the life insurance cost. AM Best health insurance companies, such as the Mutual of Omaha, are approved and usually provide the best coverage for all life insurance needs.
  3. Consider the underwriting process: Underwriting is how insurance companies evaluate your risk and determine your premium. Your premiums may be higher if you have pre-existing medical conditions or engage in risky activities. Choose a policy offering fair underwriting practices and coverage that meets your needs.
  4. Complete an application: Most life insurance companies will require you to complete an application, which may include questions about your health, lifestyle, and financial history. The application process may vary. Some no-exam life insurance policies exist, and you will only have to answer a medical questionnaire.
  5. Undergo a medical exam: Some life insurance policies may require a medical exam to assess your health and risk profile. The exam may include a blood and urine test and a physical exam. They want to review your current medical conditions and medical history to determine your eligibility.
  6. Wait for approval: The insurer will review your application and medical exam results to determine whether to approve your policy and at what rate.
  7. Accept the policy by paying the premium: Once your policy is approved, you will need to pay the premium to activate the coverage of your life insurance plan.

It’s important to note that the process of purchasing a life insurance policy may vary depending on the insurance company and the type of policy you are purchasing.

Additionally, some policies may have specific requirements or limitations for doctors, such as medical specialties excluded from coverage or higher premiums for certain medical conditions. It’s essential to review the policy details carefully and ask any questions you may have before making a final decision.

Common Questions Doctors Ask About Life Insurance Policies

Doctors may have a range of questions when considering a life insurance policy. Some of the most common questions they ask and the reasons behind them include:

How much life insurance coverage do I need?

This is an important question, as doctors often have higher income levels and financial obligations than average people. They may want to ensure that their families are taken care of in the event of their unexpected death.

What type of life insurance policy is best for me and my family?

Doctors may want to know the differences between term life insurance and permanent life insurance and which type would provide the best coverage for their needs and budget.

How much will the premiums cost, and can I afford them?

Doctors may want to budget for life insurance premiums as a recurring expense and want to ensure they are getting the best value for their money.

Will I need to undergo a medical exam, and if so, what does it involve?

Doctors may be concerned about the medical exam required for coverage, especially if they have a preexisting medical condition.

How long will it take to get approved for coverage?

Doctors may want to know how long the approval process takes and when their coverage will begin.

What happens if I miss a premium payment or want to cancel my policy?

Doctors may want to understand the consequences of missing a premium payment or canceling their policy early.

Will my pre-existing medical conditions or family health history affect my ability to obtain coverage or the cost of my premiums?

Doctors may have a family history of certain medical conditions and may be concerned about how this could impact their ability to obtain coverage or the cost of their premiums.

What happens if I die during the contestability period, and will my beneficiaries receive the full death benefit?

Doctors may want to know how their beneficiaries will receive the death benefit and whether any restrictions or limitations apply.

Can I add additional coverage or riders to my policy in the future, and how will this affect my premiums?

Doctors may want to know if they can add additional coverage or riders to their policy as their needs change.

How will my beneficiaries receive the death benefit payout, and what happens if I do not have a designated beneficiary?

Doctors may want to ensure that their beneficiaries receive the death benefit in a timely and efficient manner and may want to understand what happens if they do not designate a beneficiary.

These are just a few of doctors’ many questions when considering a life insurance policy. It’s essential to research, compare policies and premiums, and consult with an insurance agent or broker to find the best coverage for your needs.

What type of life insurance does not require a medical exam?

A few types of life insurance policies do not require a medical exam. These policies are typically called “no-exam” or “non-medical” life insurance policies. The most common types of no-exam life insurance policies include:

  1. Simplified Issue Life Insurance: This type of policy typically requires the applicant to answer a series of health-related questions. The insurer may also check the applicant’s medical history and prescription drug records. The coverage amount for these policies is usually lower compared to fully underwritten policies, and the premiums may be higher.
  2. Guaranteed Issue Life Insurance: This type of policy is designed for applicants who may have difficulty obtaining coverage due to health issues or other factors such as final expenses. Guaranteed-issue policies do not require medical underwriting and are typically available to anyone who meets the age requirements. These policies usually have lower coverage amounts and higher premiums than other life insurance types.

