financial planning – WisMed Assure

Hidden Tax Benefits of Long-term Care Planning

March 12, 2025March 12, 2025

By Tom Strangstalien, Insurance Advisor

We’re well into the tax season, filing our returns for 2024 and planning for the 2025 tax year, and this is a perfect time to explore the hidden tax advantages offered by diligent long-term care planning.

Some things to consider:

Did you know tax-qualified long-term care policies are tax deductible?
Do you have funds accumulated in your Health Savings Account that you’re not sure what to do with?
Did you know that you can pay premiums for a tax-qualified long-term care insurance policy with your HSA funds?
Did you know that any benefits paid out by a qualified long-term care insurance policy are not taxable as income?
Are you looking for more tax deductions?

Tax-qualified long-term care insurance premiums can be combined with other medical expenses and be deductible for those who itemize their returns. The sum of medical expenses must exceed 7.5% of one’s adjustable gross income to be deductible. If this is not the case, the premiums alone can be deductible. There are limits on the amount of the premiums that are deductible, based on a taxpayer’s age and adjustable gross income. For this tax year (2024), anyone over the age of 70 can deduct up to $5,880 on their federal tax return. A taxpayer can deduct premiums as medical expenses OR deduct the premiums alone – not both.

To be considered qualified, these policies must adhere to the guidelines established by the Health Insurance Portability and Accountability Act (HIPAA) of 1996. This means they must provide coverage for medically necessary care for individuals who are chronically ill and unable to perform at least two activities of daily living such as bathing, dressing, or eating, or who require supervision due to cognitive impairments.

Long-term care insurance premiums can also be deducted on your state tax return. Each state varies with the qualifications and limits that are deductible, so you should consult a financial advisor or tax professional in your state.

If you have accumulated funds in your health savings account, purchasing long-term care protection can be a smart place to use these funds. Not only are you purchasing long-term care insurance with “pre-tax” dollars, any benefits received by the policy will be tax free! It is important to know that if HSA funds are used to pay premiums, these premiums are not eligible to be deductible on your federal or state tax return as mentioned above.

Benefits received by a qualified long-term care policy are not taxable as income. This can also be the case with the increasingly popular “hybrid life insurance policies” that contain long-term care insurance benefits. These hybrid policies can be viewed as a win-win-win and there are many plans available. These policies offer a life insurance amount that is income tax free upon death, an accelerated long-term care benefit where benefits are not taxed as income (subject to the IRS 2025 per diem daily benefit of $420), and a cash value component where cash value amounts of the contract accumulate on a tax deferred basis.

I’m a big fan of the hybrid life insurance policies that offer long-term care benefits. In many cases where I have assisted in long-term care insurance planning, we have utilized an “indexed universal life” policy. Let’s consider the purchase of a $1,000,000 contract. One of three things can happen. If the policy is used for long- term care expenses, most of the policy amount can be used to pay the expenses tax free. When the policyholder passes away, the designated beneficiary will receive the unused portion of the $1,000,000 on an income tax free basis. Lastly, you can choose to access the cash value of the contract if needed in the form of a withdrawal or loan (tax treatment will vary based on many factors). The return on the funds in the cash value account is contingent on the performance of selected stock market indexes. A better alternative to self-funding long-term care? In many cases a resounding yes!

There are numerous tools and options available for long-term care planning. If you want to explore your personal long-term care plan to determine your best course of action, do not hesitate to reach out to the WisMed Assure team at insurance@wismedassure.org, or call 608.442.3810.

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

Last-Minute Money Moves for 2024 Taxes

March 10, 2025March 13, 2025

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account

If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline. Just remember to reduce your contribution by the amount your employer contributed. HSA contributions are tax-deductible, growth is tax deferred, and withdrawals used for qualified medical expenses are tax-free. This triple tax advantage makes HSAs a powerful tool for health care costs and reducing your tax burden. As a bonus, after age 65 you can use the HSA penalty free for non-health care spending too; you’ll just pay income tax on the withdrawals.

