Mark
12-09-2005, 07:13 PM
Yes, inexpensive term insurance is the answer for many doctors. But not for everyone.
Of course you know the primary purpose of life insurance: to replace your lost income and to provide for your survivors. You probably also know the conventional wisdom: Most people should buy term insurance (death benefits only) rather than pricier permanent life insurance (which adds a savings component) and invest the difference. If you follow this line of thought, term is all you need to provide for your family, and permanent life insurance is an evil plot hatched by greedy insurance companies.
But, according to some financial planners, there are situations where permanent insurance is a prudent purchase: when you need an extra tax-favored investment, when you're concerned about asset protection, and when you're looking to help your heirs with the high cost of estate taxes.
Read more: "Medical Economics" November 18, 2005
http://www.memag.com/memag/article/articleDetail.jsp?id=197565
Of course you know the primary purpose of life insurance: to replace your lost income and to provide for your survivors. You probably also know the conventional wisdom: Most people should buy term insurance (death benefits only) rather than pricier permanent life insurance (which adds a savings component) and invest the difference. If you follow this line of thought, term is all you need to provide for your family, and permanent life insurance is an evil plot hatched by greedy insurance companies.
But, according to some financial planners, there are situations where permanent insurance is a prudent purchase: when you need an extra tax-favored investment, when you're concerned about asset protection, and when you're looking to help your heirs with the high cost of estate taxes.
Read more: "Medical Economics" November 18, 2005
http://www.memag.com/memag/article/articleDetail.jsp?id=197565