These types of policies do not require a medical exam because they are designed to offer a simplified and streamlined underwriting process. Instead of requiring a full medical exam and detailed medical history, these policies rely on a series of health-related questions or no questions at all in the case of guaranteed issue policies.

This makes the application process faster and easier, which can benefit people who need coverage quickly or have a medical condition that may prevent them from obtaining traditional coverage.

However, it’s important to note that these policies may have limitations or exclusions based on the applicant’s health history, and the premiums may be higher compared to fully underwritten policies.

Additionally, the coverage amounts may be lower compared to policies that require a medical exam. It’s important to review the policy details and costs carefully before purchasing a no-exam life insurance policy.

What is the most expensive life insurance policy?

There is no one-size-fits-all answer to the question of what is the most expensive life insurance policy, as the cost of a policy depends on a variety of factors, such as the amount of coverage, the age and health of the insured, and the type of policy. However, some types of life insurance policies are generally more expensive than others.

One example of an expensive life insurance policy is a guaranteed universal life insurance policy. This type of policy provides coverage for the insured’s entire lifetime and offers a guaranteed death benefit, regardless of how long the insured lives. Because of this, the premiums for guaranteed universal life insurance policies are often higher than other types of life insurance policies.

Another factor that can make a life insurance policy more expensive is the inclusion of riders or additional features. For example, policies that include long-term care riders, disability income riders, or critical illness riders may have higher premiums than policies without these riders.

The cost of a life insurance policy also depends on the risk level of the insured. If the insured has a higher risk of death due to factors such as age or health conditions, the premiums may be higher to reflect this increased risk.

Overall, the most expensive life insurance policy will depend on the individual’s unique circumstances and the type of policy they choose. It’s important to compare policies from multiple insurance companies and carefully review the policy details to ensure you get the best coverage for your needs and budget.

What is the average premium for a life insurance policy?

The average premium for a life insurance policy varies depending on several factors, such as the type of policy, the coverage amount, the age and health of the insured, and the insurer’s underwriting guidelines. Generally, permanent life insurance policies tend to have higher premiums than term life insurance policies due to their lifetime coverage and cash value accumulation features.

According to a study by Policy Genius, the average monthly premium for a term life insurance policy is around $21 for a 35-year-old male and $19 for a 35-year-old female, both non-smokers, with a 20-year term and $500,000 in coverage. For a 45-year-old male and female, the average monthly premium for a similar policy increases to $41 and $34, respectively.

For permanent life insurance policies, the premiums can vary widely depending on the type of policy, the coverage amount, and the insured’s age and health. According to the American Association for Long-Term Care Insurance, the average annual premium for a male aged 55 years and in good health for a $100,000 whole life insurance policy is around $1,925, while for a female of the same age and health, the average annual premium is around $1,614.

It’s important to note that these are just average premiums and that the actual cost of a life insurance policy can vary widely based on individual factors. To get a more accurate estimate of the cost of a life insurance policy, it’s best to consult with an insurance agent.

What type of life insurance is the cheapest?

Term life insurance is typically the cheapest type of life insurance in terms of cost. This is because term life insurance provides coverage for a set period of time, such as 10, 20, or 30 years, and does not include a cash value component like permanent life insurance. As a result, term policies generally have lower premiums than permanent policies.

The cost of term life insurance can vary depending on several factors, such as the coverage amount, the length of the policy term, the age and health of the insured, and the insurer’s underwriting guidelines. Younger and healthier individuals generally have lower premiums compared to older individuals or those with preexisting health conditions.

It’s important to note that while term life insurance may be the cheapest type of life insurance in terms of cost, it may not always be the best option for everyone. For example, if you need lifelong coverage or want a policy that includes a cash value component, a permanent life insurance policy may be more suitable, even though it may have higher premiums.

