Doctors Income Protection
Income protection is one of the most important forms of insurance for any doctor.
As a doctor your ability to earn an income depends heavily on your ability to keep working. If you cannot work, then you cannot earn.
If you couldn’t work due to an injury or illness, how long would your sick last for? After that how long would your savings last for? Even if you savings could see you through a long period, the idea of eating up your hard earned savings is not attractive.
Income protection can solve this problem by replacing the majority of your income whilst you cannot work.
Income Protection Insurance
If you are unable to work for a period of time due to injury or illness, your income protection insurance will kick in to replace your income for a period of time.
An income protection policy will have a number of options that must be chosen from. These options include the benefit amount, waiting period and benefit period.
Most Australians can only obtain cover for up to 75% of their income, however doctors in some cases can protect 80% of more of their income. This amount is known as the benefit amount, and your adviser will be able to tell you exactly how much you can cover yourself for.
Before you can claim on your policy you will need to get through the waiting period. This is the period of time for which you must be unable to work. The period can range from 14 days through to 2 years depending on your needs and benefits, and the most common waiting period is 30 days.
Once you are on claim, you benefits will continue for the duration of the benefit period or until you are able to return to work, whichever comes sooner. The benefit period can be for 2 or 5 years, or through until age 65.
The age 65 benefit period is most common for doctors, however in some cases this may be able to be stretched to age 70.
Income protection policies are available on an agreed value basis or an indemnity value basis. Your financial adviser will discuss these options with you, and the right option will generally vary depending on your specific needs and objectives.
Income Protection for Doctors
As a doctor you are exposed to some fairly unique risks such as blood splashback, bone dust inhalation and occupationally acquired HIV. The majority of income protection policies do not cover many of these events, so it is absolutely vital that you check the cover before choosing a policy.
The best option is to use a financial adviser who already has a large number of clients in the medical field, as they are more likely to understand the unique risks that doctors face. Preferably you should deal with an adviser who specialises in doctors insurance.
How It Fits In
Income protection is an important form of insurance for doctors, however it should be seen as only one part of the overall package.
In conjunction with other forms of cover such as TPD insurance and trauma insurance, income protection enables doctors to comprehensively protect their own as well as their family’s financial security.
One risk that income protection will not cover is death, however this is looked after with life insurance.
Doctors Insurance Quote
You could ring around to each of the insurance companies obtaining quotes for your insurance, however not only is this time consuming, but it can also be potentially dangerous since many call centre staff may not understand the special risks faced by doctors and whether or not their company’s policy will provide a decent level of protection.
A far better option is to deal with a financial adviser who understands the special insurance requirements of doctors and other workers in the medical industry.
Here at Dr Insurance we can put you in contact with a suitable financial adviser who can assist with your special insurance needs. To obtain a quote simply complete our online quote form or get in contact with us.