KEY TAKEAWAYS

  • Life insurance ensures doctors' families maintain lifestyle, cover debts, and have a financial safety net after their passing
  • Doctors should consider term life, whole life, and critical illness insurance for comprehensive and tailored coverage options
  • Premiums depend on age, health, coverage amount, policy type, lifestyle choices, and medical speciality risks
  • Secure early coverage, maintain good health, combine policies, pay premiums annually, and add riders for discounts
  • Sun Life, Manulife, RBC, and Desjardins offer tailored life insurance solutions specifically designed for medical professionals

IN THIS ARTICLE
IN THIS ARTICLE

Being a doctor comes with many unique financial responsibilities. So, securing your income, financial future, and your loved ones becomes crucial. While high-income professionals like doctors face distinct challenges and risks, having comprehensive life insurance coverage keeps you stress-free throughout your working years and after!

In this article, we’ll explore the best life insurance companies for doctors in Canada, and discuss what features to look for in a policy to meet your specific needs. 

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Why do doctors and physicians need life insurance?

Doctors and physicians have a lot at stake when it comes to their financial security. Here are some key reasons why life insurance is vital for them:

  1. High income and lifestyle maintenance: Doctors often have a high income, which supports a particular lifestyle. Life insurance ensures that their families can maintain this lifestyle even if the primary earner passes away
  2. Significant debt: Many doctors graduate with substantial student loans and may have additional debts from setting up a practice. Life insurance can help cover these debts, preventing financial strain on surviving family members
  3. Family protection: Life insurance provides a financial safety net for the doctor’s dependents, covering living expenses, educational costs, and future needs
  4. Estate planning: Whole life insurance can be a valuable tool for estate planning, helping to cover estate taxes and ensuring that assets are passed on to heirs without significant tax burdens

What kind of life insurance policies are ideal for doctors?

Doctors can choose from several types of life insurance policies, each offering different benefits:

📄Term life insurance: Provides coverage for a specific period, such as 10, 20, or 30 years. It is generally more affordable and can be ideal for covering temporary needs like debt repayment or children’s education

📄Whole life insurance: Provides coverage for the policyholder’s entire life. It includes a savings component (cash value) that grows over time and can be borrowed against

Other insurance

📄Critical illness insurance: While not a life insurance policy per se, critical illness insurance provides a lump sum payment if the policyholder is diagnosed with a severe illness, helping to cover medical expenses and loss of income

📄Disability insurance: Disability insurance provides income replacement if the policyholder becomes unable to work due to injury or illness, ensuring financial stability during recovery periods

Read more about critical illness insurance

What factors affect the cost of life insurance for doctors?

Several factors influence the cost of life insurance for doctors:

  • Age: Younger applicants typically pay lower premiums
  • Health: A doctor’s health status, including any pre-existing conditions, can affect premiums. Healthier individuals generally receive better rates
  • Coverage amount: The higher the coverage amount, the higher the premiums
  • Policy type: Permanent life insurance policies (whole and universal) tend to be more expensive than term life policies
  • Lifestyle: Factors such as smoking, alcohol consumption, and hobbies can impact premiums
  • Medical specialty: Some specialties might be considered higher risk, affecting the cost of insurance

How can you get the best life insurance quote for doctors?

While some factors that increase premiums are unavoidable, physicians can still take several steps to potentially lower their costs:

  • Secure coverage early: Purchase life insurance in your 20s and 30s when premiums are generally lower. This can result in significant savings, sometimes over 50%, compared to buying coverage later in life
  • Maintain good health: Adopting a healthy lifestyle by improving your diet, exercising regularly, quitting smoking, reducing stress, and addressing medical issues can help you qualify for better pricing tiers. Moving up just one tier (e.g., from standard to preferred) can save you thousands over the policy’s duration
  • Combine term and permanent insurance: Use a combination of less expensive term life insurance with your permanent policy to lower overall premium costs. This strategy can help you manage expenses more effectively
  • Pay annually: Opt to pay your premiums annually instead of monthly. This approach can save you about 5-8% due to reduced administrative fees
  • Purchase during low-rate periods: Lock in your policy during periods of low interest rates, which can result in lower premiums as insurers adjust their pricing based on economic conditions
  • Add riders for discounts: Certain riders, such as a waiver of premium riders, can provide additional benefits and potentially lower your base policy premiums by reducing the insurer’s financial risk
  • Evaluate dividends: For participating whole life policies, dividends from the insurer’s surplus profits can lower your net premium costs. Choosing insurers with a strong dividend history can lead to considerable savings

What are the top Canadian insurance companies for doctors?