Max Out Your IRA Contributions

The IRS allows you to make contributions to your Individual Retirement Account (IRA) for the 2024 tax year until the filing deadline (April 15, 2025). If you haven’t hit the maximum contribution limits yet ($7,000 for those under 50 and $8,000 for those 50 and older or your earned income if less), this is a great way to reduce your taxable income while boosting your retirement savings. However, most physicians with access to employer retirement plans will find they cannot deduct the IRA contribution if their modified adjusted gross income (MAGI) exceeds $77,000 single or $123,000 married filing joint. If that’s your case, use the next strategy: the backdoor Roth IRA instead.

Backdoor Roth IRA Contributions

For higher-income earners, consider one of the most beneficial tax strategies: the backdoor Roth contribution. You can contribute to a traditional IRA by April 15 for 2024 (whether deductible or not) and then convert those funds to a Roth IRA. This move allows you to get money into a Roth IRA where your earnings will grow tax-free in the future. See the full Backdoor Roth IRA article for more.

Self-Employed Income? Max Your Retirement Contributions

If you’re self-employed or have 1099 income, you still have time to contribute to a SEP IRA or individual 401(k) for 2024. These plans allow for higher contribution limits compared to other retirement plans, and contributions are tax-deductible. You can contribute up to 25% of your income or $66,000 (whichever is less) into either plan, and the deadline to set up and contribute is the same as your tax filing deadline, including any extensions.

Contribute to a Wisconsin Edvest 529 Plan

Wisconsin taxpayers can deduct Edvest contributions up to $5,000 per beneficiary from their state income tax return. If you make the contribution for 2024 by April 15, 2025, be sure to request that Edvest code for last year. Tip! The tax deduction is per beneficiary and the beneficiary can be anyone in the family. Savvy savers open multiple accounts and name each member of the family as a beneficiary, including parents, to maximize the tax deduction. When the child is ready for college, simply change the beneficiary.

These last-minute moves, before filing your 2024 tax return, can help you reduce your tax bill and position yourself for financial success in the coming year. For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

2025 Volume 1

February 28, 2025March 14, 2025

Working with WisMed Assure Helps Keep Medical Malpractice Rates Low in Wisconsin

By Shawna Bertalot, CIC, ACI, WisMed Assure President

Clipboard with documents about medical malpractice and gavel.

Some good news for Wisconsin Physicians, Certified Registered Nurse Anesthetists (CRNA), and the hospitals and clinics that employ them. At the last meeting of The Board of Governors of the Injured Patients and Families Compensation Fund (IPFCF) in December 2024, the Actuarial Committee made the recommendation to keep rates the same for the IPFCF’s Fiscal Year July 1, 2025 to July 1, 2026.

Last-Minute Money Moves for 2024 Taxes

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Road sign that reads 'Smart Money next exit'

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline.

Hidden Tax Benefits of Long-term Care Planning

Documents on table for the premise of calculating the amount needed for retirement and Long Term Health Care.

By Tom Strangstalien, Insurance Advisor

Tenants Improvements and Betterments, Is Your Clinic Properly Insured?

By Laura Weber, Senior Large Account Director

If you rent space for your office, clinic, or even just for storage, it’s important to understand per the lease terms which party (lessee versus lessor) is responsible for covering property at the location. The agreement with the building owner should specify: if a property damage occurs at the rented location, who is responsible for securing insurance to cover walls, flooring, permanent fixtures, including any updates you may have made to the property whether fixed or removable.

WisMed Assure Implements Employee Navigator to Enhance Benefits Administration

Person presents employee benefits options on a digital interface.

By Martin Hurst, Insurance Service Representative

WisMed Assure is taking a significant step in modernizing benefits administration for our employee benefits clients by implementing Employee Navigator (a leading benefits management platform designed to streamline enrollment, improve efficiency, and enhance overall experience for both employers and employees). This cloud-based platform serves as a central hub for benefits management, integrating with insurance carriers, payroll systems, and HR software to create a seamless and efficient process.

