Jamie K. Fleischner
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Even if you may be eligible for employer-sponsored benefits such as health insurance, life insurance, disability insurance,
or even long-term care insurance, obtaining insurance on your own may offer benefits to you, as well. An individual insurance
policy provides you with more control, more flexibility, more comprehensive coverage, and more options to modify your benefits
in the future. The following are three types of individual policies you may want to pursue.
Life insurance pays a sum of money to your beneficiaries at your death. It is intended to replace your human life value, the economic value
your survivors were counting on while you are alive. If you are or were previously working full time, you may have had group
life insurance, typically a multiple of your salary. Most group life insurance plans are not portable, however, meaning they
cannot follow you if you leave your full-time employer.
You can purchase an individual life insurance policy regardless if you are working full time, part time, or locum tenens.
The advantage of carrying your own life insurance is the portability and control you have over your policy throughout your
life, without relying on your employment status.
Life insurance rates have come down substantially in the past three to five years. Depending on your age, sex, and health
status, your individual life insurance rates may in fact be less than those in a group insurance policy. The risk in not carrying
your own life insurance is if you experience an adverse change in health or decide to take up a risky avocation—skydiving,
for example. You may find yourself paying a lot more in premiums when it comes time to apply. Having your own individual policy allows you to take your policy with you no matter where you work. It is recommended that
you take out at least 12 to 14 times your annual income in death benefit to replace your economic value.
Disability insurance replaces your earned income if you become too sick or injured to work. If you rely on your income to pay your bills and support
your lifestyle, it is imperative that you properly protect your income.
The cost of disability insurance varies based on your medical specialty, sex, age, and geographic location. The benefits of
carrying your own policy are portability and the ability to adjust it as your situation changes.
When purchasing disability insurance, make sure your policy has a definition of disability that covers you if you can't work
in your medical specialty. For instance, if you work in a surgical specialty, the policy would pay you a monthly benefit if
you couldn't work in that specialty, even if you retrained and found work in another medical specialty or occupation. If you
are in the early stages of your career, it is important that your policy has the ability to increase in the future as your
income increases.
Long-term care insurance pays a daily benefit if you are unable to perform activities of daily living or suffer cognitive impairment. Often, Medicare
does not cover long-term care services, which can wipe out retirement savings if you are not properly insured. Some employers
offer long-term care insurance as an employee benefit.
Similar to other kinds of insurance, a group long-term care policy may not travel with you if you leave your job or retire.
The ideal time to purchase a long-term care policy is when you are young and healthy. Policies become more expensive as you
age. Applying for a policy requires medical underwriting that looks at past medical history. You can lock in rates for life
or pay up after a set time. Discounts may be available if you and your spouse or partner both purchase a policy simultaneously.
Being a locum tenens professional certainly has its benefits. It provides you new career opportunities and flexibility. You
can similarly take control over your own insurance benefits to provide peace of mind that your hard work and dreams will be
fulfilled and protected, no matter where your choices about work and employment may lead you.
Jamie K. Fleischner, CLU, ChFC, is president of Set for Life Insurance ( http://setforlifeinsurance.com/),
based in Denver and licensed in all 50 states.
ModernMedicine NETWORK
COMMUNITY
As her husband begins to accept locum tenens assignments, attorney J.L. McCreedy relates the couple's struggles and triumphs
as they find the direction they need. Among the topics she discusses at http://locumlife.com/direction: insurance, compensation, and working abroad.
TOOLS
Life insurance, disability insurance, long-term care insurance—but what about tail coverage? Go to http://locumlife.com/tail to find out what locum tenens practitioners should do about it.
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