The retirement landscape today is vastly different than it was a generation ago. With life expectancies increasing, medical professionals may have a retirement period that lasts for 30 years or more. One of the greatest risks people now face in retirement is outliving their savings.
Fortunately, there are steps you can take now that will help you to protect your savings and also reduce your costs during your retirement years when your income is likely to be reduced.
Disability and professional overhead insurance
Disability income insurance provides monthly income replacement should you find yourself having to take time off to recover from an illness or injury. During this time, fixed costs will continue and can build up over time. Professional overhead expense insurance can help to decrease the burden of these costs during your recovery period.
For physicians in the late-career stage, it is especially important to maintain maximum coverage amounts for both of these types of insurance. Why? If you have to withdraw from your retirement savings to finance your recovery period when you are approaching retirement, you may not have the time necessary to replace these savings and recoup the lost returns on your investment growth.
Permanent life insurance protection
While BCMA term life insurance is a practical option at a younger age to cover your temporary needs such as mortgage protection, a child’s education, or to replace your income due to a premature death, the late-career stage is a good time to start thinking about permanent life insurance as a cornerstone of your estate plan.
As the name implies, this type of insurance provides lifetime coverage. If you have BCMA life insurance, you have the option to convert to lifetime coverage without medical evidence at any time before you reach the age of 70. Rates are based on your age at the time of conversion; therefore, you can lock in lower rates by converting from term to permanent life insurance in your 50s or 60s.
Long term care: protect your nest egg
Many of us take for granted the ability to do things such as bathe, get dressed, and eat. Now that we are living longer than ever with progressive life-saving medical advances, studies show that we have a significant likelihood of needing a personal support worker in our later years, whether at home or in a facility.
Long-term-care insurance provides a tax-free benefit of up to $1500 per week should you require help with at least two activities of daily living, whether at home or receiving facility care. This type of protection is vital to have in retirement, especially as you will no longer qualify for disability income insurance when you stop working.
Other important insurance solutions
If you do not have critical illness insurance, it is still possible to qualify for coverage up to age 65. This type of protection provides a lump sum benefit payout if you are diagnosed with one of the 25 conditions covered under the plan.
As you age, your expenses for dental care, medication, and travel insurance often increase. Extended health care and dental insurance are both available through the Heath Benefit Trust Fund senior plan. The senior plan is available exclusively to members who lose their coverage under the Health Benefit Trust Fund standard or Core-Plus plans due to age or retirement.
If your retirement planning includes more time for traveling outside of Canada, emergency travel medical coverage is essential. BCMA members have access to the MEDOC emergency travel medical plan through Johnson Inc. MEDOC is an annual plan, providing up to $5 million in emergency medical coverage.
Advice for your pre-planning needs
As a BCMA member, you have access to a wide range of valuable insurance solutions that will help you create an effective protection plan for your retirement years at an affordable cost.
For help finding the right insurance solutions for your needs, contact your noncommissioned BCMA insurance advisor at 1 800 665-2262, or e-mail email@example.com or firstname.lastname@example.org. More information is also available on the BCMA website at www.bcma.org.
BCMA Insurance Manager
Above is the information needed to cite this article in your paper or presentation. The International Committee
of Medical Journal Editors (ICMJE) recommends the following citation style, which is the now nearly universally
accepted citation style for scientific papers:
Halpern SD, Ubel PA, Caplan AL, Marion DW, Palmer AM, Schiding JK, et al. Solid-organ transplantation in HIV-infected patients. N Engl J Med. 2002;347:284-7.
About the ICMJE and citation styles
The ICMJE is small group of editors of general medical journals who first met informally in Vancouver, British Columbia, in 1978 to establish guidelines for the format of manuscripts submitted to their journals. The group became known as the Vancouver Group. Its requirements for manuscripts, including formats for bibliographic references developed by the U.S. National Library of Medicine (NLM), were first published in 1979. The Vancouver Group expanded and evolved into the International Committee of Medical Journal Editors (ICMJE), which meets annually. The ICMJE created the Recommendations for the Conduct, Reporting, Editing, and Publication of Scholarly Work in Medical Journals to help authors and editors create and distribute accurate, clear, easily accessible reports of biomedical studies.
An alternate version of ICMJE style is to additionally list the month an issue number, but since most journals use continuous pagination, the shorter form provides sufficient information to locate the reference. The NLM now lists all authors.
BCMJ standard citation style is a slight modification of the ICMJE/NLM style, as follows:
- Only the first three authors are listed, followed by "et al."
- There is no period after the journal name.
- Page numbers are not abbreviated.
For more information on the ICMJE Recommendations for the Conduct, Reporting, Editing, and Publication of Scholarly Work in Medical Journals, visit www.icmje.org