Life insurance

[label_receipt]

I am about to begin intern year in a few weeks and will be in training for a total of 6 years (IR). My wife will be an anesthesiology attending starting the day I begin the radiology portion of my residency, one year from now. I've already obtained disability insurance, set-up a Roth IRA and will be pursuing PSLF via a direct consolidation loan ($280k) that is currently being processed (My wife and I file taxes separately).

We have no children, and I am wondering whether or not life insurance makes sense in this particular situation. If I die, we have no children and she is making a large salary. Once we have a child it seems like life insurance might be a good idea. The fact that I think that now makes me wonder if getting life insurance now will just be cheaper in the long run or not.

Advice?

[Scott at MD Financial Services]

Once you have a need then certainly get it but until then it appears it should only be purchased if you 'want' it since there is not much if any need at the moment.  Nice job on getting your disability insurance else taken care of, many wait until they can't purchase it due to medical issues and medications they have taken.

[jfoxcpacfp]

label_receipt wrote:

I am about to begin intern year in a few weeks and will be in training for a total of 6 years (IR). My wife will be an anesthesiology attending starting the day I begin the radiology portion of my residency, one year from now. I’ve already obtained disability insurance, set-up a Roth IRA and will be pursuing PSLF via a direct consolidation loan ($280k) that is currently being processed (My wife and I file taxes separately).

We have no children, and I am wondering whether or not life insurance makes sense in this particular situation. If I die, we have no children and she is making a large salary. Once we have a child it seems like life insurance might be a good idea. The fact that I think that now makes me wonder if getting life insurance now will just be cheaper in the long run or not.

Advice?

Click to expand...

Agree with Scott @ MD Financial Services that there is no great need for life insurance at this point unless you are getting a late start pursuing your medical career. Because rates go up with age, the older you are, the more likely you are to develop chronic conditions like high cholesterol and high blood pressure.

Given that your wife will be the main breadwinner for the next 6 years, it seems to me that having her insured would be the bigger priority, especially if you plan to have children during that time.

[conniebird]

jfoxcpacfp wrote:

label_receipt wrote:

I am about to begin intern year in a few weeks and will be in training for a total of 6 years (IR). My wife will be an anesthesiology attending starting the day I begin the radiology portion of my residency, one year from now. I’ve already obtained disability insurance, set-up a Roth IRA and will be pursuing PSLF via a direct consolidation loan ($280k) that is currently being processed (My wife and I file taxes separately).

We have no children, and I am wondering whether or not life insurance makes sense in this particular situation. If I die, we have no children and she is making a large salary. Once we have a child it seems like life insurance might be a good idea. The fact that I think that now makes me wonder if getting life insurance now will just be cheaper in the long run or not.

Advice?

Click to expand…

Agree with Scott @ MD Financial Services that there is no great need for life insurance at this point unless you are getting a late start pursuing your medical career. Because rates go up with age, the older you are, the more likely you are to develop chronic conditions like high cholesterol and high blood pressure.

Given that your wife will be the main breadwinner for the next 6 years, it seems to me that having her insured would be the bigger priority, especially if you plan to have children during that time.

Click to expand...

Johanna et al -

I am trying to figure out if I need to buy term life - I have one through my job now but it's not much (and I don't pay extra for it). Currently no dependents but hopefully kiddos will be in the picture very soon. I am a bit older at this stage than most - just turned 39. So I am thinking maybe I should buy some now since I am super healthy now. Thoughts?

[conniebird]

Thanks. Yeah would only need 20 years at this point. Don't "need" it now but will in a year or less.

[Scott at MD Financial Services]

Conniebird, at 39 you are about $40 per month on a $1 million 20 year term, its cheap, if you need it within the year just get it done and take a potential health issue due to sickness or accident out of the equation.

[jfoxcpacfp]

conniebird wrote:

Johanna et al – I am trying to figure out if I need to buy term life – I have one through my job now but it’s not much (and I don’t pay extra for it). Currently no dependents but hopefully kiddos will be in the picture very soon. I am a bit older at this stage than most – just turned 39. So I am thinking maybe I should buy some now since I am super healthy now. Thoughts?

Click to expand...

So, according to Scott's quote, it will cost you < $1k for 2 years of term and it would be money well spent, imo, since you are planning on children in the near term. Rates may go up when you turn 40 (Scott?) so be sure to check that out and save while you're in your 30s, if applicable.

[Scott at MD Financial Services]

At 40 the rates would be around $44.  Most people think there is a magic age where the rates start to jump/step up but the reality it is a pretty gradual slope until the rates are locked in.  As example 35-36 is $32 and 45 is $71 so in general the rates increase at about 10% per year in the 30's and 40's for 20 year contracts.

[VagabondMD]

If the OP does not enter into any joint encumbrences that are contingent on his future earnings in any way (ie. children, mortgage), he probably does not the life insurance.

 

[Hatton]

Personally conniebird I would be reluctant to buy life insurance prior to a positive pregnancy test.

[Scott at MD Financial Services]

If you wait just know if you are pregnant then some carriers are reluctant to offer coverage once you are in the 3rd trimester.  In addition if your labs start get a little out of whack the carrier will count that against you along with the baby weight put on.  They have a tendency to underwrite as a 'snapshot' in time.

[Hatton]

Being an Ob/gyn some people never become pregnant. You never know if you will have some big infertility problem until you try.  She has life insurance through her work.  She is still in a cheap age.  I would buy it when the test is positive unless I needed it for a significant other now.  Early in the  pregnancy no lab test will change except the hcg.