Question 1: SHOULD I BUY life INSURANCE during RESIDENCY?
In most cases, this question is interchangeable with the question: “Does anyone depend on me financially?” This is most commonly a spouse and/or children, but could also include parents or others. If the answer to this question is yes, purchasing life insurance can help you financially support these dependents in the unlikely event of your death.
The purpose of life insurance is to financially support your dependents in the event of your death.
Residents may also be interested in purchasing life insurance if they expect to have financial dependents in the future and want to lock in a rate and coverage while they are still young and healthy.
If your only concern is the balance of your federal student loans, you do not need life insurance. These loans are discharged upon proof of death. Note that this is not always the case with loans held by private companies (e.g., loans that have been refinanced). If you have private loans, check with your loan servicer to determine if these loans are dischargeable upon death. If they aren’t, you should factor these loans into your calculations of how much life insurance to buy (see this page for more on calculating life insurance needs).