Are there any life insurance companies that will insure a person with a preexisting condition?

Life insurance companies will insure a person with a preexisting condition. However, the availability and cost of coverage may vary depending on the specific condition and its severity. Some conditions may be considered a higher risk, which could result in higher premiums or difficulty obtaining coverage.

Some life insurance companies specialize in offering coverage to people with preexisting conditions, while others may require a medical exam or additional underwriting to determine the level of risk. Researching insurance companies and comparing policies is important to find the best coverage for your needs.

The types of life insurance that may be best for someone with a preexisting condition will depend on the individual’s specific situation and needs. Here are some options to consider:

  1. Guaranteed issue life insurance: This policy is available to anyone, regardless of health history or preexisting conditions. However, the coverage amounts are typically lower, and the premiums are often higher than other life insurance types.
  2. Simplified issue life insurance: This type of policy requires applicants to answer a series of health-related questions but typically does not require a medical exam. The coverage amounts may be higher than guaranteed issue policies, and the premiums may be lower.
  3. Term life insurance: Term life insurance policies offer coverage for a specific period of time, such as 10, 20, or 30 years. A term policy may be a good option if the preexisting condition is stable and not expected to worsen over time.
  4. Permanent life insurance: Permanent life insurance policies offer coverage for the insured’s entire lifetime and include a cash value component. These policies may be more expensive than term policies but can provide long-term coverage and financial benefits.

It’s important to consult with an insurance agent or broker to discuss the options available and find the best policy for your specific needs and circumstances.

Sources:

Life Insurance for Physicians: How to Decide on the Best Policy
https://www.guardianlife.com/life-insurance/doctors-and-physicians
https://www.whitecoatinvestor.com/how-much-life-insurance-do-i-need/
https://financialresidency.com/term-life-insurance-for-doctors/
Your Guide To Life Insurance

How To Choose the Best Disability Insurance for Dentists

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Why Do Dentists Need Disability Insurance?

Dental professionals need disability insurance to protect their income if they cannot work due to a disability. This disability coverage provides financial support to help cover the costs of living and maintaining a practice if a dentist cannot work because of an illness or injury.

This type of insurance coverage also gives practicing physician peace of mind knowing he or she has a disability insurance plan to protect them from any unfortunate medical condition, deeming them professional in continuing their dental practice.

A disability benefit can help ensure that dentists can continue to meet their financial obligations and maintain their standard of living even if they are unable to work.

How Much Does Disability Insurance Cost for A Dentist?

The cost of disability income insurance for a dentist will vary depending on several factors, including the medical professional’s age, health, and the type of coverage they choose. In general, disability insurance premiums are based on the income the dentist wants to protect and the length of time they want the coverage to last.

As such, the cost of disability insurance for a dentist can range from a few hundred dollars per year for a basic policy to several thousand dollars per year for a more comprehensive policy.

It is important for dentists to carefully consider their needs and compare quotes from multiple insurance providers to find the best policy at a cost that fits their budget.

Important Disability Riders for Dentists

Riders are additional provisions that can be added to a disability insurance policy to provide more specific or expanded coverage. They are essential to dentists because they can help tailor the policy to their particular needs and provide additional protection in the event of a disability. For example, a “future increase option” rider can allow dentists to increase their coverage if their income increases. In contrast, a “cost of living adjustment” rider can provide for expansions in the benefits paid out to keep pace with inflation. For all medical professionals, including dentists, we recommend the specialty-specific own occupation rider. This will ensure that if they cannot perform their specific occupation, they will be covered by the policy. By choosing suitable riders, dentists can ensure that their disability insurance policy provides the protection they need.

Choosing The Best Disability Insurance

When choosing the best disability insurance, it is crucial to consider factors such as the definition of disability, the waiting period before benefits begin, the length of coverage, and the monthly benefit amount.

It is also essential to compare quotes from multiple insurers and carefully review the policy terms and conditions. It’s essential to consult with an independent insurance advisor because, depending on your occupational specialty, they will help you best determine the insurer that specializes in the coverage you’re looking for.

