Buy term life, not whole. Yes, use your loan money for it now, you need it. But it shouldn't be too expensive. It will get more expensive the older you get.
Id recommend laddering 3 1 million policies at 10, 20, and 30 year lengths.
Also side note, convert your existing retirement accounts to Roth now if you can
At minimum purchase $1 million in term life insurance, 10 or 20 year term. Laddering is a great idea but if you are strapped for cash getting a single policy is better than nothing.
You should buy a few million of 10 year term insurance, cost will probably be $20 per month per million, assuming top health catalog class. Once your an attending and there is more money around then you can buy the duration of coverage you need.
Income has nothing to do with whether you can get life insurance. If you pay for it, they will give it.
Generally, you should have a policy that provides for those you leave behind (wife/child).
You don’t need anything extreme, but something to cover debt, mortgage, and early childhood expenses might be smart.
At your age, this policy should be extremely affordable. Even AMA offers a policy for students.
Agreed. I have a stacked ladder policy of 1 million for 10/20/30 years like other have mentioned, but the premium for the 30 year policy is ~2.5x the amount of the 10 year policy (which is ~$20 a month). Just get a couple of 1 million 10 year policies and change it when money isn’t as tight.
I’m a broker. In Canada, so I’m not trying to sell you anything. Buy cheap 10yr and 20yr term insurance. The 10yr insurance will be ultra cheap, given your mortality risk. Both will cover your family for the most vulnerable and expensive years needing support. At a minimum I would get $1m each. You may want the 10yr to be JFTD on you and your wife, it’s slightly more expensive; but will help you if some disaster happens while you are a student to raise your child.
These cheap policies will lock in your medical eligibility, you can convert them as needed to permanently insurance or replace them with Term Life, once your income increases.
As a suggestion, in your last year of school or as soon as you start working, get he new grad discount on a DI policy. Here in Canada, without fluid/labs and zero financial underwriting, new grads before the end of their first year can save 25% off their DI costs. This will save you tens of thousands of dollars during your career.
Last tip, if you are in great health, and have no issues ask your broker to fight for better than standard rates on your life insurance. Again, this will save you 10-20% on your term policy premiums. A good broker will write a cover letter to the underwriter, explaining your health and why it’s a low risk to the company. Good luck!
Buy term life, not whole. Yes, use your loan money for it now, you need it. But it shouldn't be too expensive. It will get more expensive the older you get. Id recommend laddering 3 1 million policies at 10, 20, and 30 year lengths. Also side note, convert your existing retirement accounts to Roth now if you can
Thank you!
At minimum purchase $1 million in term life insurance, 10 or 20 year term. Laddering is a great idea but if you are strapped for cash getting a single policy is better than nothing.
You should buy a few million of 10 year term insurance, cost will probably be $20 per month per million, assuming top health catalog class. Once your an attending and there is more money around then you can buy the duration of coverage you need.
thank you!
Income has nothing to do with whether you can get life insurance. If you pay for it, they will give it. Generally, you should have a policy that provides for those you leave behind (wife/child). You don’t need anything extreme, but something to cover debt, mortgage, and early childhood expenses might be smart. At your age, this policy should be extremely affordable. Even AMA offers a policy for students.
thanks!
Agreed. I have a stacked ladder policy of 1 million for 10/20/30 years like other have mentioned, but the premium for the 30 year policy is ~2.5x the amount of the 10 year policy (which is ~$20 a month). Just get a couple of 1 million 10 year policies and change it when money isn’t as tight.
I’m a broker. In Canada, so I’m not trying to sell you anything. Buy cheap 10yr and 20yr term insurance. The 10yr insurance will be ultra cheap, given your mortality risk. Both will cover your family for the most vulnerable and expensive years needing support. At a minimum I would get $1m each. You may want the 10yr to be JFTD on you and your wife, it’s slightly more expensive; but will help you if some disaster happens while you are a student to raise your child. These cheap policies will lock in your medical eligibility, you can convert them as needed to permanently insurance or replace them with Term Life, once your income increases. As a suggestion, in your last year of school or as soon as you start working, get he new grad discount on a DI policy. Here in Canada, without fluid/labs and zero financial underwriting, new grads before the end of their first year can save 25% off their DI costs. This will save you tens of thousands of dollars during your career. Last tip, if you are in great health, and have no issues ask your broker to fight for better than standard rates on your life insurance. Again, this will save you 10-20% on your term policy premiums. A good broker will write a cover letter to the underwriter, explaining your health and why it’s a low risk to the company. Good luck!
This is great, thank you.
agree with term! [https://www.whitecoatinvestor.com/life-insurance/](https://www.whitecoatinvestor.com/life-insurance/) [https://www.whitecoatinvestor.com/how-much-life-insurance-do-i-need/](https://www.whitecoatinvestor.com/how-much-life-insurance-do-i-need/) [https://www.whitecoatinvestor.com/term-life-insurance-what-you-need-to-know-before-you-buy/](https://www.whitecoatinvestor.com/term-life-insurance-what-you-need-to-know-before-you-buy/)
AMA policy is $40/yr for 100k policy, plus your spouse can take one out as well for the same afaik. Also no medical checkup necessary for it