When transitioning from residency to practice, you’ll encounter a lot of changes including a sharp increase in annual income. Sweet!
So let’s talk about insurance not sweet. But, hear us out.
You want to protect your income for you and your family, right?
If you have a spouse, children or other dependants, life insurance can help them remain in good financial shape if you pass away.
The two most common types of life insurance are:
term insurance (typically owned for 10 or 20 year terms)
and permanent insurance (coverage that never expires and can be used for both income replacement and estate planning.)
Term insurance is less expensive because the likelihood (and hope!) is that you won’t pass away within the specified term.
However, if you were to pass away then it would provide a sum to your family that could be used to cover obligations, like a mortgage or to fund goals, like your children’s post-secondary education.
Permanent insurance is a long-term investment that could appreciate in value over time.
It never expires and will ultimately pay out to your beneficiaries.
Now let’s talk about another type of insurance: Living Benefits.
As the name suggests, these policies can pay benefits while you're still alive.
As a physician, you understand better than most how common it is for an illness or injury to prevent someone from working at some point in their life.
With disability insurance, if you can’t work for medical reasons you’ll still benefit from a monthly income until you can or until you’re 65.
Other living benefits insurance covers critical illness and long-term care so you can ensure that, whatever happens, you’ll be financially secure.
Our MD Advisors are experts in advising physicians on insurance, such as how to manage risk and if you should own your policy personally or through a corporation.
We promise to make insurance as painless as possible! Speak to your MD Advisor today!
