Life Insurance for Doctors

Posted on December 16, 2011 and updated January 23, 2012 in Insurance Types, Life Insurance Canada News, Permanent Insurance, Term Insurance 3 min read

According to the Canadian Government, there are 111,843 doctors working across the country.

GPs and family physicians make an average of $79 an hour, while specialists take in about $117 an hour. All of them would be better served by life insurance to protect the future of their families.

Life insurance can be broken down into two categories, Term insurance and Permanent Insurance.

Term insurance starts off lower in costs and increases as the insured gets older. The length of the term can vary. As a rule of thumb, the longer the term, the higher the initial premium, but the shorter the term, the lower the initial premium.

Most term life policies in Canada are renewable and convertible, which means the insured can renew the coverage without a medical, albeit at a much higher premium. They can also convert the coverage to a permanent plan without a medical exam. Term rates can vary significantly from company to company, and many companies offer preferred rates, which can lower the insured’s premium by as much as 30 per cent, but only if the insured happens to be in very good health and has an excellent family health history.

Permanent Life Insurance can be subdivided into three types of plans:

Term-to-100 insurance provides level premiums and lifetime protection. Term 100 policies generally do not build cash value. However, some companies offer reduced paid-up coverage if the insured wants to stop paying. Most Term 100 plans have increased in cost in recent years due to historically low interest rates, and many carriers in Canada no longer offer Term 100 coverage

Universal Life coverage offers lifetime protection with flexible premiums and most Universal life policies come with an increasing cost of insurance. For example, where the cost of insurance starts off lower and increases as the insured gets older, or a level cost-of-insurance option, which provides a fixed cost-of-insurance for the life of the policy. Similar to Term 100 coverage, most Universal Life, level cost-of-insurance policies in Canada have increased in price as a result of low interest rates.

Whole Life policies can be broken down into non-participating and participating policies. The former offer lifetime protection, guaranteed premiums, and a guaranteed cash value. However, these policies do not produce a dividend. The latter (participating policies) offer fixed premiums, lifetime protection, and guaranteed cash value, but they also produce an annual dividend, which allows the insured to participate in the profits of their life insurance carrier.

For more details on which life insurance policy is best for you, please contact us at 1-866-899-4849 or visit our Term Life, Whole Life or Universal Life Quote Pages

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Larry S
Larry S

Are the premiums on the OMA plan guaranteed for 5 or 10 years.

Can you email me …[email protected] a quote of $1.5M of Term 10 coverage, preferred and standard. I’m born …. and am a non smoker.

LSM Insurance
LSM Insurance

Hi Larry,

The OMA premium rates are locked in for the first 10
years. After 10 years you have the option to apply
with medical evidence for another 10 year locked-in guaranteed rate
OR continue without medical evidence and no action required on an
annual renewable basis. Plus, you can convert to lifetime Term to 100
coverage without medical evidence at any time before you reach the.

We will be in touch with a $1,500,000 Term 10 quote by email at preferred and standard rates. In most instances the rates are much lower with individual coverages.

LSM Insurance
LSM Insurance

Hi Alison,

Thanks for your question. We will be in touch by email. There are several variables that determine how much life insurance you needs including current debts such as line of credit and or mortgages, emergency fund etc.

You income and future income are very important especially if you have dependents. The attached needs analysis calculator https://lsminsurance.ca/calculators/canada/needs-analysis may be helpful Many insurance companies allow you to add a future insurability option which allows you to get additional coverage without a medical

Alison M
Alison M

I’m a medical student doing my last year of residency and looking to buy term life insurance. I’m curious if the amount of coverage I need to purchase should be based on my current salary or my potential earnings?