Good Samaritan Law

By Jensen Peck, Business and Professional Insurance Executive

Good Samaritan Laws in Wisconsin are vital for protecting physicians who provide emergency care outside of a clinical setting. These laws encourage medical professionals to offer immediate assistance in emergencies without the fear of legal recourse, allowing medical professionals to extend their care beyond hospitals and clinics. However, it is important to be aware of when the law protects you and when it may not apply.

PAYE & ICR Plans Reopening for Student Loan Borrowers

December 16, 2024December 18, 2024

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

The Pay As You Earn (PAYE) and Income Contingent Repayment (ICR) plans will reopen in mid-December under an Interim Final Rule. For borrowers forced into forbearance under the Saving on a Valuable Education (SAVE) repayment plan, should you switch plans? Let’s find out.

Focusing on SAVE vs. PAYE only

ICR is typically only used by parent borrowers with Parent Plus loans or consolidated Parent Plus loans. Income Based Repayment (IBR) is also available for borrowers, but the payment amount and treatment of interest are equal to or substandard to PAYE and SAVE plans. Therefore, this article will focus on SAVE vs. PAYE.

Problems with SAVE

As of this writing, borrowers in the SAVE plan have been placed in forbearance with no interest, no payment, and no progress toward loan forgiveness. It’s anticipated this forbearance will last well into 2025.

Making progress toward loan forgiveness

There are two options currently.

Switch from SAVE to a different payment plan, like PAYE, with required payments and progress toward loan forgiveness.

Anticipate using the PSLF Buyback program later to complete the 120 payments needed for forgiveness (assuming this program can be used to buyback months for the current forbearance.)

Comparing SAVE vs PAYE

Payment: Monthly payment under SAVE is typically lower than PAYE. The exception is at high income levels. The PAYE payment rises with higher income, but it is capped at the 10-year standard payment. The SAVE payment rises with higher income uncapped.

Interest: For those with relatively low income compared to their debt, the SAVE plan is often better than PAYE. The SAVE plan prevents interest from accruing when the monthly payment does not cover the interest. In contrast, unpaid interest accrues under the PAYE plan until it accumulates to 10% of the loan amount.

Length of Repayment: Loan forgiveness for borrowers that don’t qualify for Public Service Loan Forgiveness (PSLF) takes 20 years under PAYE. Under SAVE, forgiveness takes 20 years for undergrad loans, 25 years for graduate loans, or 10 years if the original amount borrowed was $12,000 or less.

Should you switch?

Everyone needs to run their own calculation to see what makes sense for their situation. Many borrowers will benefit by sticking with the SAVE plan if they are working for a government or 501(c)3 non-profit organization, assuming the PSLF Buyback program can be used to gain credit for the current forbearance later. For those with high income and/or their employer doesn’t qualify them for PSLF, switching to PAYE might be worthwhile.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Don’t Wait for Disability Protection: A True Story

December 16, 2024December 17, 2024

By Tom Strangstalien, Insurance Advisor

When you’re in your twenties and thirties, you can feel invincible. Despite the extraordinary odds of a disability, you might think, “why not wait until later in my career when my income increases?” After all, disability insurance can be expensive and impact your budget. Avoid the mistake of taking your health for granted – as resident and fellow physicians, you witness this every single day. To put it simply, life happens!

Did you know that you can get disability protection with an increasing benefit for as little as $25 to $50 per month? Put disability protection in place as early on in residency or fellowship as you can at as much as your budget allows. Also include a “future increase benefit” that allows you to increase your coverage as your income increases with no medical underwriting to protect your income throughout your entire career. Doing so protects you from the risk of financial ruin.

At WisMed Assure we are experts at designing these plans and work with physicians every single day to place this valuable protection for them. With permission, I’m sharing a story from one of our resident physicians verbatim.

“Hi Tom – this is quite a delay in my response, but I’ve unfortunately had some medical issues pop up in the past few months. I’m still very interested in disability insurance, but these medical things might have changed my situation, and I’ll let you be the judge. I’ll outline the events below. Please feel free to use my story as an example of why residents should do this as soon as possible during residency.

