Because the most important people in your life will depend on it, life insurance is one of the most significant purchases you will ever make. Yet, unlike purchasing a home, car, or computer; most people are completely unfamiliar with the critical questions they should ask before choosing a life insurer. In fact, most people spend far more time researching for a vacation home.
At DrDisabilityQuotes.com, we want you to make the most informed decision possible when it comes to this essential part of your financial foundation. Choosing a life insurance company is all about the firm’s long-term strength and stability.
When you purchase life insurance, you are not just buying the coverage itself. You are also buying the experience, financial strength and services of the insurance company.
Individual life insurance plays an integral role in helping Residents, Fellows & Attendings fulfill their lives, not only by removing some of the “unknown,” but also by providing tax-smart wealth transfer opportunities. DrDisabilityQuotes.com’s wide range of insurance options- including whole life, universal life, variable universal life, and term life insurance- help meet these objectives. The distinguishing difference between these types of insurance is the amount of market exposure (variable universal life having the most) and the price (term being the least expensive in the short term).
Term Life provides death benefit coverage for a fixed rate of premium for a limited period of time. Time periods are typically 10, 15, 20, 25 and 30 years. Rates are usually guaranteed for the chosen time period. After the period expires, the previous rates are no longer guaranteed and the rates increase substantially. Term Insurance is the least expensive way to buy life insurance and is ideal for Residents, Fellows and Attending Physicians.
Term Life - Return of Premium (ROP)
A Return of Premium Term is insurance that pays your premiums back at the end of the level premium period you select. As long as you live to the end of the term, you have the option to get your money back: guaranteed and tax free. At the end of the level premium period, you may choose to surrender your policy for cash value - guaranteed to be equal to the premium you've paid over the years. Or, you can take advantage of other options to extend your coverage.
Universal Life Insurance is a type of permanent life insurance where excess premium payments above the cost of insurance is credited to the cash value of the policy. Each month the cash value is debited the cost of insurance charge and expenses, then credited with interest. The interest rate is determined by the insurer, but has a contractual minimum. Premium payments are flexible and the policy remains in force as long as there is sufficient cash value to pay the cost of insurance and expenses.
Indexed Universal Life
A type of Universal Life Insurance where the earnings credited to cash value are based on a financial index such as the S&P 500 stock market index. This differs from standard Universal Life Insurance where the cash value is credited with interest based on the insurance companies investment portfolio.
Whole Life Insurance
Whole Life is a type of permanent life insurance that remains in force for the insured’s whole life and generally requires premiums to be paid every year into the policy. Like Universal Life, excess premiums are credited to cash value where insurance costs and expenses are deducted and interest or dividends are credited. If premiums are paid every year the insurance death benefit is guaranteed for the life of the policy.