Life insurance for physicians
Three things usually need sorting, and life insurance is not the most urgent one.
Physicians are generally straightforward to underwrite and often over-marketed to. The offers arrive during residency and rarely come with an explanation of what order to do things in.
The honest priority list starts somewhere other than life insurance.
Disability usually matters more
For a physician early in a career, the probability of a disability interrupting income is worth taking at least as seriously as death — and the earning power at stake is substantial.
Life insurance doesn't cover disability. If you only sort one thing, own-occupation disability coverage is generally the more urgent of the two. Sort both, but know which is which.
Student debt: check the loan type
Federal student loans are discharged on the borrower's death. Private loans are governed by their own contracts, and a co-signer or spouse may remain liable depending on the loan and the state.
So the debt question isn't "how much do I owe" — it's how much of it is private, and who else signed. That's the portion life insurance actually needs to cover.
Hospital group coverage has limits
- Usually a modest multiple of salary — often less than a family needs
- Generally ends when you leave the employer
- Often not portable, or portable at much higher cost
- May be based on base salary, excluding significant variable compensation
Buy while you're still training
Health and age are both better now than they will be, and a policy bought during residency with a conversion privilege preserves the option to add permanent coverage later without proving your health again.
Be sceptical of permanent policies sold to residents as investment vehicles. Term sized to real obligations, plus conversion, covers most situations at that stage.
If you're a partner or practice owner
- A buy-sell agreement needs funding, and life insurance is the usual mechanism
- Key person coverage, if the practice depends on specific individuals
- Personal guarantees on practice debt — check who they fall to
- Coverage required by a lender or partnership agreement
Common questions
Federal student loans are discharged on the borrower's death. Private loans follow their own contracts, and a co-signer or spouse may remain liable depending on the loan and state — that's the portion insurance needs to cover.
It's the cheapest and easiest point to get covered, and a conversion privilege preserves options for later. Be sceptical of permanent policies pitched to residents as investments.
It's usually a modest multiple of base salary, often excludes variable compensation, and generally ends when the job does. Treat it as a supplement to a policy you own.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.