Make Sure You’re Picking the Right Life Insurance

What CRNAs Need to Know

As a financial advisor who’s worked with CRNAs and other medical professionals for over 30 years, one of the most common points of concern that people have about their legacy planning is life insurance — how does it work and why is it important?

Life insurance gives you the assurance that your loved ones and dependents will be able to maintain the lifestyle they’re accustomed to, even if you are no longer around.

There is no such thing as a one-size-fits-all insurance policy.

And your insurance plan must adjust to your different life circumstances as you grow, age, and evolve over the course of your career.

Here are key items to consider when choosing life insurance:

Evaluate the 3 different types of Term Life Insurance:

Evaluate the 3 different types of Term Life Insurance:

1. Renewable Term Insurance

Renewable Term Insurance offers a level of the death benefit for the entire duration of the policy agreement. The catch is that your premiums will increase each time the policy is renewed (typically on an annual basis). Application and renewals for these policies may be subject to medical qualifications. There are no cash values but there may be policy dividends.

Who benefits from a plan like this?

  • Younger professionals and families who need a fixed amount of money to support themselves
  • People with more temporary insurance needs

2. Renewable Decreasing Term Insurance

Decreasing Term Insurance offers a level premium, meaning that your premium payments will not change if the policy is renewed. Medical qualifications are sometimes waived or not required for these kinds of policies. And while there are no cash values, there may be policy dividends. The catch is that the death benefit decreases over time.

Who benefits from a plan like this?

  • Individuals without dependents
  • Individuals whose needs will decrease over time and ultimately disappear

3. Level Term Insurance

Unlike the first two options, Level Term Insurance gives you both a level death benefit AND level premiums if it’s renewed for the duration of the selected term period, which is usually, 10, 20 or 30 years. If the insurance protection is still needed at the end of the selected level term period, these policies generally provide that the coverage can be renewed without evidence of insurability, with premiums then increasing each year thereafter. Most do offer a convertibility option to a permanent form of coverage thus allowing you to keep the coverage for lifetime with a fixed premium.

Who benefits from a plan like this?

  • Individuals who are clear about the level of their needs for a known duration

Identifying the best Life Insurance Policy for you is an essential component of good financial planning. And good financial planning is the secret to truly understanding your life insurance needs!

To find out more about life insurance talk to a CRNA Financial Advisor, and start building a clear and comprehensive financial plan.

The future is bright when you have a good financial strategy.

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