In Canada alone, there are at least 111,843 doctors according to the Canadian Government. Life insurance is a topic that has been hotly debated for a long time, with many wondering why a doctor would need life insurance. It is important to understand that life insurance is the lifeline that helps a doctor’s family to get financial security. It can also provide financial security for a business debt should the insured die. Doctors understand that losing a loved one is not easy, and when a financial burden is added to the grief the pain can be unbearable.  For any financial plan especially for physicians, life insurance is particularly important.

Life Insurance Tailored for Medical Professionals

Life insurance is divided into two, including term and permanent (whole and universal). Term life policies give coverage for a given time frame of about 10 to 20 years; while permanent protect consumers for the rest of their lives. Permanent policies tend to have a higher premium, many times double that of the term policy. Because whole and universal policies are expensive, most financial advisers recommend the term policies.

Life covers should take care of any outstanding debts, funeral expenses, and long-term goals such as seeing the kids to university level.  In Canada, most term life policies are renewable. The plan can also be converted to a permanent plan without the need for a medical exam. The rates vary from one company to another, with most of them offering preferred rates. These rates may lower the insured’s premiums, but by 30 percent if the insured is in perfect health and a great family health history.  With the coverage being affordable, there are certain factors that affect the rates such as age, smoking status, and gender.

When it comes to getting life insurance for a physician in Canada, it is important to deal with an insurance company that specializes in that field. In Canada, one such company is Levine Financial Group, which is partnered with numerous hospitals and medical associations to provide exceptional plans for life, disability and critical illness insurance for doctors and physicians.

Doctors are the breadwinners of many families. As such, life insurance is designed to offer a safe landing for their families in case of their death, and the family has to survive without the income it was used to. Unless the doctor has a spouse who earns more than they do, then life insurance is inevitable.

Integrating Life Insurance Into your Financial Plan

 Life insurance coverage can come handy in helping you build your wealth through income strategies and tax advantage. Doctors need to think ahead of the estate tax. You cannot tell what tax rate and exemptions will be upon your death. For that reason, it is vital for a doctor to invest and spend less and amass liquidity in terms of life insurance to cater for the estate tax. Life insurance can propel a friendly transfer of estate assets including and not limited to businesses, home, and real estate holdings. Upon your death, there won’t be a need to sell family business or real estate to pay to the estate tax.

For some, term insurance may just be the go-to solution, while others may opt for the whole life or some of the variants. Others may want to have a combination of life and whole insurance. What’s important is to ensure the family is protected first should the unthinkable happen. As much as you are working hard to protect the health of patients, it is important to have life insurance protect the wellbeing of your family. Choosing the right life policy means you get to preserve everything you worked so hard for and everything your family depends on to lead a comfortable life.

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