Even though most recommended insurers like Guardian, The Standard, Ameritas, and Principal have the best options for medical professionals, prices can significantly vary from each insurer based on your specialty.

True “own-occupation disability ” coverage explained.

An own-occupation policy is a type of disability insurance that provides benefits to a policyholder if they cannot perform the duties described by the occupation definition of dentistry.

Under an own occupation policy, the policyholder is considered disabled if they are unable to perform the material and substantial duties of their own occupation. This means that if the medical professional cannot perform the duties of their field due to a disability but can work in a different occupation, such as teaching or consulting, they would still be eligible for benefits under an own occupation policy.

This type of policy typically provides more comprehensive coverage and greater flexibility than other types of disability insurance policies, which may require policyholders to be completely unable to work in any occupation to receive benefits.

However, own-occupation policies may be more expensive and have more stringent eligibility requirements. Some insurance companies require a medical exam to determine the applicant’s eligibility. It is essential to carefully review the policy terms and conditions to understand the specific coverage provided.

Typical questions asked about disability insurance for dentists

What are the exclusions for disability insurance policies for dentists?

Typical exclusions for disability insurance policies may include pre-existing conditions, self-inflicted injuries, and disabilities resulting from drug or alcohol abuse. It is important to carefully review the policy terms and conditions to understand the specific exclusions.

What is residual disability coverage?

Residual disability coverage provides benefits when a dentist can work but has a partial disability that results in a loss of income. The benefit amount is typically based on the percentage of income loss due to the disability.

What is total disability coverage?

Total disability coverage provides benefits when a dentist cannot work due to a disability. The benefit amount is typically a percentage of the dentist’s income before the disability.

What is a purchase option?

A purchase option, also known as a rider or endorsement, allows a dentist to increase the amount of coverage on their disability insurance policy without going through the underwriting process again. This can be useful if the dentist experiences an increase in income or wants to ensure sufficient coverage.

What is a major risk for dentists?

One significant risk for dentists is the potential for a disabling injury or illness. In dentistry, these professionals often perform physically demanding work that requires them to use their hands and arms extensively.

This can put them at risk for musculoskeletal disorders and other conditions impacting their workability. In addition, dentists may be at risk for exposure to infectious diseases and other health hazards. These risks can lead to a loss of income and potential financial hardship for dentists if they cannot work.

What are the partial benefits?

Partial benefits are provided when a dentist can work part-time but have a loss of income due to a disability. The benefit amount is typically a percentage of the dentist’s income before the disability, based on the percentage of time worked.

What are the challenges that may appear when applying for disability insurance?

Obtaining disability insurance when you have significant student loan debt can be challenging due to several reasons:

Increased financial risk: Insurers may view individuals with significant student loan debt as having a higher financial risk. Due to high student loan payments, they may have less disposable income available to pay for the insurance premiums.

Debt-to-income ratio: Insurers may consider an individual’s debt-to-income ratio when evaluating their eligibility for disability insurance. If the ratio is high, the insurer may consider the individual at a higher risk of financial difficulty and may be more hesitant to offer coverage.

Medical underwriting: Insurers may require medical underwriting, which can be more challenging for individuals with student loan debt who may have pre-existing medical conditions that can impact their eligibility for coverage.

Higher premiums: Individuals with significant student loan debt may be required to pay higher premiums for disability insurance, as insurers may view them as a higher financial risk.

Limited coverage options: Individuals with student loan debt may have limited options for disability insurance coverage, as some insurers may not offer coverage to individuals with high debt levels.

It is essential to work with an experienced insurance agent or broker who can help navigate these challenges and find the best disability insurance options for individuals with student loan debt.

What are the five options for disability insurance?

