Life Insurance for Physician Residents

Purchasing life insurance as a physician resident or while in a fellowship program is a very important decision. It is a perfect time, especially if you are married and have children. At this point in a career, there is small net worth or a net worth of zero or even less than zero. Student loans may disappear at death, but mortgage loans and consumer loans are assessed against the value of the estate. And, a surviving spouse most likely co-signs these loans.

There is never a greater need for large amounts of life insurance than during a medical residency, especially when you consider that you are within sight of a very high-paying lucrative career. Even though have not achieved that earning power yet. During residency is a perfect time to lock in a long-term life insurance policy. You are young and healthy, and the premiums are very low. In determining how much life insurance you can purchase insurance companies will take into consideration your income potential and realize it will grow significantly over the next few years

Should I buy individual life insurance as a medical resident?

• Term life insurance is the most affordable type of life insurance. It covers natural death and accidental death. It will never be more affordable than it is right now. Outside of a person’s unique health issues and lifestyle, one of the most significant underwriting factors that determine the cost of life insurance is age. So, the younger you are, the less you will spend on coverage. It is that simple.
• As physicians, you know better than most that an average life expectancy isn’t guaranteed. You do not have complete control over your future underwriting status. Sure, you may be perfectly healthy now, but what happens if you wait and become unexpectedly ill or are a victim of an accident? Not only will these situations add to the cost of life insurance later, but they may also prevent you from qualifying for life insurance coverage at all.
• You should never solely rely on group coverage. A group policy is better than nothing. But it’s contingent on your employment or association membership. Unfortunately, these are often subject to cancellation at any time, and premiums are not guaranteed and increase every year. Meanwhile, if you own your policy, you can keep it as long as you pay the insurance premiums. Remember, you own it!

Think about it! The purchase of life insurance, appropriately done, only needs to be done once or twice in your life. Now is one of those times.

What you choose to do at this stage depends on what life insurance you already have in force. If you are still healthy and haven’t picked up any bad habits, such as smoking, scuba diving, or rock climbing, or other hazardous activities, you still have lots of options. Term life insurance is the number one choice in the US. If you are currently partially insured with a smaller, 30-year policy, you now have the opportunity to buy an additional policy or two and keep the old one in place. You might want to consider laddering your life insurance. But if you currently have a shorter-term policy, now is probably the time to replace it with a longer-term policy.

Don’t go it alone! Strahan Financial Services works with a team of highly talented individuals committed to providing you with unmatched professional service, with over 250 years of combined experience.

Why Choose Strahan Financial Services, How We’re Different

• We are independent and not obligated to recommend specific companies.
• Our process is quick and efficient.
• We can find you the lowest cost policy for your unique medical background and family situation.
• We only quote fully guaranteed rates the full term of the policy and convertible at the end of the term.
• The quote received is 90% of the time, your actual cost.
• With so many life insurance companies active in the US, we represent the top 1% of American’s oldest and finest companies with an “A” rating or better.

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