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Do Physicians Get Enough From Their Life Insurance Benefits?

Do Physicians Get Enough From Their Life Insurance Benefits?

September 08, 2021

For many physicians, their first life insurance policy comes through their benefits package at work. Typically, it costs next to nothing and provides enough death benefit to cover one year’s salary. It’s a good start, but hardly enough to pay off the mortgage or cover a child’s college tuition. We can always discuss your life insurance needs, but during Life Insurance Awareness Month, take some time to ask yourself these important questions:

Is the death benefit on my current insurance enough to cover my family? That means all financial obligations, current and future. If you have children, do you expect them to go to college? The average tuition cost for a public four-year college is about $28,000 per year, or more than $110,000 total per child (not accounting for future inflation). Next, what about your home? Mortgage debt isn’t forgiven when you pass away. Will your family be able to afford to keep the house without your income?

What if I leave my job? Many group life insurance plans terminate if you’re no longer with your employer. That might not be a problem if you’re heading to a new job with similar coverage right away. But if you aren’t sure what your next move is — or you lost your job unexpectedly — you may have to deal with gaps in your coverage. Something more permanent through an individual life insurance plan could provide more lasting peace of mind.

What if my health changes? It’s easy to find a policy at a great rate when you’re young and healthy because a young, healthy person represents less risk to the insurance company. So what happens if you develop a medical problem? You’re likely to have a much harder time finding an insurance company that will offer a policy at a reasonable rate. Age and health play the biggest roles in life insurance premiums, so it’s best to get a policy early in life.

What if I need more from my policy? Like we said earlier, group term life insurance policies through your employer are a great start but sometimes just aren’t enough to suit your needs. Expanding your financial plan to include an additional, individual policy can expand what your life insurance can offer. Different types of life insurance policies can cover your business, provide long-term care benefits, or help meet other financial planning needs. 

Life insurance can be a simple way to find peace of mind for both you and your family. Give us a call (or an email) if you have questions about it – we’re here to help. Take some time this Life Insurance Awareness Month to learn about the types of life insurance available to you. Get an instant quote on our site or send us a message for a review of your existing policies and insurance needs.