When it comes to life insurance, we encourage early-career physicians to focus more on the amount of coverage than the type. Both are important, but insurance can help replace your current and future income if you are unable to provide for your loved ones. Keep reading to learn more about your options, including whether you’d like to rent or buy your policy.

So, how much life insurance do you need?

The answer is going to depend on your unique situation and what stage you're at in your career.

For early-career physicians, the majority of your earning years are still in front of you. An easy rule of thumb is that for every $1 million of life insurance coverage you have, it will replace about $50,000/yr. of income to your family.

As a resident or fellow, you automatically qualify for $3 million of coverage based purely on the fact that you are a physician in training. We know this is already more than our example above based on how much you make as a resident, but it's important to remember that your income won’t be at that level for long. Ideally, we are looking to protect as much of your income (current and future) as we can at the lowest cost. With a majority of your earning years in front of you and others likely dependent on your income, having a solid risk management strategy in place early is the foundation for a stable financial future.

For physicians further along in their careers, we spend more time considering the type of insurance in conjunction with the amount of coverage. There are a variety of different life insurance products that can allow us to help maximize retirement income and provide cash during a long-term care event. Many people just think of life insurance as benefitting your loved ones when you pass, when in reality there are several different living benefits.

One of our specialists would love to connect with you to help you secure adequate life insurance and answer questions about your situation.