Why Young Physicians Shouldn’t Ignore Life Insurance

As a young physician, you’re in the early stages of a challenging, yet rewarding career. You no doubt have a lot of things on your mind such as where you’ll practice in the future, if you’ll venture into a solo career, and how you’re going to pay back your student loans.

One thing you may have left on the backburner is financial protection in the form of life insurance. Believe it or not, it’s a smart choice for any young professional since early adulthood is the best time to consider a policy.

Positive outlook for life insurance

In recent years, more people are becoming aware of the importance of life insurance and what it can do for their loved ones. In 2014, over 27 million life insurance policies were sold in the U.S. In addition, a recent study found the following insights into people’s perceptions about life insurance:

  • 66 percent of consumers say they are at least somewhat likely to recommend life insurance to others
  • 77 percent of Millennials are likely to recommend owning life insurance
  • 86 percent agree that most people need life insurance.

The need for this type of financial protection isn’t an old wives’ tale. It’s a fact of life that shouldn’t be ignored.

6 reasons to consider life insurance

Even if you don’t have kids or are single and in good health, here are some other reasons why you may still want to consider life insurance:

1. Your rates could be significantly lower: Did you know that the earlier you purchase a life insurance policy, the cheaper it will be? The premiums you pay are based on your risk of mortality. It may sound grim, but because younger people generally have fewer health problems, their risk of death is low, resulting in lower rates.

According to the 2015 Insurance Barometer Study, Millennials overestimated the cost of life insurance by a whopping 213%. Lucky for you, with options like Quick Start Life through AAFP, your policy could cost as little as $0.14/day*.

2. You have other dependents: Remember, life insurance isn’t for you, it’s for those you may leave behind. A dependent doesn’t have to be a spouse or a child; it’s anyone who relies on your income for support. That includes anyone who needs special care or long-term medical attention.

You may have an aging parent who requires round-the-clock care or a sibling with financial difficulties. Life insurance is all about having peace of mind, knowing that those who depend on you will be taken care of in your absence.

3. Your employer-provided coverage may not be enough: If your job offers benefits like health coverage and life insurance, great! But keep in mind that it may not be enough to cover all of your loved ones’ needs should you pass away.

That’s why you should consider supplementing this coverage with an individual policy. As a member of AAFP, you can receive affordable group rates. In addition to being young and healthy, coverage through AAFP could cost you less than what you’re receiving from your employer.

Another thing to consider is what happens to your benefits if you quit or lose your job. Employer-sponsored coverage generally isn’t portable, which means you can’t take it with you if you get a new job. However, coverage through a group or association like AAFP does follow you, so you won’t have to worry about gaps in coverage.

4. You may leave behind debt and other expenses: Funerals can be expensive, and someone is going to have to cover these costs. The average funeral costs between $7,000 and $10,000, and you may not want to place this financial burden onto your loved ones. And let’s not forget that the median student debt load for physicians is $183,000.

A life insurance policy can be used to cover funeral expenses, debt and any other financial obligations you may leave behind.

5. You plan on starting a family: According the USDA, it costs $245,340 to raise a child to age 18 – and that’s not factoring in college tuition. If you plan on getting married or having children, you will need to make sure that their financial needs are covered should you pass away.

This is especially crucial if you’re the breadwinner in the family or have a stay-at-home spouse. You will need to consider if your family can get by without your income, and in most cases, they might not.

6. You may want to protect your practice: One day, you may want to own your own private practice. But consider this: how would your practice survive if you were no longer in the picture? Life insurance could be used to cover this type of business loss and ensure the continuation of your practice.


There you have it! If you’re a resident or a young physician, don’t ignore the need for life insurance. There is value in purchasing a policy early on in your career, and your loved ones will thank you for it.

Still not sure when’s the best time to buy a policy? Check out our decision tree to help you determine when’s the right time to get life insurance.


*For a female under age 25


Photo Credit: Shutterstock



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AAFP Insurance Services
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(800) 325-8166

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