Life insurance probably doesn’t rank high on your list of priorities, but it should. Here are three reasons why a medical student should consider purchasing life insurance.
1. Your student loan debt may be someone else’s responsibility
While federal student loans are discharged at death, private loans may not be. The co-signer on any private loans you have may become liable for that debt if you should die. In some cases, repayment of those loans may be accelerated putting an unexpected financial burden on your co-signer.
Life insurance can be a cost-effective way to help protect a co-signer financially in the event of a medical student’s death. Term life insurance generally offers the best value, offering high amounts of coverage at lower initial premiums. A term life insurance plan will pay a cash benefit to your co-signer if you die during the term of the policy and you name the co-signer as your beneficiary. This is a straightforward way to protect your co-signer from the financial burden of your private loans.
2. Others depend on you
You may not be earning an income while you’re in medical school, but the financial implications of your premature death can have a negative impact on your family. In the event of your death, life insurance can help protect your loved ones from your current debts (medical student loans, credit card balances, car payment), provide for living expenses, or cover end of life expenses.
Term Life Insurance is an affordable way to get the protection your family may need in the event of your death. Buying life insurance now, when you are younger, means you will spend less on coverage. Securing life insurance as a medical student doesn’t have to strain your budget, there are cost-effective life insurance options to fit your needs.
3. Your family is invested in your education
Student loans aren’t the only way that you may be paying for expenses associated with your medical education. Parents and family members might be helping to finance your education through various methods, including home equity credit and 401(k) loans. These debts don’t end with the death of a student and repayment can become burdensome.
Term life insurance offers an affordable solution for you to help provide financial protection for your family. Having even a small amount of life insurance can help protect your family in the event of your death.
Partner with a trusted source for insurance
It’s not enough to find someone who sells insurance; your personal, professional, and financial circumstance won’t benefit from off-the-shelf, one-size-fits-all, products. It’s important for you to find insurance specialists who understand the medical profession and can offer you best-in-class products and services that meet your insurance needs now as a medical student and in the future when you’re a practicing physician.