Which Veterinarian Insurance Is
More Important to You and
Your Family?
More Important to You and
Your Family?
Life insurance or disability insurance?
Veterinarians can face much stress throughout their careers. This can lower the number of years you can expect to live. Plus, it can increase the risk for sickness and injury.
Both are why when you compare them to people in other fields, veterinarians should have two insurance policies. Life and disability.
But if you had to choose between getting a life or a disability insurance policy, which one is more important?
Why Life Insurance Is Important for Veterinarians
Life insurance is the oldest type of policy to reduce financial risk. Yet unlike other types, life insurance does not benefit the policyholder. Instead, it benefits the beneficiaries. Those folks with whom the policyholder designates should receive the insurance proceeds if he or she were to die.
The thing is, death is certain for everyone. Its just a matter of when it occurs.
Sadly, for veterinarians, death can come sooner than people in many other fields. That’s because the nature of work in veterinary medicine has high health risks.
This includes high risk of infections, cancer and mental illness.
Increased Risk of Cancer
In a study in France, scientists showed veterinarians have increased risks of cancer.1 This included cancer of the pancreas, esophagus, colon and brain. Plus, a higher risk of melanoma. They conclude the high risk of cancer is due to exposure to animal viruses. Plus, radiation and chemicals, such as anesthetics.
Cancer is the second leading cause of death in the U.S., per the Centers for Disease Control. Due to the workplace, veterinarians have an increased risk to die from cancer at an early age.
Increased Risk for Mental Illness
The nature of the work can also increase risk of mental illness. In fact, many veterinarians suffer from mental illness throughout parts of their careers.
The American Veterinary Medical Association did a cross-sectional study among 11,627 veterinarians.2 They found nearly one-third suffered from depression at some time during their career. About one in five were receiving treatment for a mental illness. One in six had thoughts of suicide. And about 1 out of a hundred, attempted suicide.
In fact, per a British study, suicide rates among veterinary surgeons are double or more than those of dentists and doctors.3 And four to six times higher than the general population.
The reasons are due to work related stress, social isolation, alcohol and drug misuse. Plus, the frequency of euthanasia on pets and slaughter of farm animals.
Despite the high percent of suicides from veterinarians, the actual number of those who commit the act are low.
But the risk is there. And it could happen quickly from increased stress.
This happened to Shirley Koshi.4 She was a veterinarian in New York who cared for a stray cat that a woman later claimed was hers. After the woman filed a lawsuit, demonstrators surrounded the clinic. Plus, people on social media said many hateful things about the veterinarian. Sadly, she suddenly committed suicide to escape the frenzy.
What Life Insurance Does Not Cover May Surprise You
You can see why taking out a life insurance policy is so important for every veterinarian. This is especially true from those who are married and/or have children or other dependents. The risk of death is too great to not have the coverage.
Yet there are two things that life insurance does not usually cover. At least not in the first two years from the date you take out the policy.
Death From an Illness in the First Two Years
The first exclusion is the “incontestability clause”. This clause says that if the insured person made misstatements on the policy application, and dies within two years, the insurance company can decline to pay the death claim. After that, the policy is “incontestable” except in rare cases of outright fraud.
Death can be from most any disease or ailment during this two-year period. This can include heart disease, cancer or infectious disease. And the insurance company will not pay your beneficiaries.
The thing is, the clock on the “incontestability clause” resets whenever you replace your policy with a new one.
Death From Suicide
The second exclusion is the “suicide clause”. This clause states the insurance company will NOT pay the death benefit if the insured commits suicide within two years of taking out a policy.
Just as with the “incontestability clause”, if you replace an existing life insurance policy with a new one, then the time clock for the “suicide clause” is set back to zero and starts all over again.
One of the most recent, famous cases in which the insurance company denied a claim was the death of actor Heath Ledger in 2008.5 The New York Medical Examiner reported the death was due to “acute intoxication” of prescription medications.6 Yet the insurance company denied the $10 million policy Ledger bought just seven months before he died. He had named his three-year-old daughter beneficiary.
The insurance company first denied the claim on the grounds of his policy’s two-year contestability period. It also denied the claim because the death may have been from suicide. Yet Ledger’s heirs filed a lawsuit and won. But it was lengthy. And likely costly.
