Disability + Life Insurance as Med Student?

[kl323]

Hey all,

I've been getting quite a few letters telling me to buy life and disability insurance. Has anyone done so? Is this something I should just think about later on?

Thanks!

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[rph3664]

Hey all,

I've been getting quite a few letters telling me to buy life and disability insurance. Has anyone done so? Is this something I should just think about later on?

Thanks!

You do not need either unless you have dependents. And if you do purchase life insurance, get term, NOT whole life! You don't buy life insurance, you rent it.

 

[phospho]

You do not need either unless you have dependents. And if you do purchase life insurance, get term, NOT whole life! You don't buy life insurance, you rent it.

I agree... get term life insurance. Also, if I were you, I'd still get it even if you don't have dependents yet. It's extremely cheap right now since you're so young, and you can get one for 30 years. After 30 years, you're gonna have saved enough money to not need it anyways.

Start with your auto insurance company and see if they offer any competitive rates (since they'll give you a discount on your auto insurance if you have multiple policies). Look up the financial rating of a company before you sign anything. Google is your friend.

 

[rph3664]

I agree... get term life insurance. Also, if I were you, I'd still get it even if you don't have dependents yet. It's extremely cheap right now since you're so young, and you can get one for 30 years. After 30 years, you're gonna have saved enough money to not need it anyways.

Start with your auto insurance company and see if they offer any competitive rates (since they'll give you a discount on your auto insurance if you have multiple policies). Look up the financial rating of a company before you sign anything. Google is your friend.

👍

Do not buy insurance from any company that does not have an A. M. Best rating of A+ or better.

 

[Bacchus]

I bought life insurance simply because my undergraduate loans (private) are significant and my parents graciously cosigned for them.

 

[kl323]

Thanks for the advice! I'll consider looking into it.

 

[MR Insurance]

Another tip - (Especially with Disability insurance) Consider going with a Graded premium option if available.

Most insurance companies offering good quality Disability insurance will only begin offering to senior medical students.

Even more important than locking into the low premiums is medically qualifying for coverage. Graded premium will allow you to put the coverage in place, irrevocably, at an incredibly affordable price - then level the premiums at a later date, once your financial situation is fully stable.

Something worth double checking - I'm fairly certain that student loans are forgiven if you were to die prematurely. Unless your parents cosign.

 

[Bacchus]

Another tip - (Especially with Disability insurance) Consider going with a Graded premium option if available.

Most insurance companies offering good quality Disability insurance will only begin offering to senior medical students.

Even more important than locking into the low premiums is medically qualifying for coverage. Graded premium will allow you to put the coverage in place, irrevocably, at an incredibly affordable price - then level the premiums at a later date, once your financial situation is fully stable.

Something worth double checking - I'm fairly certain that student loans are forgiven if you were to die prematurely. Unless your parents cosign.

Federal yes, but Citi Financial needs all the money they can get 😉.

 

[MR Insurance]

Federal yes, but Citi Financial needs all the money they can get 😉.

Sounds right. Federal will be discharged and private loans become part of the estate.

They all need more than they can get, including Federal.

 

[LossForWords]

I got life insurance but mostly because I have a wife and a house. I got a $500,000 term life insurance policy for about $20/mo. It's great for what I need now, but I know I'll have to get more insurance once I have some kids and start making actual money post-med school. That's probably when I'll invest in a whole-life policy, but for now this term thing is all I need.

My wife went ahead and got disability insurance since her paycheck is pretty important now while I'm in school, but we'll almost certainly drop that after I'm in practice. Her company's disability will be sufficient then.

 

[45408]

Some schools provide term life insurance while you're a student. Check that out before you buy your own policy.

 

[Perrotfish]

You do not need either unless you have dependents. And if you do purchase life insurance, get term, NOT whole life! You don't buy life insurance, you rent it.

Why would a single person not need disability insurance?

 

[BigRedder]

We have disability insurance rolled into our bursar bill. Considering we are in a profession so tied to physical abilities (rare outliers notwithstanding), we all need to be insured against not being able to use our training. There are certainly careers for less abled physicians, but surgery probably ain't happening if you lose an eye.

 

[45408]

but surgery probably ain't happening if you lose an eye.

You could still do laparoscopic surgery...

 

[MR Insurance]

Some schools provide term life insurance while you're a student. Check that out before you buy your own policy.

Group policies, both with Life and Disability, are very rarely portable. Therefore, even if you are offered coverage through your program, it is still advisable to obtain your own coverage. Term insurance is dirt cheap, especially if you are healthy. Disability insurance is a bit pricier, but also much more likely to pay benefits. Look into graded premium options to keep cost down until your income increases to where you can afford the level premium.

 

[phospho]

Last week I got 1 million dollars - 30 year term - $890 a year through my auto insurance company (which subsequently gave me 5% off my auto policy)... I don't know if I'm allowed to give their name (since that's advertising), but let's just say that they're "on my side" 😉 very much worth it for me, especially since I know it will only get more expensive as I get older.

It's probably overkill right now, but it's going to be about $350/year more in just 2 years. I checked a few other websites before I went to them, just so I'd have an idea about the price. I get like 40 dollars off if I pay it annually.