I woke up on a Sunday in mid-April with significant hearing loss in my right ear. I was diagnosed by an ENT provider with sudden-onset sensorineural hearing loss due to a viral infection. I took steroids for two weeks, and my hearing has returned to normal. From a long-term standpoint, there isn’t any increased risk of long-term hearing loss as a result of the condition, and I’m doing well!

As a part of the medical work-up, however, we obtained a brain MRI to ensure that an acoustic neuroma wasn’t causing my symptoms. Thankfully, that wasn’t seen. However, the MRI did find two incidental white matter lesions in my deep right parietal lobe. I don’t have any neurological symptoms and am feeling fine. I just saw a neuroimmunologist at Froedtert in late July, and thankfully, it isn’t likely to be anything clinically significant. These types of spots are typically associated with dementia in elderly patients, but they’re being found in younger patients (as MRI scans are being used more frequently in younger populations) and aren’t associated with any long-term issues. We will get a repeat MRI in one year to make sure it’s stable, and then I won’t require any additional monitoring.

So, QUITE a change in my health status. I’m feeling fine, and I’m not taking any medications at the moment. I also didn’t miss any time with these conditions. Otherwise, my answers to your initial list of questions haven’t changed. It wouldn’t take a genius to guess this would increase my monthly cost for disability insurance. Do you have any other insights or recommendations? Could you get some quotes again?”

Life truly does happen, and we don’t know what our future holds. I encourage all of you to obtain individual disability protection as soon as possible. Do not wait until it’s too late. My team and I are here to help and will passionately search for you and design a plan that is suitable for you. We exist for your benefit and it’s what we do.

For help with your insurance planning, contact Tom Strangstalien at 608.442.3730 or the WisMed Assure team at insurance@wismedassure.org, or call 608.442.3810.

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

2024 Volume 4

December 16, 2024December 17, 2024

Don’t Wait for Disability Protection: A True Story

By Tom Strangstalien, Insurance Advisor

PAYE & ICR Plans Reopening for Student Loan Borrowers

Pay As You Earn Repayment PAYE Plan paperwork

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Common Moonlighting Scenarios – What’s Covered by Your Malpractice Insurance?

By Jensen Peck, Business and Professional Insurance Executive

As the insurance agency for the Wisconsin Medical Society, we receive calls often from members and client physicians who are considering supplemental employment (side gigs) outside of their regular scope of practice. They are often told to “not to worry about” the liability because it’s either covered by the employer or “minimal exposure.” Fortunately, most physicians recognize this may not be true and it’s best to receive input from an insurance agency that specializes in health care liability. Let’s review a few of the more common scenarios and important questions that need to be answered to confirm potential malpractice exposures are covered.

Dental Benefits with Medicare Advantage

Dentist or dental hygienist in operation with patient.

By Martin Hurst, Insurance Service Representative

Medicare provides essential health care coverage for individuals over 65, but it does not cover routine dental services such as cleanings, exams, fillings, or dentures. For those in need of dental care, there are a couple options to enhance your Medicare coverage. You can consider Medicare Advantage plans that include dental benefits or opt for a standalone dental insurance plan.

Lifetime Term Life Insurance. Does It Exist?

October 1, 2024October 2, 2024

By Tom Strangstalien, Insurance Advisor

Last month was life insurance awareness month, but we should be aware of the value of life insurance and the opportunities it offers all year round. A relatively new concept in life insurance is guaranteed no-lapse universal life. So, what exactly is this new form of life insurance, and does it potentially serve a purpose in your life?

Term insurance is the least expensive and most common form of life insurance. You choose a term period of one year (annual renewable term), ten years, twenty years, thirty years, or in rare instances even 40 years. If you pay your premiums on time, the coverage is guaranteed to be in place if needed. At the end of the term period, you are now older and while you can potentially renew the coverage for another term, because you are older, the cost will be substantially higher. Alternatively, you could pay the current premium for our attained age each year until it reaches the point where it simply isn’t affordable anymore. Lastly, depending on the product that you purchased, you may not have the option to renew the coverage, and the policy simply lapses, so the coverage goes away.

