"Crap happens." It's inevitable. That's why it is important to protect you and your family when "crap" should strike. No matter how "diversified" your portfolio is, no matter how cautious you are with your money, no matter how great a saver you are, all it takes is one crappy incident to ruin you and your family forever. That's why carrying the right kind and amount of insurance is importance.


When I speak of insurance, I'm not talking about that "extended warranty" from Best Buy on your new laptop which can be replaced should it break.
I'm talking about  house fires,  dozing off at the wheel post-call, or a bicycle accident that leaves you with a broken wrist which derails your budding career as a surgeon-- all these scenarios would be disastrous and would require much more to cover the losses.

As a rule, you should insure against huge disasters that you would not be able to afford to live without or be able to replace out of pocket. If it breaks, you can go without your flat screen TV, but if you get in a car wreck, how are you going to get to work? As a medical student or resident, here are the following types of insurances that you must consider:

• Health Insurance: Being a doctor likely makes you a poorly compliant patient who cringes at the thought of having to go to your own doctor. Nevertheless, this is a must for you and your whole family.

• Life Insurance: If you are single and your only dependents include a cat and sea monkeys, then you don't need it. If you have any humans who depend on you as their breadwinner or future breadwinner, this is an absolute necessity. Oh, and don't think that your hospital/school policy is enough. Those little policies pay out enough to cover "closing costs" (funerals are not cheap).

• Disability: The most valuable asset you have as a resident is your future earning potential.  On top of that, you are much more likely to become disabled than to die. So when it comes to Disability insurance-- GET IT!
  

• Homeowners/Renters Insurance: If your living space is struck by fire, theft, water, suicide bomber, or some other disaster, would you be able to replace everything out of pocket? I don't think so.

• Auto Insurance: Very few people can afford to lose their car.

It would be great if we could all live life happily-ever-after or if a big government could coddle us and shield us from harm like an over-protective parent.  But the fact is bad things will happen to good people and you have a responsibility to watch out for yourself and those you love. You see disasters every day in the emergency department and on the wards. Understand that you are not immune to "crap" and protecting you and your family from financial ruin in the event of a disaster is a must.

A more detailed outline of the different insurances available and how they relate to the medical student and resident can be found here: