Asset Protection for Physicians
Physicians may face many threats to their assets over their career. The prospect of a lawsuit due to a malpractice claim is certainly a big concern. In addition, there may be other situations that subject medical professionals to legal action and imperil their assets—things such as breach of contract, cyber attack, etc. This is especially true for physicians that operate their own private practice or work within a group practice.
Thankfully there are many different strategies for the protection of your assets.
Certainly malpractice insurance is a key component of any physician’s asset protection plan. While malpractice coverage can account for some situations, there may be instances when a malpractice policy only covers part of a judgment, and of course, there are situations where malpractice won’t even come into play. With rising malpractice premiums, many physicians are looking for supplements or alternatives.
This is where other protection methods help ensure the security of your assets and even lessen your malpractice needs. These strategies could include things like:
- Trusts – some trust arrangements, such as irrevocable life insurance trusts (ILT), grant asset protection from creditors
- Cash Value Life Insurance – certain states provide asset protection for life insurance death benefits, as well as the policies cash value
- Annuities – some states, provide asset protection for annuities
- Corporate Structuring – you can reduce your liabilities and protect your assets through certain corporate arrangements
Your best asset protection strategy mix will depend on your unique situation—your practice arrangement, the types of assets and properties you own, and your personal and business needs. Cambridge Financial Group is particularly skilled at helping physicians and medical professionals shape their asset protection plan. As with many aspects of financial planning, being proactive early is absolutely crucial, so contact us now.
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