The major question with term insurance is, “What if I need the coverage after the end of the term period?” As outlined above, it can create a situation that is not ideal. Life happens and there are numerous scenarios where you might want life insurance coverage for a lifetime and not just a specified number of years. A no-lapse universal life insurance policy can address these concerns. With universal life insurance, you pay more into the policy than you would with term insurance. It has a cash value component where excess funds are deposited in the earlier years of the contract. Those funds then assist in paying premiums in later years when you are older and premiums are more expensive. You can “cash out” your account at anytime if the coverage is no longer needed. If funded properly, the premiums will not change, however it must be carefully reviewed each year if anticipated interest rates (or the performance of the cash account) do not perform to the expected standards. If it’s not earning sufficient interest, premiums and/or the amount of coverage may need to be adjusted, or the policy can be in jeopardy of lapsing in the future since it’s not properly funded. It simply can run out of money.

With guaranteed no-lapse universal life, you pay more at your attained age [EW1] than you would with term insurance. However, like traditional universal life, it does have a cash value account. Yet, as long as you pay the no-lapse premium, the coverage is guaranteed to be there for life! Unlike traditional universal life, the contract is never in jeopardy. The cash account may or may not perform as anticipated, however this has no bearing on the life insurance coverage. It will always be there! It’s essentially a pseudo lifetime term insurance program!

What will your future hold? How will your health be? Will you want to create a legacy, a charitable endeavor, or a scholarship fund? Will you want to create wealth for your future generations? As you consider term life insurance, what term limit will you choose? Or maybe you should explore coverage for your lifetime in the form of guaranteed no-lapse universal life.

The WisMed Assure team would be happy to provide you with quotes from several companies. Our allegiance is always to you, and as always thank you for all that you do!

For help with your insurance planning, contact Tom Strangstalien at 608.442.3730 or the WisMed Assure team at insurance@wismedassure.org, complete this quick online form or call 608.442.3810.

Investing in Private Equity: A Pre-IPO Opportunity

September 20, 2024October 2, 2024

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Private equity offers a unique opportunity to invest in promising companies before they go public. Unlike publicly traded stocks, which are bought and sold on stock exchanges, private equity investments are made in privately held companies.

How Does Private Equity Work?

Private equity firms raise capital from investors, including individuals, institutions, and pension funds. They use this capital to invest in privately held companies through strategies such as:

Acquiring existing businesses
Funding expansion
Restructuring underperforming companies

Why Invest in Private Equity Before an IPO?

Potential for Higher Returns: Private equity firms often target high-growth companies. If these companies succeed, their value can increase significantly before an IPO, potentially yielding substantial returns for early investors.
Reduced Market Volatility: Unlike publicly traded stocks, private equity investments are not subject to daily market fluctuations, providing a more stable investment environment.
Exclusive Investment Opportunities: Private equity firms often have access to investment opportunities that are not available to the general public.

How to Invest in Private Equity

Direct Investment: Some private equity firms accept direct investments from individuals. However, this typically requires a substantial minimum investment and may not be accessible to all investors.
Private Equity Funds: Many investment firms offer private equity funds that pool capital from multiple investors. These funds provide diversification and are managed by professionals, making them a more accessible option for many investors.
Venture Capital Funds: Venture capital funds are a subset of private equity that focuses on investing in early-stage companies. While they often involve higher risk, they can also offer significant growth potential.

Important Considerations

Liquidity: Private equity investments can be illiquid, meaning it may be difficult to sell your investment before the company goes public or has another liquidity event.
Risk: Private equity investments carry higher risk compared to publicly traded stocks. There is no guarantee of success, and the potential for loss is greater.
Fees: Private equity firms typically charge management fees and performance fees, which can impact your overall returns. It’s important to understand these fees before investing.
Tax Implications: Consult with a tax advisor to understand the potential tax implications of private equity investments.

