8 questions about life insurance answered

February 19, 2020
Learn about the advantages of purchasing group term life insurance through AOAExcel®.
Group term life insurance through AOAExcel®

Regardless of practice situation, the life insurance coverage that many doctors of optometry currently have may not be enough to take care of their families. AOAExcel® offers peace of mind through group term and individual term life insurance for AOA members. Administered by AOAExcel-endorsed business partner AGIA, these disability and life insurance products are speci­fically negotiated plans that serve as convenient, affordable options to help secure doctors' futures.

Chris Burke, president and CEO of AGIA, offers answers to doctors' frequently asked questions.

1. What is life insurance, and why is it an important tool that all doctors should consider?

Term life insurance provides financial protection for a set period of time or term, such as one, 10 or 20 years. If you die before the term is up, your beneficiary receives the death benefit, usually tax-free. It can be used however needed without restrictions. Term life insurance is one of the more popular and affordable ways to provide a financial safety net for loved ones. Group term life insurance, like that offered through your association, can offer key advantages.

2. How much life insurance do doctors need?

Experts recommend you have six to 10 times your annual salary in place through life insurance and/or savings. You should have enough life insurance to cover your debt and the daily expenses for those you love.

3. What are the advantages of buying group term life insurance through AOAExcel?

Group insurance from an association is portable, so you can keep it no matter where you work. Plus, your group negotiates with insurance companies to include benefits that reflect your group's unique needs. On the other hand, employer-provided life insurance may not cover enough of your income, and if you leave your job, it often ends.

4. What information do I need to apply for term life insurance?

You'll be asked to provide information about those being insured. The initial application may require your Social Security number, driver's license information and medical details, such as doctor information and prescription doses. You may need to provide separately additional health and financial information.

5. What is the most common misconception about life insurance?

Many Americans overestimate the cost of life insurance by as much as five times, according to the LIMRA and Life Happens 2018 Insurance Barometer Study, so it may cost less than you think.

6. What are the bene­fits of AOAExcel's Opti-Life Insurance Plan?

The Group Term Life Section describes eligibility, renewability, benefits, premiums, exclusions and limitations of the plan.

7. Why should I consider adding this AOAExcel bene­fit if I already have coverage through work?

The term life plan is portable and can be used to supplement the coverage you need as part of your personal portfolio.

8. How affordable is the term life program?

It is competitively priced as recognized by thousands of your AOA colleagues. The cost of life insurance is determined by many factors. Your age, gender and health are considered when you apply. Visit aoainsurance.com/group-term-life to find rates and apply.

Related News

8 lessons the COVID-19 pandemic has taught us

From rethinking office flow to virtual care services to cash reserves—the ongoing pandemic has already taught doctors of optometry lessons to last a lifetime.

Talking politics in the office? 3 things to keep in mind

Even if you’re choosing to disengage, today’s politics have a way of finding you. What are the ground rules for approaching political debates in the practice?

Selling your practice to a private equity firm? Things to think about, ethically and otherwise

Private equity transactions are a trend in health care, including optometry. The AOA Ethics and Values Committee discusses what it might mean from your bottom line to the profession.