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Building a well-rounded financial portfolio that includes a quality life insurance policy as a financial tool can help ensure financial security for loved ones.
Many professionals find themselves frustrated by school debt that burdens an otherwise financially fruitful career—a dilemma frequently faced by physicians. According to Shawn Goheen, CSA, LUTCF, a partner at Texas-based insurance company Goheen Insurance: A Simplicity Company, life insurance can be an important financial tool for managing medical school debt and safeguarding personal finances. Goheen finds that physicians generally desire a holistic method for managing school debt and personal finances. Instead of attempting to individually address each financial issue. Based on Goheen’s experience, utilizing a portfolio allows physicians to tackle their finances free from excessive financial pressure and with a clear picture of their potential financial growth trajectory. Doing so will protect doctors both in the short term and in the future.
In particular, Goheen recommends creating this portfolio via life insurance, noting that many physicians are unaware of how they can effectively leverage it. Goheen stresses that a solid life insurance policy allows physicians and their loved ones to enjoy financial stability, laying the foundation for generational wealth. Furthermore, doctors who adopt this strategy ultimately lessen their family’s tax burden upon their death.
Goheen also emphasizes that physicians are human beings. As such, they must consider the key role that a stellar life insurance policy plays in their health issues. Given the significant amount of stress brought on by long hours and other elements that are part of a doctor’s career, the potential for burnout and ensuing health problems is notable amongst the healthcare professional population. As a result, a life insurance policy that provides doctors with the necessary support in the event of their having to take a work hiatus is crucial. In Goheen’s opinion, a convertible policy, specifically, is an excellent way to make sure financial coverage will endure, regardless of altered health status in the immediate time period and in the long run.
A solid life insurance policy provides physicians with the assurance that, according to Goheen, any major changes in their interpersonal relationships will neither adversely affect their financial assets nor their access to funds. For instance, a physician amid a changing relationship with a spouse, notes Goheen, should ensure a buy-sell agreement, which will help save time and costs during a nasty divorce.
Physicians with quality life insurance are better suited, notes Goheen, to address debt and build wealth rather than let financial obligations like student loan payments dig a hole in their wallets. Given the potentially tremendous cost of paying off medical school, physicians would be doing themselves a huge disservice by not engaging in a financial planning strategy that balances income with debt payments. This, adds Goheen, is where life insurance comes into play; by alleviating medical school payments, life insurance can let physicians feel confident that their loved ones will not have to pay those costs.
According to Goheen, physicians must work with a wealth-management professional when creating their portfolio. Experts in the field can help physicians make decisions like how to determine their most appropriate level of life insurance, how to invest, and how much time is needed to optimize value. They can, Goheen notes, ensure that physicians reap the rewards of tax-advantaged growth, flexibility, and productive wealth management. Goheen strongly advises physicians to build a holistic, well-rounded portfolio early in their career, thereby assuring loved ones will see reduced taxes and be financially secure in any event. This means investing in a quality life insurance policy.
