
#247 What Every Doctor Needs to Know About Insurance ft. Peter Kim, MD
In this episode, Dr. Peter Kim talks about something we all know is important but don’t always pay enough attention to—insurance. It’s not the most exciting topic, but it’s one of the most important ways to protect yourself, your family, and everything you’ve worked so hard for.
Peter shares how the recent wildfires in California made him think about what really matters and why having the right insurance is so important. He’ll walk you through the basics, like disability insurance to protect your income, life insurance to take care of your family, and home and car insurance to safeguard your biggest investments.
He also talks about extra coverages, like umbrella insurance and malpractice insurance, and shares some super helpful tips to make sure you’re getting the coverage you need without overpaying. By the end of this episode, you’ll feel confident about building a safety net that lets you focus on what matters most. Tune in!
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Episode Highlights
Now, let’s look at what we discussed in this episode:
- Why Insurance Matters
- Disability Insurance – Your Income’s Safety Net
- Life Insurance – Peace of Mind for Your Family
- Protecting Your Home and Car
- Extra Coverages and Final Tips
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Why Insurance Matters
Peter Kim begins the podcast by reflecting on the wildfires in California, sharing how they’ve affected his community, friends, and even his own property. This experience inspired him to think about how important it is to be prepared for the unexpected. He introduces this week’s topic—insurance—and promises to cover everything listeners need to know to protect themselves and their families.
Peter shares that the wildfires led to some deep conversations with his kids about what truly matters in life. He states, “It really put things in perspective as to what’s important in our lives.” He points out that, as doctors, people are great at taking care of others but often neglect their own needs, like having proper insurance coverage.
Physicians have unique challenges: they start their careers with significant debt, transition to high incomes quickly, and often have a lot to protect. Peter stresses, “Protecting ourselves, especially through insurance, is a critical part of really establishing and building financial security.”
While insurance may not feel exciting, Peter reminds listeners that it’s the foundation for financial security and future growth. He highlights the importance of balancing forward-thinking income generation with safeguarding what you already have.
Peter sums it up perfectly, saying, “When things happen that are unexpected, like things that happened this week, we realize that protecting ourselves is critical.”
Disability Insurance – Your Income’s Safety Net
Peter emphasizes the importance of disability insurance, calling it a must-have for physicians. He explains, “It’s ultimately protecting your most valuable asset, which is your ability to earn income.” For doctors who’ve spent years training and taken on debt to build their careers, losing their ability to work could be financially devastating.
Peter suggests getting disability insurance early, during residency or fellowship, to secure lower premiums. He also highlights the importance of “own occupation” coverage, explaining that this type of policy ensures benefits if you can’t perform your specific medical specialty. For example, he says, “If I was unable to do OB anesthesia in particular, it’s not like I can just go back and be a different type of physician.”
Other key details to consider include the elimination period (how long you wait for benefits), benefit period (how long benefits last), and optional riders (add-ons like cost-of-living adjustments). These features can significantly affect the value of your policy and its ability to meet your needs.
Peter points out that disability insurance isn’t just for catastrophic events. He explains, “Many physicians actually live paycheck to paycheck,” making it even more important to have coverage in case of unexpected interruptions.
He wraps up with a practical takeaway: “The earlier you buy, in many ways, the better it is because you get to lock in lower premiums, especially if you’re going to keep it for a long period of time.”
Life Insurance – Peace of Mind for Your Family
Peter shifts to life insurance, explaining its purpose: providing for your family if the worst happens. He breaks down the two main types—term life insurance and whole life insurance—and their pros and cons.
Peter shares that term life insurance is a popular choice because it’s straightforward and affordable. He explains, “You’re getting X amount of coverage in case something happens for the next 20 or 30 years.” Whole life insurance, on the other hand, combines insurance with investment, which he acknowledges can work for some people but is often expensive and unnecessary.
To figure out how much coverage you need, Peter recommends calculating based on your debts, expenses, and desired income for your family. He mentions, “The number that you’ll see quoted out there is 10 to 12 times your annual income.” However, he notes that high-income earners might adjust this based on their unique financial situations.
Peter advises listeners to review their policies regularly as life changes—like having kids, buying a home, or changing jobs—affect coverage needs. He emphasizes, “Life insurance isn’t something you buy and forget about.”
His takeaway: “It’s about making sure your loved ones are protected, no matter what happens.”
Protecting Your Home and Car
Peter highlights the importance of property and auto insurance, especially for physicians. He explains that for many people, a home is their largest investment, and it’s essential to protect it with the right insurance.
He ties this to recent natural disasters, saying, “If something happened to it or happened to all your personal belongings in your home, what would you do?”
Renters should also consider renters insurance to safeguard their belongings and protect themselves from liability. Regarding auto insurance, Peter stresses having adequate liability coverage, particularly because physicians might be targeted in lawsuits.
He shares practical advice, such as bundling home and auto policies to save money and adjusting deductibles based on your financial situation.
Extra Coverages and Final Tips
Peter concludes by discussing additional insurance types, like umbrella insurance and malpractice insurance, and sharing tips for managing policies. He describes umbrella insurance as, “Extra protection that extends beyond your standard policies, like your home or auto policies.”
For physicians, malpractice insurance is non-negotiable, and those with businesses should consider business insurance to cover property damage, liability, and employee injuries. Peter also mentions long-term care insurance, which can help cover the high costs of extended medical care later in life.
He stresses the importance of working with an independent broker, explaining, “They can shop around for the best rates and coverage.” Regularly reviewing policies is another key tip, as life changes often mean your insurance needs change too.
Peter leaves the community with a powerful reminder: “Insurance isn’t glamorous, but it’s your safety net. It protects everything you’ve worked hard for.”
By taking the time to understand and manage their insurance, listeners can ensure their families and finances are secure, no matter what life throws their way.
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