I’m a 28 year old female resident physician with no kids, never smoked, BMI of 23, and no chronic health issues. I was quoted $2,205 plus $720 ($2,925) per year for a 30-year, $3 million life insurance policy with MassMutual. I have disability insurance based on my resident salary ($70k) but not my expected future salary ($350-400k).
Is this a reasonable quote for life insurance? Do I need the waiver of premium? Should I wait until I’m older to get life insurance, considering this policy would expire when I’m 58?
It’s generally best to get life insurance when you’re young, as premiums are lower and you can’t predict if future health issues might make it more expensive or harder to qualify.
I recommend adding a waiver of premium it’s optional, but worth it. This feature ensures that if you’re unable to work for six months or more, the insurance company will cover your premiums while you’re out of work.
It depends on your goal. If you’re looking for temporary death benefit protection, then this policy seems reasonable. However, if you want a policy that builds cash value, provides a death benefit for your future children, and doesn’t expire, then it may not be ideal. What’s your goal for buying life insurance?
The premium seems reasonable, but an insurance agent would know better. Most waiver of premium riders are either “own occupation” for 2-3 years before switching to “any occupation,” or they start as “any occupation” from the beginning. “Any occupation” means you need to meet Social Security disability qualifications. Make sure you understand the details before purchasing.
Off topic, but you should have a Future Increase Option (FIO) on your disability policy. This lets you increase your benefits without additional underwriting once you finish your residency.
Is the financial professional you’re working with independent or a Mass Mutual agent? I recommend finding an independent advisor who can compare multiple carriers and help you choose the best fit based on price, coverage, and conversion options.
Yes, that’s too high, and Mass Mutual isn’t the best choice they have high costs due to 43% mortality rates built in, which makes it expensive, especially for healthy individuals.
I have software that can show you which company offers the lowest rates, particularly for someone healthy like you.
It seems they write many high-risk policies, which leads to higher premiums for healthier clients.