Investing in private equity before an IPO can offer significant rewards, but it’s essential to be aware of the associated risks and benefits. Conduct thorough due diligence on private equity firms and their investment strategies. Consider diversifying your portfolio by investing in multiple funds. And always consult with a qualified financial advisor to make informed decisions. Want more investing tips? See the 7 ways to improve investment performance.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

2024 Volume 3

September 19, 2024October 2, 2024

Worker’s Compensation Rates Drop

By Brian Fowler, WisMed Assure Account Director

Workers compensation program word concepts banner. Protection employer legal right. Infographics with linear icons on dark green background.

Starting October 1, 2024, for the ninth consecutive year, Worker’s Compensation rates in Wisconsin will drop. Work Comp rates in Wisconsin are set by the state and are the same for every insurance carrier.

Residual Disability Rider Provides Financial Protection

By Martin Hurst, Insurance Service Representative

The Residual Disability Rider is an essential addition to a physician’s disability insurance policy. It provides financial protection in the event of a disability that limits your ability to work at full capacity.

Investing in Private Equity: A Pre-IPO Opportunity

Businessperson working on laptop with PRIVATE EQUITY inscription

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Open Enrollment

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

Now is a good time to start thinking about your open enrollment. Many companies fail to properly do an open enrollment, or maybe it’s your first time. We had our HR OnDemand professional create this checklist to help you make sure you don’t miss anything.

Lifetime Term Life Insurance. Does It Exist?

By Tom Strangstalien, Insurance Advisor

New Rules Regarding Overtime Pay

Overtime law book and calculator in an office.

By Fine Point Consulting HR Professional

The Department of Labor announced a final overtime rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, on April 23, 2024. The rule revised the regulations issued under the Fair Labor Standards Act (FLSA) that implement the exemptions from minimum wage and overtime pay requirements.

An Invaluable Secret for Residents and Fellows

June 28, 2024July 9, 2024

By Tom Strangstalien, Insurance Advisor

I recently spoke with a physician regarding an eye condition that he has developed. He doesn’t know his prognosis, but there’s a strong possibility that it could be debilitating and threaten his ability to practice medicine in his specialty. He inquired if there’s any way to increase his disability insurance coverage as his current limits are significantly below his income.

Upon investigation, we discovered that the relatively small amount of monthly benefit protection included in the contract he purchased as a resident included a Future Increase Option. This allowed us to increase his disability protection with no medical underwriting! The uncertainty of his eye condition was of no consequence, and we were able to increase his monthly benefit amount to a level much more suitable to his current income.

We understand that as residents and fellows your income and budget are limited. You are far from the income you’ll receive as an attending physician in your intended specialty. You need disability protection and the earlier you purchase this protection, the less expensive it will be throughout your career. However, with your current budget, you may think you just can’t afford it at this point. This is not necessarily true. But how do you get affordable disability insurance?

As referenced above, the key here is the Future Increase Option. Insurance companies vary their name and definition of the benefit. It may be referred to as a “Future Purchase Option,” a “Maximize Your Benefit” option, or other terms. The purpose of the option remains the same; it allows you to increase your disability monthly benefits in the future without the worry of medical underwriting! But what about your budget concerns?

I’ve worked with several physicians this week whose budget was a concern, so we applied for a relatively small amount of disability monthly benefits coverage. For example, $2,000 or $3,000 per month, well short of what you will need as an attending physician. However, we included the Future Increase Option in the contract to allow you to adjust it once you’re earning more. In each case, our client is paying less than a $100 per month for this essential coverage! My advice for every resident and fellow is to put at least a base amount of coverage in place with the future increase option included. As your income increases and your budget allows, we can easily increase your coverage.

You help your patients manage their health conditions every single day. Will you ever experience any of these conditions? Your ability to earn an income is your most valuable financial asset, so protect it now. At WisMed Assure, our allegiance is to you and to serving your financial needs. We are here to provide you with quotes for this protection at any time, at your convenience, with absolutely no obligation. As always, thanks for all that you do!

For help with your insurance planning, contact Tom Strangstalien at 608.442.3730 or the WisMed Assure team at insurance@wismedassure.org, complete this quick online form or call 608.442.3810.