Life Insurance for Orthopedic Surgeons
According to The Statistics Portal, the number of annual purchases of life insurance coverage in the past ten years has been on the decline, falling from 30.79 million to 28.04 million. One of the reasons why many people shy away from getting life insurance is because they are not aware of the benefits they stand to gain from it.
A life insurance policy is coverage purchased from an insurer which states that an insured person must make premium payments to the insurer for a specified period, and in return, the insurer pays back a lump sum known as benefits.
Why Do Orthopedic Surgeons Need Life Insurance?
Life insurance has many helpful and important benefits, especially for medical professionals. The following are reasons why you should have a life insurance policy.
Death Benefits Plus Living Benefits:
Traditionally, the lump payments are known as death benefits and paid to the named beneficiaries of the contract, who are usually the insured’s dependent family members for their upkeep after your passing. However, there are several types of policies which guarantee both death and living benefits. Meaning that you can take advantage of parts of your policy while you are still alive.
Future Plan for Your Loved Ones:
As an orthopedic surgeon, you need life insurance death benefits to protect the future of your loved ones after your passing, especially if you are a breadwinner. You definitely wouldn’t want to leave your family members in financial problems after you have passed on.
Flexible for Your Career Success:
A life insurance policy is especially suitable for you as an orthopedic surgeon regardless of your level. Either as a resident or a fellow, there are flexible policies which allow you to customize and amend your contract to meet your needs and occupational demands at each stage of your career.
What Kind of Life Insurance Policies are Available to Orthopedic Surgeons?
- Term Life Insurance: Term life insurance provides coverage for the policyholder for a specific period. It is about the most popular life insurance product in the U.S. Depending on the contract you buy, the coverage terms can range from 10 to 30 years and increase in 5-year increments.
Term life insurance pays death benefits to the beneficiaries of the contract if the insured passes on within the specified term in the contract. It comes with variations such as level term life insurance, renewable term life insurance, and convertible term life insurance.
- Universal Life Insurance: Universal life insurance, by its very nature, is the most flexible of all insurance policies you can find. Unlike term life insurance, universal life insurance provides coverage for a more extended period, which allows it to be considered as a permanent life insurance policy. It also gives an increase in cash value with accumulating interest as the policy grows older.
The most interesting thing about this product is that you can withdraw the increase in cash value via policy loans or partial surrender. Funds withdrawn can be used to settle any financial needs and are non-taxable. Its flexibility allows you to make adjustments to your death benefit and premium rate to accommodate your needs in the future.
iii. Whole Life Insurance: Whole life insurance is also a permanent life insurance policy that provides coverage for the insured for the rest of his or her lifetime. It also builds up cash value from which you can borrow via partial surrenders or policy loans. However, the funds borrowed must be paid back into the account in due time. Otherwise, the death benefits meant for your beneficiaries will be reduced as the funds borrowed are usually out of your due death proceeds. Unlike universal policy, a whole life periodic premium rate remains the same—it cannot be changed.
What Should You Look In A Life Insurance Policy?
Here are some things to consider as an orthopedic surgeon when you begin looking at different life insurance products:
Individual or Group Policy
Group Life Insurance: Many well-established medical outfits offer orthopedic surgeons under their employment a group life insurance policy. The premium payment is usually deducted from your paycheck. It is considered to be low-priced, and as such, offers limited benefits.
Individual Life Insurance: This is bought directly from a policy provider. As an orthopedic surgeon, you need an individual policy as a supplement to any group plan offered by your employers to allow you to tailor your insurance policy according to your personal and career needs.
Consider Your Age
Age is a major factor in a life insurance agreement. An insured person in his 50s is likely to pay a higher premium than the one in his 20s or 30s for the same contract. This is because the older you get, the higher your risk of death.
Consider Your Career Stage
If you are buying a term insurance policy at the early stage of your medical career, make sure that it comes with a conversion feature that will allow you change it to a permanent insurance policy if you wish to later in your life or career.
You are not restricted to only one policy—you are at liberty to buy multiple policies. However, you must buy wisely as life insurance is more about the quality of the plan than how many plans you have.
How Gold Coast Life Insurance Can Help
At Gold Coast Life Insurance, we understand how important your career aspirations and life goals are as an orthopedic surgeon. We can provide you with the policy that will help you achieve them all and at the same time secure the future of your loved ones.
We provide an inclusive platform that is accommodating to all. Whether you are a high-risk applicant or you have pre-existing conditions, we don’t discriminate. Take advantage of our free quote and experience the long-term benefit of your biggest asset as an orthopedic surgeon.