Several Canadian insurance companies are renowned for providing excellent life insurance options for doctors. Here are some of the best:

  1. Sun Life Financial: Known for its comprehensive coverage options and strong financial stability, Sun Life offers both term and permanent life insurance policies tailored to medical professionals
  2. Manulife: Manulife provides flexible and customizable life insurance policies, including options for critical illness coverage, which can be particularly beneficial for doctors
  3. RBC Insurance: RBC Insurance offers competitive rates and comprehensive coverage options, including term, whole, and universal life insurance, along with disability insurance, which is crucial for doctors
  4. Desjardins Insurance: Desjardins provides a range of life insurance products with the flexibility to tailor coverage to the unique needs of doctors, including options for both personal and business protection

Sun Life Financial

What we like:

  • Comprehensive coverage options

Sun Life offers a full portfolio of insurance products for healthcare professionals, including physicians and dentists. Their product suite includes group life insurance, dental, vision, and supplemental health benefits, as well as employee assistance programs and absence management solutions

  • Income protection plans

Sun Life provides competitively priced Premium and Preferred Long-Term Disability plans for the different income structures of healthcare professionals. These plans protect doctors in case of illness or injury, with additional benefits like progressive illness and retirement contribution benefits

  • Specialized support for healthcare professionals

Sun Life has a dedicated team specializing in the healthcare market, including underwriting, account management, and claims teams

  • Modern digital tools

Sun Life offers advanced digital tools like file feed integration, API connectivity, virtual education through Benefits Explorer, benefits administration via Maxwell Health, and online claims functionality

  • Absence management solutions

Sun Life’s absence management solutions help ensure compliance with federal and state laws, including paid family and medical leave requirements

Manulife

What we like

  • Comprehensive healthcare coverage for doctors

Manulife offers a comprehensive and affordable insurance program tailored specifically for healthcare professionals. This program includes a variety of insurance products that cater to the unique needs of doctors.

  • Detailed underwriting process

Manulife employs a thorough underwriting process to assess and classify the risk level of each applicant. This includes an initial screening, a detailed health history review through a telephone interview conducted by Dynacare, and additional medical tests if necessary. The process ensures accurate premium rates based on the individual’s risk profile.

  • Active application monitoring

Throughout the underwriting process, Manulife actively monitors the progress of applications, ensuring that all required information is received promptly. This includes regular follow-ups with service providers and maintaining open communication with applicants.

  • Experienced underwriting team

Manulife’s underwriting team comprises qualified underwriters, medical doctors, accountants, and professional support staff with decades of experience. Their expertise ensures sound, objective, and fair underwriting decisions, maintaining high industry standards.

  • Confidentiality 

Manulife adheres to strict federal and provincial privacy legislation to protect applicants’ personal information. 

  • Right to appeal

Applicants have the right to appeal underwriting decisions by providing additional information for reassessment. This process involves consultation with other underwriting experts, increasing the chances of a fair resolution.

Know more about Manu Life’s life insurance offerings.

RBC

What we like

  • Comprehensive financial solutions

RBC offers a range of insurance solutions for doctors, dentists, and medical students. These solutions cover various stages of a medical career, from financing education to setting up and managing a clinic.

  • Personalized financial advice

Healthcare professionals can benefit from highly personalized advice provided by RBC Healthcare Specialists. These experts understand the unique demands and financial needs of healthcare providers, ensuring tailored guidance and support.

  • Specialized borrowing and banking options

RBC provides customized borrowing and banking solutions that help healthcare professionals manage their finances.

  • Support for clinic management

RBC offers financial products and services that assist with clinic setup, management, and growth.

  • Future planning and investment

RBC supports healthcare professionals in planning and investing for their future. Whether just starting out or managing substantial wealth, RBC offers strategies to grow and protect financial assets.

How does RBC help medical students?

