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Amount of life insurance for dual doctor couple?

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  • scbunker
    replied
    Maybe also consider other factors besides the 'cold hard facts' of who will need what kind of financial support.

    My wife is a PGY3 and we have no kids. She's not at the moment, but she'll more than double my salary as an attending. Thus, I don't need life insurance, right? She'll be perfectly fine financially without my income even if I got hit by a bus tomorrow.

    However, she has med school loans of over $200K. Our current plan is PSLF. Five years of payments will be as a resident and the other five years as an attending. That means she must work for a 501(c)(3) for five years after residency. She really wants private practice, but is willing to delay for a while in order to obtain PSLF. She can carry out that plan with or without my income.

    However, if I'm gone, I don't want her to be bound to PSLF. She may decide the best thing for her is to move back closer to her family, for example, where a 501(c)(3) may not be an option. I'd rather her have the freedom to do what she feels she needs to.

    So, I have a 10-year 250K policy on myself. If something were to happen to me, she can pay off the loans and not be bound to PSLF or high debt repayment.

    The mere math says I don't need life insurance, but I'm considering more than the math.

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  • conniebird
    replied
    Thousand of dollars a month? Doesn't sound like term. My 1 million dollar policy is $38 a month. I also get about $400k free through my job

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  • Allonblack
    replied
    Was just talking to someone this weekend about how they spend thousands of dollars a month on life insurance. Seeing what people are paying on this thread makes me wonder just how much of a staggering amount they must be insuring for. They didn't say it was term, but still.

    To answer OP (yearly expenses w/ kids)/.03+major non-recurring life expenses you want to pay for (ie college) = 2 dead parent insurance need (2DPIN). 2DPIN-living parent income = insurance need for hypothetically dead partner. So if you spend 60k a year and want 100K each for 2 college tuitions 2DPIN =2.2M Want to pay for 2 med schools. = 2.6M Spend 100k a year instead of 60 add an extra 1.3M.

    To restate with less numbers. Worth more dead than alive -> overinsured. Worth more alive than dead -> underinsured. Worth the same dead or alive -> just right.

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  • conniebird
    replied
    Women - recommend you get it BEFORE pregnancy. Lots of companies may temporarily  deny coverage or wait to make sure pregnancy was "healthy". I opted to sign up for it since I had squeaky clean labs/med history with getting disability coverage. Might not work for everyone, but timing wise was good for me - getting married and planning kids in short order. If it wasn't in short order I may have delayed it. But I know peeps that delayed and ended up with bad health issues and now they are stuck...

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  • Zaphod
    replied




    @noah,  If you die young,  your wife will remarry and children will have a new daddy.  How much do you want to support the happy new family?
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    Seriously, this comment comes up every time. Are we in middle school? If you die, you're dead, you're not going to care at all. If you love your spouse, why wouldnt you want them to find some happiness after? Life insurance is very cheap, you dont need 20 million of course, but this response always shocks me. Do you really think you'd be petty in death?

    I sure hope if I died that my wife and kids got to live out the life we had hoped/planned for and all had someone around to fulfill their needs.

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  • TheGipper
    replied
    Dual physician family, radiology and IM, 4 young kids.  Large home mortgage.  We may have over done it, but stacked term policies of 2M (30yr)/3M (15 yr) for me and 1M (30yr)/2M (15yr) for her.  Got policies in residency when rates were very cheap.  Will drop the 30 year policies eventually when reach FI. If had to do it over, would have gone with the "annual renewable" graded premium option, to start off with very low premiums, with plan to drop before break even point at 19-20 years.

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  • westcoaster
    replied




    Dual physician household with a 2 year old.  We carry 20 year term, 2 million for me, 2 million for her.  $100 a month for me, $60 a month for her.  Sure, either one of us could die and the other could make do without any money if we just worked the same or maybe a little more.  We however like to spend time with our daughter and would probably want to work LESS if the other person died.  Once our daughter and hopefully other future children would hit school age it might not matter quite as much.  I guess if we both die it is a jackpot for a daughter.
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    Same boat here and reached same conclusion independently. My wife and I essentially insure eachother to some extent. If/When we have another child, I think we would probably bump this up with an additional 20 year term 1 million policy each which would create a bit of a ladder effect. The more I think about a possible early death, the more I want insurance.

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  • Dicast
    replied
    Dual physician household with a 2 year old.  We carry 20 year term, 2 million for me, 2 million for her.  $100 a month for me, $60 a month for her.  Sure, either one of us could die and the other could make do without any money if we just worked the same or maybe a little more.  We however like to spend time with our daughter and would probably want to work LESS if the other person died.  Once our daughter and hopefully other future children would hit school age it might not matter quite as much.  I guess if we both die it is a jackpot for a daughter.

    Leave a comment:


  • lernd
    replied
    I think one thing to consider if there are children involved is the added expense of child care in a single-parent househould.  Could the single parent still work full time with young children (particularly the schedule of an MD or anyone else in 24/7 healthcare)?

    Leave a comment:


  • childay
    replied
    We are dual physician, one child.  Have 1M policy on both of us.  Consider if you both die.  If we did not have children there would be no need for the term life.  If you are planning on kids go ahead and get it now.  We will probably cancel the policies (and our disability policies) as our NW increases and we are able to self-insure.

    Leave a comment:


  • jz
    replied
    @Noah,  If you die young,  your wife will remarry and children will have a new daddy.  How much do you want to support the happy new family?

    Leave a comment:


  • Noah
    replied
    The issue I have is that it is so cheap, why not get a little bit more? Also why not get a policy early in case you become uninsurable or develop a pre-existing condition even if you don't need one now but will need one in the near future? Think about what you do as a physician in your MDM section. I often write "low suspicion for MI but can't r/o CAD etc." This is true but I can only imagine that insurance companies can grab on one of any number of medical records to increase rates or make it more difficult to get coverage in the future. I tried to get a 1 million 20 year term policy for this very reason as it would cost me $31 a month. Unfortunately I was put into a high risk group since I just went on a scuba diving vacation and answered the diving questions truthfully, ended up deciding not to move forward with the policy.

    Why save $20-$50 a month now when it could make life so much easier on your family and spouse if something were to happen? There are much easier ways to save an equivalent amount through alterations in daily spending.

    Leave a comment:


  • jhwkr542
    replied
    Pathologist here, wife is a pediatrician. I'm finishing up fellowship in 2 mos (!!). 2.5 kids. I'll probably get a $1M policy for myself and none for her. She'll struggle to keep up with expenses on her salary once we get finally settled into a new home in a few years. Nothing on her because I'd be able to stay afloat financially. Agree with WCI. It depends on your lifestyles, relative incomes, and maintaining it once either one passes.

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  • DoubleMDs
    replied
    We are dual physicians. We carried no life insurance until we had a kid. Then we got 250,000 on her and 500,000 on me (basically enough to pay off remainder of loans, go 6 months without working if absolutely necessary and still have some nest egg leftover). Policies are 20 yr term but hopefully won't even need them for that long. For less then $50 a month it's not exactly a huge expense anyway. Really all depends on your lifestyle and what you think one or the other would need.

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  • EH
    replied
    I'm not dual physician, but agree with above - I'm not bothering until there are kids. I can live off my salary just fine, but do have a free 4x salary policy from work that would allow my lower paid spouse to stay in our house if I died. I'll have to re-evaluate if we have kids. We live in a very HCOL area though so I do know some that would definitely need life insurance sans kids just to carry the mortgage on two physician salaries.

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