Why Disability Insurance Is Important for Veterinarians
Disability insurance reduces your financial risk should you get sick or injured and are no longer able to perform your work in veterinary medicine. It replaces your lost future income.
Disability insurance provides the tax-free benefit directly to you. Almost immediately after you file the claim. So, you can continue paying your bills to keep your clinic open. Plus have money to pay for your personal expenses.
Anyone can get sick or hurt over the course of their career. But for veterinarians, the risks are much greater than the general public. And higher still for large animal and equine veterinarians.
That’s because every day, you face the risk to become infected with bacteria, virus or fungi from exposure to animals. Plus, you risk injury from an animal attack or bite.
Research scientists at the University of Washington found workplace related injuries among animal care workers are common.7 Worker-animal interaction can often cause these physical insults.
Surprisingly, one in four people will become disabled before they retire. And over nine out of ten disability claims are due to an illness rather than an injury, per the Council for Disability Awareness.8 These illnesses include cancer, heart attack, diabetes, and depression. Plus, back pain and arthritis.
What Disability Insurance Provides May Surprise You
Whether you work with dogs or horses, cats or cattle, having a long-term disability insurance policy can give you peace of mind.
Disability insurance can help you pay ongoing living expenses, such as your home mortgage or rent and utilities. Plus, you can use it to pay for food, medication and medical bills.
Most companies that offer long-term disability income insurance offer you a choice in the number of days you’ll need to wait before you receive money. It can start in as little as thirty days.
Plus, it often comes with lifetime benefits, especially if you suffer the disability before you reach fifty years of age and remain disabled.
And, unlike other types of insurance, your premiums don’t increase with age. So, you can lock in lower rates when you are young. Plus, you can add on coverage as your income grows.
Which Insurance Should You Get First?
So which insurance should you get first? Life or disability?
Veterinarians should get both, especially if you have dependents.
But if you must choose which one to get first, the answer is disability insurance. There are three reasons why.
The first reason is the loss of ability to work will promptly and maybe permanently impact your loss of income from the practice of veterinary medicine. Without the disability insurance, how will you have enough money to pay your bills and suvive?
The second reason is that disability insurance pays an immediate tax-free benefit to you when you need it. Plus, the younger you start, the less you have to pay each year throughout your career.
The third reason is the benefits of life insurance may not materialize until years or decades later. There is a much greater chance you will get sick or injured before you will die.
About Veterinarian Insurance
This blog article is presented to you by Veterinarian Insurance. Founded by Jack Lungmus, a specialist in financial risk management for veterinarians for over 40 years.
Go here to schedule a FREE consultation or call Jack Lungmus at 800-860-2862.
Complete the form below to sign up and get tips about how you can lower your risks.
References
1. “Cancer Causes and Control”; Cancer Incidence among Male Swedish Veterinarians and Other Workers of the Veterinary Industry: A Record-Linkage Study; Travier, N., G. Gridley, et al.; Aug 2003; 14(6):587-93
2. “J Am Vet Med Assoc”; Risk Factors for Suicide, Attitudes toward Mental Illness, and Practice-Related Stressors among Us Veterinarians; Nett, R.J., T.K. Witte, et al.; Oct 15 2015; 247(8):945-55
3. “Veterinary Record”; Veterinary Surgeons and Suicide: A Structured Review of Possible Influences on Increased Risk; Bartram, D.J. and D.S. Baldwin; Mar 27 2010; 166(13):388-97
4. http://veterinarynews.dvm360.com/outrage-over-ownership-dispute-veterinarians-death-plays-out-internet DVM 360; Outrage over Ownership Dispute, Veterinarian’s Death Plays out on Internet; March 11, 2014
5. http://www.tmz.com/2008/09/29/ledgers-life-insurance-co-suicide-no-cash/ TMZ; Ledger’s Life Insurance Co: Suicide = No Cash; September 29, 2008
6. https://www.nytimes.com/2008/02/07/nyregion/07ledger.html New York Times; Medical Examiner Rules Ledger’s Death Accidental; Barron, J.; Feb 7, 2008
7. “American Journal of Industrial Medicine”; Work-Related Injuries to Animal Care Workers, Washington 2007-2011; Fowler, H., D. Adams, et al.; Mar 2016; 59(3):236-44
8. 2014 Long Term Disability Claims Review. 2015, Council for Disability Awareness.
