MD Preferred Blog

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What If You Failed Your Physical And Were Unable To Work?

Wednesday, July 25, 2018

By HMS and Associates-Insurance & Financial Consultants

Attention Medical Professionals: We need your help. We have a case study that we would like each of you to read and then answer the questions for yourself.

We have Dr. Jon a Cardiologist from Massachusetts who invested in a IUL (Index Universal Life Policy) strictly for growth. He invested $50,000 and paid the first month premium of $2,000 and called the agent and told him that he wanted to cancel the policy. The doctor didn’t want to tell the agent the real reason why, so here’s how the conversation went.

DR: Please cancel my policy and send my money back.
AGENT: Why do you want to cancel?
DR: Does it really matter why please just cancel my plan!
AGENT: I thought you liked the plan we got you?
DR: I loved your plan!
AGENT: What did you love about it?
DR: I loved the money manager and no charges for their expertise, no losses and tax-free income, but I still need to cancel the contract would you please cancel it already.
AGENT: If you loved the plan was it the amount you were putting away can you afford the $500 a week - $2,000 month?
(Doctor was quiet for a moment)
DR: Yeah, that’s it, I cannot afford this program!
AGENT: Can we reduce how much you’re putting away?
DR: No I can’t afford this, please cancel this already!
AGENT: What changed in this past month, a month ago you said that you could afford this?
DR: OK, I have no clue how I passed your physical last month, but every year I must take a physical for my job and last week I flunked it big time. I was diagnosed with throat cancer, needless to say I cannot afford this now, please cancel the plan.
AGENT: Oh, my god I am so sorry to hear that but you don’t have to cancel your policy I can actually file a claim and get you some money.
DR: File a claim? Are you insane, I’m not dead yet!
AGENT: You truly don’t understand what you own.
DR: I don’t care, just cancel my policy!
AGENT: Tell you what I am going to do, I am going to file a claim and if it does not pay out a benefit I’ll get you that refund, agreed?
DR: Just get my money back!

6 weeks later we deposited into the Dr. Jon’s account $734K of the $900K. The doctor picked up the phone called the agent and asked:

DR: What in god’s earth did you sell me?
AGENT: Well, while you were focused on tax-free income you never understood that this was the new type of life insurance with “Living Benefits”, where you could access the death benefit while you are still living and do not have to die.

Needless to say, Dr. Jon became our biggest cheerleader and he was all over the TV telling everyone that they need this new type of insurance. You can see the video below.

A year later his cancer is now in remission, he did not have pay back the $734,000, and he did not have to make any more premium payments.

Now that was a great result for the good doctor but it doesn’t always turn out that way. So, are you sure are protected? What would happen to you, your family or practice if you were to suffer a chronic or critical illness and you were unable to work? How long could you survive?

Do you currently have a “Living Benefits” Policy?

Do you know what “Living Benefits” is? If Not, living benefits is if you get sick and are unable to work – the insurance company will release money to help pay off all your debts. It also replaces your income 100 cents on the dollar, that’s guaranteed income until you die. If you’re married it will then be rerouted to your spouse until the day he or she took their last breath, that’s just a short description. If so, are you, your family and/or practice protected?

Let’s face it, we don’t know when something is going to happen to us now or in the future, we don’t have a crystal ball but if that happened to you how long would you be able to live without an income? Would your practice suffer because you can no longer work?

What about your family that rely on you the most? If you suffered a chronic or critical illness such as heart attack, stroke, cancer or were in a horrific accident. We have two questions for you. Would it be ok if we gave you 100% tax-free cash without you having to die and got the insurance company to notify you that you no longer have to pay any more premium payments on your policy would that be ok?

What would happen to your patients? In a time of crisis just like with your patients we’re sure that you want them to have the best care possible, right?

So, why shouldn’t you?

Please watch this video of the Doctor in our case study.

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