  • Short-term disability insurance: This type of insurance provides benefits for a limited period (usually less than six months) if the policyholder cannot work due to a disability.
  • Long-term disability insurance: This type of insurance provides benefits for a longer period of time (usually several years) if the policyholder is unable to work due to a disability.
  • Group disability insurance: This type of insurance is provided through an employer and covers employees.
  • Individual disability insurance: The policyholder purchases this type of insurance directly from an insurance provider.
  • Business overhead expense insurance: This type of insurance covers a business’s fixed expenses if the owner cannot work due to a disability.

What is covered by disability insurance?

Disability insurance typically covers a portion of the policyholder’s income if they cannot work due to a disability. This can include benefits for both total and partial disabilities, depending on the policy. Disability insurance may also cover certain expenses, such as rehabilitation or training for a new occupation, if the policyholder cannot return to their previous job.

In addition, some policies may include riders that provide additional coverage for specific situations, such as the cost of hiring a replacement worker or maintaining a business if the owner cannot work.

What is the waiting period for disability insurance?

The waiting period for disability insurance, also known as the elimination period, is the time that must pass before the policyholder becomes eligible to receive benefits. The waiting period typically ranges from 30 to 90 days, although some policies may have a longer or shorter waiting period.

The purpose of the waiting period is to provide a period for the policyholder to recover from a short-term illness or injury without needing benefits. The length of the waiting period can impact the cost of the policy, with longer waiting periods typically resulting in lower premiums.

How long does a disability insurance policy last?

The length of time that a disability insurance policy lasts, also known as the benefit period, will vary depending on the policy. Some policies may provide benefits for a limited period, such as two or five years, while others may provide benefits until the policyholder reaches a certain age, such as 65.

In general, the longer the benefit period, the higher the premiums for the policy will be. It is essential for policyholders to carefully consider their needs and choose a benefit period that provides the right level of protection at a cost that fits their budget.

What is the difference between short-term and long-term disability insurance?

Short-term and long-term disability insurance are two types of insurance products that provide financial support if the policyholder cannot work due to a disability. The main difference between the two is the length of time that benefits are provided.

Short-term disability insurance provides benefits for a limited period, usually under six months, while long-term disability insurance provides benefits for a more extended period, typically several years.

Short-term disability insurance may be more appropriate for policyholders who can return to work after a short period. In contrast, long-term disability insurance may be more suitable for policyholders who cannot work for an extended period.

Where can dentists apply for disability insurance?

Several types of disability insurance companies can provide disability insurance to dentists. One standard option is to obtain a policy through a dental professional association, such as the American Dental Association (ADA). In the case of the ADA, they don’t offer extensive coverage or benefits as an insurance company would offer.

Another option is to purchase a policy through WealthCare Financial, which works with specialized insurance companies that focus on providing coverage for healthcare professionals.

It is also possible to obtain disability insurance through an employer-sponsored group policy or an individual policy purchased directly from an insurance carrier. The type of policy, like the ADA policies, can have some coverages or gaps that you need to be aware of.

Guide To Asset Protection For Physicians

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As a physician, your assets are hard-earned, and it’s essential to protect them from potential legal threats such as a malpractice claim. This guide aims to provide you with valuable insights and practical strategies for effective asset protection.

What are personal assets?

Personal assets are property or possessions that an individual owns and that have value, such as:

Cash and investments

This includes money in bank accounts, brokerage accounts, stocks, bonds, mutual funds, and other investment products.

Real estate

This includes any property that an individual owns, such as a home, rental property, or vacant land.

Personal property

This includes physical possessions such as a car, furniture, artwork, and jewelry.

Business ownership interests

Any medical professional such as physicians or dentists, may choose to own a business, such as a medical practice or clinic, either individually or in partnership with other physicians.

Owning a business can provide opportunities for increased income and professional autonomy, but it also exposes you to potential liabilities, which makes asset protection a critical consideration.

Retirement accounts

This includes 401(k)s, IRAs, and other retirement investment accounts.

Insurance policies

This includes life insurance policies, disability insurance policies, and long-term care insurance policies, umbrella policies or any other individual insurance coverage from all insurance providers.

Intellectual property

This includes copyrights, trademarks, and patents that an individual owns.

