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Life Insurance For Nurses

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Nurses have access to several types of life insurance, from smaller workplace policies to more substantial private ones.

Nursing is one of the most important professions, especially today.

Nurses provide lifesaving care to their patients but don’t always get the financial care they need to protect their own families.

As a nurse, you probably have access to workplace life insurance, but you may benefit from purchasing additional coverage.

Below, we’ll walk through all your best options and help you define your coverage needs.

Life Insurance For Nurses Through The Workplace

Nursing is one of several occupations that often offers workplace life insurance. Employer-sponsored life insurance comes with both advantages and drawbacks.

The Good

  • Simple Coverage
  • Simplified Issue
  • Cheap (or free)

The Bad

  • Low Death Benefits
  • Not Portable

This type of coverage is often included as part of your benefits package, meaning it could be offered at little to no cost to you.

Your employer may offer free group life insurance up to a certain amount, like $25,000 or $50,000.

Many plans max out at 1 to 2x your salary, with some generous policies tripling your salary. You can often add supplemental coverage to increase the policy amount.

Since workplace life insurance is free (or close to it), enrolling is often a good call.

The problem with these policies is that many people stop with this level of coverage, not exploring other life insurance options because they’re insured at work.

Is Workplace Life Insurance Enough?

Workplace life insurance is a great benefit, but it could limit you in two ways:

  1. Portability: Many workplace policies aren’t portable, meaning you’ll lose your coverage if you ever change jobs.
  2. Policy amount: Workplace policies don’t offer enough coverage to meet most families’ needs.

Many experts recommend you purchase life insurance equal to 7 to 10x your income if anyone depends on your paycheck to survive.

When you factor in debt, college tuition for kids, and final expenses, the amount of life insurance you need climbs even higher.

Most employers don’t offer nearly enough coverage, meaning your family could be left struggling financially if you passed away with only a workplace policy.

$73,000

According to the Bureau of Labor Statistics, the median salary for a registered nurse is around $73,000.

A policy equal to 2x that salary might not even be enough to cover your family’s mortgage, let alone their other expenses.

If you don’t have any dependents or transferrable debts, and you have money saved for funeral costs, you don’t need to worry about purchasing additional life insurance.

Otherwise, you should explore the options below.

Life Insurance Options For Nurses

Deciding which type of life insurance to purchase doesn’t have to be difficult. You just need to define your needs and what you hope to get out of the policy.

The two primary types of coverage you’ll have access to outside of work are:

  • Term
  • Permanent

Term

Term is the most popular type of life insurance, and the most affordable.

It provides your loved ones with a tax-free death benefit if you pass away within a defined period of time.

You can choose between several term lengths, like 10, 20, and 30 years.

Term life insurance is a great option for nurses with financial needs that are likely to change over time.

These policies allow you to protect your spouse and kids and tailor your coverage amount to the stage of life you’re in.

Permanent

While term life insurance is ideal for most nurses, some situations might call for a permanent policy.

Permanent life insurance provides you with lifelong coverage. As long as you make payments, your loved ones will receive the death benefit.

They also come with cash value, an interest-earning account that you can access while you’re alive.

The catch?

Permanent policies are significantly more expensive than term policies.

If you’re worried about issues like estate taxes or caring for a lifelong dependent with special needs, a whole or universal policy could meet your needs.

Guaranteed whole life insurance is also a solid option if your health or age limits your access to term life insurance.

How to Secure The Best Coverage

Here are a few simple steps for locking in the perfect policy.

  1. Define your coverage needs. Look at your income, debts, expenses, and assets to calculate your life insurance needs.
  2. Get quotes: Once you know how much you need, take a few minutes to compare quotes and see your best options.
  3. Compare policies: Research the companies and policy options at your disposal to pick the best fit.
  4. Apply: Depending on your health and the type of policy you choose, you could have coverage in place in a matter of minutes.

Whatever type of policy you choose, don’t hold off on purchasing life insurance if you need coverage now.

The longer you wait, the more expensive life insurance becomes, and you’re leaving your family unprotected every day you go without coverage.

Author:

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Jason Fisher

Jason Fisher is the founder and CEO of BestLifeRates.org, LLC. and a multi-state licensed life insurance agent who has helped over a million Americans seek out affordable coverage, compare quotes, or get their family and businesses covered.

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