2024 Guide to Life Insurance For Medical Professionals
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you are looking for life insurance for medical professionals, this article is for you.
What’s the point of having a 401K if you can’t enjoy it? If you’re a medical professional, there is life insurance for doctors that will protect your family and children from economic hardship in the event of your death.
You may have been saving up for retirement with an investment portfolio but it doesn’t do any good if your spouse or kids are left to struggle because they don’t know how to manage money.
Life insurance for physicians is available from many different providers so make sure to compare quotes before buying. The cost of this type of coverage may seem high but when compared to what would happen without such protection, it seems like a small price to pay.
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If you currently work in the medical field then life insurance is something to take seriously especially during these times of viruses and pandemics. The bottom line, you are more exposed now today in 2020 than ever before.
Overall, whether you are in your 20’s fresh out of school, or a seasoned medical professional in your 30’s or 40’s getting life insurance to cover your family is pivotal.
In fact, if you have a financial advisor they will tell you that this is a very important responsibility to take care of.
In other words, if you are in the medical field whether you are a Doctor, Registered Nurse, or Pharmacist, you probably went to school.
Subsequently, you may have student loans that may be your parent’s co-signed. This is a very good reason for getting life insurance to protect them.
In addition, if you have a family that depends on you, then replacing your income would be a big reason to purchase a life insurance policy.
All and all, medical professionals need to protect their loved ones as much as they protect OUR loved ones or us!
Above all, our medical professionals everyday go far and beyond to make sure we all have the best medical treatment available. I would like to take this moment to say thank you for all you do. In addition, what you have had to overcome during the COVID-19 pandemic. You are our TRUE HEROS in this challenging time!
– Danny Ray
Affordable Life Insurance For Medical Professionals
Ok, if you are here its because you have finally realized that you have some things to protect in the event you are no longer with us. You may have spent years getting a medical education and now are in debt.
For example, you might have questions like:
How much life insurance should a doctor have? OR, What is the proper amount of life insurance that I need?
These are all great questions. We will get into this deeper in this article. Specifically, the best time to purchase life insurance.
When you buy insurance to protect one’s family from the financial burden of debts, or income loss its important to know what are the most affordable ways to do that.
With this in mind, term life insurance is by far the most affordable.
You can pick an allotted time to protect yourself. For the most part, an established medical professional will want to protect the most time amount of time at the lowest cost.
In the hopes that the kids are being grown, the house is paid off, and retirement is in your sights. For this, a 30-year term policy would work.
This type of life insurance coverage summarizes the most important part of the coverage, family! Also, if you are asking “how much life insurance do I need”, the best way to start is at least 10 years of income.
However, if you are in your 50’s and have been in the professional medical field for a long or shorter period of time, then you may only need a 20-year term.
How Much Life Insurance Should A Doctor Have
This will all depend on where the doctor is in his career for the simple reason that early on there is debt versus later with assets and family to protect.
For instance, the average doctor leaves medical school with $196,520 in debt from the most recent data from the Association Of American Medical Colleges.
That is a lot of debt to leave if you suddenly pass away. What if your parent’s co-signed these loans? They would be responsible!
In this case, a $250,000 term policy would cover this. This can be accomplished very easily with no medical exam term.
However, you are probably now in your late 20’s and early 30’s. You may even be starting out a family. If this is the case then we need to focus on protecting them over the next few decades.
How much life insurance do I need as a physician?
Above all, most doctors need $2 million to $3million in life insurance and in some cases up to $5million. This is pretty standard for life insurance policies for doctors. This is in some cases in a combination with term life and whole life insurance products.
Term life insurance will be for coverage protection whereas the whole life insurance would be for cash accumulation in addition to the death benefit.
Term Life Insurance For Physicians
Overall, level term life insurance or “Pure Term life insurance” offers the most affordable protection for your income years as a physician and medical professional.
Again, getting this type of doctor benefits life insurance will comfortably fit your budget.
Not only will this type of policy take care of funeral expenses, high credit card debt, but it will straighten out your financial life today that will affect your family tomorrow.
Above all, you want to get this as early as possible. As a result, you will lock in youth and health for the most inexpensive way to purchase doctors’ life insurance.
Whole Life Insurance For Physicians
As a life insurance professional, these types of policies are a lot of fun to put together for the simple reason that it’s more for tax-free income than a death benefit.
Overall, our doctor and medical professional clients almost always have a mix of term life, whole life, and long-term care and or disability insurance.
As a result, you have the term for “If you die”, Whole life for “when you die” and long-term care and/or disability insurance for before you die.
In addition, the whole life policy if used with paid-up additions or used as an infinite banking strategy can provide tax-free income or the capital to start a business after retirement.
Best Life Insurance Companies For Doctors
When looking for the best carriers for our medical professional clients they have to go through our vetting process. Above all, the most important thing we measure is customer service.
We really focus on this because this is what your family will deal with when you are no longer here or if you are filing a claim for disability or long-term care.
Some other articles would agree, such as white coat investor life insurance which is a great blog and contains material on this topic. They offer great information on the blog.
The next thing that is most important is the financial rating and the carrier’s payout history. Again, we don’t need a carrier that will knit pick when it comes time to pay.
After all, they took money every year with no hesitation, now we expect them to pay as such!
Here is the list of carriers we have great relationships with that will offer A+ service across the board.
Term Life Insurance
- AIG
- Prudential
- Protective Life
- Banner Life
- John Hancock
- Lincoln Financial
- Mutual Of Omaha
- American National
Whole Life Insurance
- Foresters
- American National
For Long Term Care/Disability:
- Principal Financial
- Mutual Of Omaha
As you can see, these are all top-tier life insurance carriers. Above all, this is very important to us when offering the best products to our medical professional clients.
Who Is AMA Life Insurance
The American Medical Association (AMA) is a membership that is offered to over 1 million physicians to negotiate life insurance prices. However, for the past decade, they have been underwritten by New York Life Insurance company.
They offer level terms and preferred term life to its members. However, they are very limited to what they offer clients.
We on many occasions have been able to save our clients money on comparison but most importantly, give better value. New York Life has very stringent underwriting. Above all, if you have health issues then they definitely will not be the best option.
Membership does have its privileges, but when it comes to coverage for your family’s protection, they should be a distant option.
FAQs
Yes, medical professionals should consider the amount of debt they carry, potential future earnings, and the financial impact of their loss on family or business partners.
Rates are generally based on personal health and lifestyle. The demanding nature of medical professions can be a factor, but it doesn’t necessarily lead to higher premiums.
High-stress jobs can impact personal health, which in turn may affect life insurance premiums. However, this is evaluated on an individual basis.
Both term and whole life insurance can be suitable. Term life might be preferred for its affordability and simplicity, especially for early-career professionals.
Coverage should be enough to cover debts, provide for dependents, and replace income. A common recommendation is 10-15 times the annual income.
Group policies can be a good starting point but may not cover all needs. An individual policy can provide additional coverage tailored to personal circumstances.
Yes, if you have significant student loan debt, especially if co-signed, consider enough coverage to ensure debts are not a burden to your family.
Many policies offer disability riders, which are beneficial for medical professionals considering the physical demands of their job.
Compare different policies, consider professional discounts, and work with an insurance agent or broker who understands the specific needs of medical professionals.
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Conclusion
If you are working in the medical field, then life insurance is something to take seriously. You’re more exposed now than ever before. Get a quote from us today and make sure that your family will be taken care of should anything happen to you.