What are asset protection strategies?

  1. Setting up a limited liability company (LLC): An LLC is a business structure that provides personal liability protection to its owners. By setting up this asset protection vehicle, a physician can protect their personal assets from legal liabilities and creditors that may arise in connection with their professional activities.
  2. Creating a trust: Creating an irrevocable trust with the guidance of an estate planning and asset protection attorney can be an effective strategy to protect your assets. An irrevocable trust is a legal arrangement in which you transfer ownership of your assets to a trustee, providing a layer of protection from potential legal claims while allowing you to maintain control and use of your assets within certain parameters.
  3. Purchasing insurance: Purchasing insurance is a common and effective asset protection strategy that can help mitigate financial risks, estate tax and provide a layer of protection in case of unexpected events or liability claims. Insurance policies such as professional liability insurance, general liability insurance, and umbrella policies can provide coverage for legal expenses, damages, and settlements, minimizing the financial impact on your personal assets.

12 Options for asset protection planning

1. Malpractice Insurance for Doctors

Malpractice insurance, also known as professional liability insurance, is a type of insurance that covers physicians and other healthcare professionals for claims related to professional negligence. It is designed to protect a healthcare professional’s assets in the event that they are sued for medical malpractice.

Pros of malpractice insurance for asset protection:

  • Provides financial protection: Malpractice insurance can help protect a physician’s assets in the event of a medical malpractice lawsuit, which can be financially devastating.
  • Can help with legal defense costs: Malpractice insurance typically covers the cost of legal defense in the event of a lawsuit, which can be a significant burden for a physician.

Cons of malpractice insurance for asset protection:

  • May not cover all types of claims: While malpractice insurance can protect against claims related to professional negligence, it may not cover other types of claims, such as criminal charges or fraud.
  • Can be expensive: Malpractice insurance can be costly, especially for high-risk specialties.
  • Another con of malpractice insurance is that policy limits may not be sufficient to cover the full extent of damages or legal expenses in case of a claim. In some cases, malpractice claims can result in judgments or settlements that exceed the policy limits, leaving the physician responsible for paying the difference out of pocket. It’s essential to carefully review and understand the policy limits and consider purchasing additional coverage or other asset protection strategies to mitigate this risk.

2. Umbrella insurance policy

An umbrella insurance policy is a type of insurance that provides additional liability coverage above and beyond other insurance policies, such as a homeowner’s insurance policy or a car insurance policy. Umbrella insurance can be a useful tool for asset protection, as it can provide an extra layer of protection in the event of a lawsuit or other legal liability.

Pros of umbrella insurance for asset protection:

  • Provides additional liability coverage: Umbrella insurance can provide an extra layer of protection for a physician’s assets in the event of a lawsuit or other legal liability.
  • Covers a wide range of risks: Umbrella insurance can cover a wide range of risks, including personal injury, property damage, and defamation.Cons of umbrella insurance for asset protection:
    • May not cover all types of claims: While umbrella insurance can provide additional liability coverage, it may not cover all types of claims. It is important to carefully review the terms of the policy to understand what is covered.
    • Can be expensive: Umbrella insurance can be costly, especially for high-risk individuals or those with a lot of assets to protect.

Umbrella insurance policies are offered by many insurance companies, including major providers such as Allstate, Geico, State Farm, and Nationwide. It’s important to compare the coverage, terms, and premiums offered by different insurers to find the best fit for your asset protection needs.

3. Prenuptial agreements

A prenuptial agreement, also known as a premarital agreement or a prenup, is a legally binding contract that is entered into by a couple before they get married. Prenuptial agreements can be used to define the financial rights and responsibilities of each spouse in the event of divorce or death.

In the case of physicians, a prenuptial agreement can be a useful tool for asset protection, as it can help to clearly define the ownership of each spouse’s assets and protect those assets in the event of a divorce.

4. Tenants by the Entirety

Tenants by the Entirety can be a useful asset protection strategy for physician couples since it provides protection for jointly-owned assets, such as a home or investment property, from individual legal claims or debts incurred by one spouse.

