Comparison between life and disability insurance policies for doctors

Nowadays there are many doctors who heave a sigh of relief for being covered by the disability insurance policy they purchase. But this is not the case since such policies are meant to pay only when they are not completely disabled. In short, they are physically or mentally handicapped. But the policy makers are not obliged to pay to such doctors like surgeons who hurt themselves while performing a particular surgery. This is because they can still perform a routine checkup and not perform surgery until they are fully set to perform it. Therefore, it becomes crystal clear they cannot use the policy unless they are not able to do anything. And, that is what disability insurance for doctors is all about. However, there is a great difference between disability and life insurance for doctors. The life insurance for doctors work in the form of a lump sum payment which is provided by the insurance company to the respective beneficiaries during the death of an insure. One type of life insurance for doctors also include term life insurance which is even more better. This policy is meant to offer financial security for a duration of 10 to 20 years. During that time, the premiums are compensated and guaranteed. And, after that period, policy can be continued but at a substantial premium rate. This policy is basically more cheaper than the life insurance for doctors. The proceeds from term life insurance are availed so that lost potential income can be replaced during the working tenure. There is another form of life insurance that is termed as universal life insurance. They are similar to permanent life insurance but one difference between the two can be noted. The doctors can raise or lower their premiums throughout the policy coverage. It also plays a vital role tax defer. This can help doctors to build wealth over time. Most importantly, there is another type of life insurance that is stated as whole life insurance.

 This is another type of permanent insurance and is simple similar to the life insurance for doctors but has higher premiums than term life insurance and most importantly, it has a cash value that can serve as a saving tool and may also collectively accumulate tax deferred payment. On the other hand, disability insurance for doctors is particular more useful. Due to the fact that a person is completely disabled and he cannot earn anymore, but such insurance policy can still help a doctor to cover his lost income. If we carefully focus on the insurance policies for doctors, then it would be extremely difficult to find the best option between the two. Life insurance for doctors is meant to help the family members carry out their further expenses like paying off the debts and taxes. Disability insurance is far more better in the sense that if a doctor is disabled and he has to pay his mortgage payments and other debts then this policy will do the rest for him since such policies replace lost income. As mentioned earlier, the life insurance for doctors can be tax free and the beneficiaries will not have to pay the tax but same is not the case with disability insurance policy does not allow the tax to exempt as the doctor is still the beneficiary. Most importantly, I would suggest that both are particularly important in their own way. And, a doctor should buy the two policies separately so that you can atleast benefit yourself with the disability insurance policy.

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