How Much Life Insurance Should a Physician Consider?
Start with the financial responsibilities that would remain if you died, their duration, and resources available to meet them. Include household care as well as earned income. A salary multiple is a rough prompt, not a personalized coverage recommendation.
By Navid Lalezari · Author
Reviewed by Navid Lalezari
Last reviewed
In this guide
List the people and responsibilities
Identify who relies on your income or unpaid household work. Consider ongoing living costs, childcare, a mortgage, education goals and other commitments. Separate obligations that disappear at death from those that remain; do not automatically assume every student loan or business debt must be paid by family.
Sources:[1]
Give each need a time horizon
Temporary needs may end when children become independent or a debt is repaid. Others may last longer. Ask how the duration of coverage matches each need and what happens if the assumed timeline changes. Term and permanent insurance serve different planning purposes.
Read next: Term vs. Whole Life Insurance: Benefits, Costs, and Family Protection
Sources:[2]
Inventory existing resources
List insurance already in force, accessible savings and any resources your household could realistically use. Verify employer life coverage and what happens when your job changes. Keep uncertain future earnings or assets separate from dependable resources. Avoid counting the same asset toward several needs without explaining the tradeoff.
Sources:[1]
Review affordability and beneficiaries
Bring the needs list and budget to the advisor and ask for the assumptions behind any recommended amount. Revisit the plan after a birth, marriage, new mortgage or career change. Confirm beneficiary arrangements through the insurer’s process, with legal guidance where appropriate; a worksheet does not amend a policy.
Read next: A Life Insurance Planning Checklist for Physician Parents · How to Organize a Life Insurance Beneficiary Review
Sources:[3]
Where to go from here
These next steps are educational and have no cost or obligation. They do not start an insurance application or begin coverage.
- Check My Options
Tell Drs Choices what you are weighing and request a conversation about your situation.
- Compare Policies
See how the coverage types and policy terms on this page differ side by side before you decide.
- Start Your Plan
Build a discussion brief from your own numbers. No account or email is required.
Sources
Drs Choices summarizes and compares these sources on this page. Each entry links to the original if you want to verify the wording yourself.
NAIC: Life insurance consumer guide
View original source for “NAIC: Life insurance consumer guide” (opens in a new tab)NAIC: Types of life insurance
View original source for “NAIC: Types of life insurance” (opens in a new tab)NAIC: Reviewing life insurance and beneficiaries
View original source for “NAIC: Reviewing life insurance and beneficiaries” (opens in a new tab)