Financial planning is part of the graduation process for veterinarians; it may include setting up disability insurance for veterinarians and choosing a loan repayment plan. Some veterinarians also need other protection, such as life insurance or disability overhead coverage. Here are some tips to help with your financial planning:
Understand Why You Need Coverage
Disability insurance for veterinarians protects you from financial loss from a job injury. You receive a portion of your income until you return to work. Disability insurance is a standard benefit at some jobs, but you need specific coverage to protect you from issues unique to your profession. Some veterinarians work outside of normal business hours because they may be called to a client’s home in an emergency. A policy shouldn’t be limited to injuries that occur at the clinic or during business hours. If you are taking over an existing practice or partnering with an established veterinarian, check if coverage is in place and what it includes, or if you’re expected to provide your own policy.
Learn About Disability Insurance for Veterinarians
Coverage works for all kinds of practices. This includes small-animal, large-animal, single-vet clinics, and team-based practices. Modify the policies to fit your situation and income. The policy transfers with you, so it protects you when you move to another practice or start your own. Some things to know when comparing policies include:
- A residual benefit rider provides coverage if you can’t do your job, even if you are only partially disabled.
- A catastrophic disability rider provides coverage with an added monthly benefit if you suffer a severe injury.
- Future increase riders increase your future benefits without requiring further proof of insurability.
Two terms to look for in your policy are “own occupation” and “any occupation.” Own occupation coverage means the policy pays benefits if you can’t perform your job as a veterinarian, even if you could work in another job. Any occupation means the policy only pays benefits if you are unable to work in any job, including one outside your chosen career. An injury might prevent you from performing regular duties, such as surgery, but you are still able to complete administrative duties. An own occupation policy helps protect your income in this situation.
Review Terms with Disability Coverage
Disability coverage should be non-cancellable and include a guaranteed renewal. With these clauses in your contract, the insurance provider can’t make changes or drop your coverage without your consent. Other areas of the policy to review include:
- A cost-of-living adjustment, which adjusts for inflation; if the number is zero, you won’t receive any increases based on rising living costs.
- A waiting period that specifies how long you must be off work before monthly payments begin.
- A benefit period, which details how long the policy is in effect, such as for a certain number of years or until a specific age.
Plan for Other Financial Needs
If you plan to start your own practice or are taking over a practice, you may need additional coverage. Life insurance and disability overhead expense insurance are two policies to add to your financial plan. Life insurance pays out upon the policyholder’s death; this provides money for dependents to replace income. Disability overhead expense insurance pays your business expenses if you’re unable to work and you own your practice. As the practice owner, you have rent, utilities, employee salaries, and other expenses to meet even if you are sick or injured. This policy pays benefits based on the income you bring into the practice.
Some soon-to-be veterinarians need to repay loans, and they may have multiple repayment plans to choose from. A planning services company will help you determine what you are able to afford in loan payments after graduation. They also help you navigate changes in repayment plans to pay your loans on time. An income-based or graduated plan may make payments more attainable at the start of your career and adjusts with future income.
Plan and Protect Yourself
As you look at insurance coverage for your veterinary career, compare disability insurance policies and benefits. Knowing the details helps you decide if they are adequate for how and where you practice after graduation. Contact a company that provides financial planning services for veterinarians; this allows you to receive assistance with financial decisions.