However, it’s important to note that this protection may not extend to business assets or individual accounts, and the rules for Tenants by the Entirety can vary by state.

5. Domestic Asset Protection Trusts

Domestic asset protection trusts (DAPTs) can be an effective asset protection strategy for physicians since they provide a legal means to transfer ownership of assets to a trust while retaining some control and access to the assets, while also shielding them from potential legal claims.

However, DAPTs are not available in all states, and there are strict legal requirements and potential risks to consider before establishing one with an experienced law firm.

6. Offshore trusts

Offshore asset protection trusts can provide additional asset protection benefits for physicians by placing assets outside the jurisdiction of U.S. courts, but they also come with additional complexity, legal requirements, and potential tax implications.

Distribution rules and restrictions for offshore trusts can vary widely, and it’s important to consult with a knowledgeable attorney and financial advisor before considering this strategy.

7. LLCs, Corporations, and Family limited partnerships

LLCs, corporations, and family limited partnerships can be useful asset protection tools for physicians since they provide a legal structure for owning and operating a business, which can limit personal liability for business debts or legal claims.

Some states, such as Wyoming, Nevada and Delaware, offer favorable state laws for forming and maintaining these entities, which may offer additional protection benefits. It’s important to understand the rules and requirements for forming and operating these entities in the chosen state and seek professional advice on the most effective structure for your situation.

8. Protecting real estate such as rental properties and more

There are several strategies that individuals can use to protect real estate assets, such as rental properties, from creditors and legal liabilities. Some options include:

  1. Setting up a limited liability company (LLC): By setting up an LLC to own the rental property, the individual can protect their personal assets from legal liabilities and creditors that may arise in connection with the rental property.
  2. Creating a trust: A trust can be used to hold and manage real estate assets, such as rental properties. By creating a trust, the individual can protect their assets from creditors and legal liabilities.
  3. Purchasing insurance: Insurance can provide protection for real estate assets in the event of a lawsuit or other legal liability. Types of insurance that may be relevant for real estate assets include homeowner’s insurance, landlord’s insurance, and umbrella insurance.

9. Retirement accounts

Retirement accounts, such as 401(k) plans, traditional individual retirement accounts (IRAs), and Roth IRAs, can be used as a tool for asset protection. These accounts are designed to help individuals save for retirement, but they also offer some protection from creditors and legal liabilities.

10. Equity stripping

Equity stripping is a technique that is used to reduce the value of assets in order to protect them from creditors. There are several ways to strip equity from assets, such as transferring ownership of the assets to a limited liability company (LLC) or creating a family limited partnership (FLP).

Pros of equity stripping for asset protection:

  • Reduces the value of assets: By transferring ownership of assets to an LLC or FLP, the individual can reduce the value of the assets and make them less appealing to creditors.
  • Provides liability protection: LLCs and FLPs provide liability protection for their owners, which can help to protect their personal assets from legal liabilities and creditors.

Cons of equity stripping for asset protection:

  • May be challenged in court: Equity stripping techniques may be challenged in court if they are deemed to be fraudulent or if they were created with the intention of defrauding creditors.
  • May be costly to set up and maintain: Setting up and maintaining an LLC or FLP can be expensive, as they require the services of a lawyer and may have ongoing legal and administrative costs.

It is important for individuals to carefully consider the pros and cons of equity stripping as it relates to asset protection and to seek the advice of a qualified attorney before implementing any asset protection strategies.

11. Annuities

An annuity is a financial product that provides a stream of payments to an individual in exchange for a lump sum payment or a series of payments. Annuities can be used as a tool for asset protection, as the assets used to purchase the annuity are generally protected from creditors.

12. Whole life insurance

Whole life insurance is a type of permanent life insurance that provides coverage for the policyholder’s entire life. Whole life insurance policies also have a savings component, called the cash value, which accumulates over time and can be used by the policyholder for various purposes, including asset protection.