Universal life insurance could be a vital part of a financial plan for successful veterinarians. Not only does universal life insurance provide you and your family with a tax free death benefit in the event of your passing but there are more reasons to do your research to see if a universal life insurance policy would be in your best interest.
While living your life, there are always unexpected expenses that arise. Having flexibility to handle those financial obstacles while maintaining protection for your family. If you have a universal life insurance contract, you can pay more into the policy than what is required. Then, after the premium expense charge is deducted, the remainder will go into the account value to earn interest. Conversely, if you need to skip a payment or two, your policy won’t lapse if there is sufficient account value in the policy to cover expenses; however, this is subject to policy conditions and minimums. This flexibility gives you the ability to respond to opportunities or disruptions in your financial situation without having to restructure or repurchase your life insurance policy.
Leaving an Estate
Think ahead to the estate tax. Nobody knows what the estate tax rate and exemptions are going to be when you die. But if you are effective with your investing on a veterinarian’s salary you can expect to have a substantia nest egg when you decide to retire. When this happens, it’s nice to have some liquidity in the form of a universal life insurance policy to handle the estate tax if that presents a problem for your loved ones. This prevents the need to sell real estate or businesses at fire sale prices to pay the estate tax. If this is a concern of yours, you may want to consider universal life insurance contract that is designed to last a lifetime.
Protect Against Disability
Protect your life insurance policy against disability. If you were to become disabled, think about how you will keep paying your life insurance premiums. Right after a disability is the last time you want to lose your life insurance policy. When going through the life insurance process be sure to ask about universal life insurance policies that come with riders that guarantee that your premiums will be paid if you become disabled. Think through this process in advance when you’re young and healthy.
Plan For Future Increases In Income
A popular rule of thumb is that young people should own 10-12 times their annual income in life insurance protection. But this isn’t always great advice for veterinarians. If you’re still just starting out, consider a rider that will guarantee you the right to keep purchasing insurance in line with your future income – regardless of what happens to your health in the meantime. This is very easy to do if you plan ahead. It’s almost impossible if you wait until after you have a health condition and then try to buy the policy your family needs.