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Life Insurance Planning for Physicians

Protecting Your Family's Future

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.

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“I have delivered many death claims during my 30 years of working with physicians. Never once did the family ever ask what type of life insurance my client had, just thankful that they had it.”
- Shaun McDuffee, Founder and CEO

The Purpose of Physician Life Insurance

Life Insurance:
Term & Perm

Types of Life Insurance

When it comes to life insurance, we encourage physicians to focus more on the amount of coverage than the type, though both are important. Insurance can help replace your current and future income in the event of you no longer being here to provide for your loved ones.

<p><strong>Term Life Insurance</strong></p>

Term Life Insurance

Term life insurance is like renting. You pay a monthly premium for a designated amount of time. If you pass away during this time, your family receives the death benefit. When the term ends, you can renew or find another policy.

<p><strong>Permanent Life Insurance</strong></p>

Permanent Life Insurance

Think of a permanent policy like buying instead of renting. As the policy owner, your plan stays with you for life, or as long as you pay for it. You’ll build “equity” in the form of cash value over time, similar to owning a home instead of renting.

How Much?

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.

Our Life Specialists

Shaun McDuffee

Shaun McDuffee, AEP, CLU, CHFC, CEPA

Founder, CEO, and President

Nick Paurus

Nick Paurus

Life Insurance Specialist & Financial Professional

<p><strong>Application Process</strong></p>

Application Process

Your health rating can impact the cost of your life insurance. Once you choose the carrier, we'll apply to get a health rating. Part of the application process involves a phone interview and labs, which are free and can be done at home. Once we have a health rating, we can explore different options based on pricing and your coverage needs.