We’ve listed what RBC offers medical students in the table below:

Feature Benefit
Substantial borrowing capacity Borrow up to $350,000 for medical or dental school
No reapplication post-residency Continuous credit line without reapplying after residency
No co-signer required Most applicants do not need a co-signer
Competitive interest rates Prime rate or Prime minus 0.25% with RBC Healthcare Advantage
Flexible repayment terms Manageable repayment options tailored to students’ needs
Additional savings with RBC Healthcare Advantage Preferred rates and fee waivers on various RBC services

Can clinic owners benefit from RBC’s offerings?

Yes, RBC offers customized solutions for clinic owners.

Feature Benefit
Special financing rates Prime minus 0.25% on operating lines of credit and term loans
Comprehensive financial Planning Custom strategies and plans tailored to clinic owners’ needs
Business financing Loans for hiring staff, acquiring equipment, and upgrading software
Exclusive savings and offers Discounts on billing solutions and software
Personal and business banking savings Waivers on monthly fees for personal and business accounts

Desjardins

What We Like

  • Reduced fees and competitive rates

Medical professionals can enjoy lower fees and competitive rates on various financial products and services, enhancing their financial flexibility.

  • Unlimited transactions

The comprehensive transaction plan allows unlimited transactions using any access method, including teller, automated services, and cheques. This is beneficial for busy professionals who require seamless banking.

  • Business solutions

Desjardins offers tailored business accounts with unlimited transactions and special rates. These solutions help medical practices manage their finances more efficiently, whether it’s for hiring staff, acquiring equipment, or upgrading systems.

  • Personal and professional financial management

Desjardins provides comprehensive plans and tools to help medical professionals manage their finances. This includes strategic advice on leasing versus buying property, tax strategies, and retirement and estate planning.

  • Comprehensive mobile services

Desjardins mobile services offer direct access to finances from mobile devices, allowing medical professionals to manage their accounts, transactions, and financial planning on the go, ensuring convenience and efficiency.

  • Wide reach and accessibility

Desjardins boasts nearly 1,300 points of service and 45 business centers in Quebec and Ontario, ensuring medical professionals have convenient access to services.

Check out PolicyAdvisor's life insurance calculator.

What should physicians look for in an insurance provider?

When choosing an insurance provider, doctors should consider the following factors:

  • Financial stability: Ensure the insurer has a strong financial rating and a reputation for reliability. This ensures they can pay out claims when needed
  • Product flexibility: Look for insurers that offer a range of products and the ability to customize policies to fit your specific needs
  • Customer service: Good customer service is crucial for managing your policy effectively. Check reviews and ratings for insights into the insurer’s customer support
  • Claims process: A straightforward and efficient claims process can make a significant difference during difficult times. Research how the insurer handles claims

Want help finding the best life insurance provider? Speak to our experts!

Many offers look great on paper, but only an expert advisor can help you select the best. At PolicyAdvisor, our licensed insurance advisors help you examine different policies and select the ones that meet your personal and professional needs. Want to know more? Speak to an expert today!

Frequently Asked Questions

Are there any special insurance plans specifically for doctors?

Some insurance companies offer plans tailored specifically for medical professionals, which may include benefits like higher coverage limits, lower premiums, or additional rider options. Always check with the provider for specialized plans.

How can doctors and physicians apply for life insurance?

Doctors and physicians can apply for life insurance by first assessing their coverage needs, and researching and comparing policies by consulting an expert. They need to complete an application, undergo a medical exam, and review and sign the policy. Paying the initial premium activates the coverage.

What information is needed when applying for life insurance?

When applying for life insurance, you’ll need to provide personal identification, medical history, financial information, details about your lifestyle (such as smoking and alcohol use), and any existing medical conditions. Additionally, you will be required to undergo a medical exam and provide information about your beneficiaries.

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Call us at 1-888-601-9980 or book time with our licensed experts.
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SUMMARY

Doctors need life insurance to protect their income, cover debts, and secure their families’ future. Ideal policies include term life, whole life, and critical illness insurance. Factors like age, health, and lifestyle influence premiums. Top providers like Sun Life, Manulife, RBC, and Desjardins offer tailored solutions with comprehensive coverage and specialized support for healthcare professionals.

Written By
Jiten Puri
CEO & Founder, Insurance Advisor, LLQP
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