Income Protection Insurancefor Doctors and Surgeons
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What Is Income Protection Insurance?
The insurer typically pays out monthly instalments of between 55% and 70% of the beneficiary’s pre-tax monthly salary. If the policy is held by an individual, the payments are not counted as employment compensation or salary and so are not taxed. Payments continue until the holder can start working again, retires, or dies—or until the policy term expires—whichever comes first.
Income insurance protection is an effective way for doctors and surgeons to safeguard their earnings and achieve security for themselves, their families, and their dependents. Due to the UK’s ongoing shortage of medical professionals, doctors and surgeons are always in high demand—incapacity caused by injury or illness is the greatest financial risk these professionals face.
Income Protection Policies for UK Medical Professionals
Finding the right income protection insurance for doctors can be complex and time-consuming. This is where Black Lion Insurance can make a real difference.
Black Lion helps doctors and surgeons choose the right income protection plan according to their unique needs, occupations, and budgets. This is achieved through one-on-one consultations and a personalised service that takes individual requirements into account.
Medical Professionals in NHS Roles
The policy can be aligned with NHS sick pay, becoming active when sick pay halves and then ceases. This can help to ensure comprehensive protection while reducing insurance premiums.
Medical Professionals in Private Practices or as Locums
The policy can be configured to start replacing lost monthly earnings at 30, 60, or 90 days into any valid absence from work.
Do Doctors and Surgeons Really Need Income Protection?
Here’s a simple example demonstrating the importance of income protection insurance.
Jayden, a UK surgeon earning £90,000 a year, suffers severe wrist injuries after falling down a flight of stairs. It will be at least two years before they are fit enough to resume practice.
Because Jayden has IP insurance, the policy make a tax-free payment every month. With the monthly benefit set at 60% of Jayden’s normal gross annual earnings this translates to £4,500. This money covers Jayden’s living expenses, bills, car loan and mortgage.
Because Jayden has a long-term income protection insurance policy, if they are still not able to return to work after two years, the policy will continue providing this monthly income. This protection can continue until John reaches retirement age.
Without the protection of IP insurance, Jayden would need to find another means of covering these expenses. This could put significant strain on their finances whilst they were unable to work.
Should NHS Doctors Consider Income Protection?
NHS sick pay does safeguard doctors’ earnings when incapacitated by short-term illness or injury. However, the duration of sick pay is limited—the NHS will only pay for up to six months of full pay, followed by a further six months at half pay.
This is actually quite generous when compared to sick pay offered by other employers. However, if a doctor or surgeon cannot work for more than a single year, the protection will not be sufficient. Doctors and surgeons who need protection for longer than one year may find themselves exposed to financial hardship.
Income protection insurance is better suited to professionals who have made significant investments in their career and want to protect that investment. The policy may provide coverage right up to retirement if required, offering a reliable safety net in the case of long-term illness or injury.
IP insurance can also augment the sick pay received—particularly when sick pay is reduced to half. This can provide a welcome boost to beneficiaries during the recovery phase.
Common Misconceptions
#1 – Income Protection Is Expensive
In reality, IP insurance does not need to be expensive. Premiums for a doctor in their 30s or 40s may only cost between £30 to £100 a month, depending on the specifics of the policy. While policies can sometimes cost more than £100 a month, this can still prove cost-effective when compared to the value of lost income.
#2 – Sick Pay Negates Income Protection
The truth is sick pay is often only provided for a limited time. This may not be enough to cover the full duration of the time spent not working. The same also applies to savings, which are finite.
#3 – Insurance Companies Won’t Pay Out On Claims
In fact, most insurers will pay out on more than 90% of claims. Most claim rejections are due to the policyholder being deemed fit for work. If the policyholder can demonstrate they are not able to work, there shouldn’t usually be a barrier to claiming. The right insurer will also make the claiming process straightforward and frictionless.
Getting Advice and Quotes
Black Lion is an FCA registered insurance broker specialising in income protection. With access to a huge range of the UK’s insurers, their consultants can provide advice on the suitable policies and how to tailor them for the needs of medical professionals.
Get tailored advice and quotes for income protection Insurance in three steps:
- Request a quote today, or call the team directly.
- One of Black Lion’s insurance protection specialists will get in contact to gain a full understanding of what is required.
- Black Lion Insurance will present the most suitable policies, with options tailored to match those requirements.
Doctors Income Protection Indicative Quotes
Last updated:
Example Monthly Premiums shows price of quotes obtained for Income Protection policy for a General Practioner with level cover & guaranteed premiums. Quotes are for a non-smoking individual with no pre-existing health issues that does not take part in hazardous pastimes. Policy ends on 67th birthday of the insured.
| Policy Type | Age | Monthly Benefit | Deferred Period | Benefit Period | Example Monthly Premium |
|---|---|---|---|---|---|
| Income Protection | 30 | £4,000 | 90 days | Until 67 Years Old | £52 - £58 |
| Income Protection | 40 | £4,000 | 90 days | Until 67 Years Old | £80 - £94 |
| Income Protection | 50 | £4,000 | 90 days | Until 67 Years Old | £132 - £146 |
Please Note: Example monthly premiums are intended for illustrative purposes only and to assist readers better understand and compare the potential price differences between the insurance policies listed. These quotes are not personalised or tailored to specific individual circumstances and may not reflect the actual monthly premium or terms that an individual with a similar overview may receive. For accurate, up-to-date advice and personalised quotes readers should contact Black Lion Insurance.
Factors Affecting Income Protection Costs
The primary factors dictating the cost of income protection insurance for doctors and surgeons include:
- Age – Older medical professionals pay more for IP coverage.
- Medical history – Those with pre-existing health conditions or evidence of previous health issues may pay higher premiums.
- Occupation – Doctors and surgeons in high-risk jobs pay more for IP insurance.
- Length of coverage – The longer the coverage term, the cheaper the premiums.
- Level of income being insured – IP premiums cost more when insuring a higher level of income.
- Lifestyle habits – Engaging in hazardous pastimes such as extreme sports may increase premiums. Injuries sustained due to riskier sports may be excluded from some forms of coverage.
- Deferred period – The longer the client agrees to wait before they can get paid after a claim, the lower the premiums.
Income protection insurance doesn’t have to be confusing. Get a quote and book a free consultation with Black Lion Insurance for expert guidance on choosing the right IP policy.
Doctors’ Income Protection Providers in the UK
At Black Lion Insurance we believe there is simply no such thing as a one-size-fits-all policy, especially when it comes to income protection. An expert opinion can help you make an educated and informed decision on what’s best for you. Remember, our service is provided at no direct charge to you; we earn a commission from the insurer where the policy is placed.
Click through on each of the links to more information about these providers.
AIG
AIG offer a structured pay out cover for your earnings, for example 60% of the first 30k, 55% of between 30k and 100k and so on. This is a rare example of an insurer which offers insurance to type 2 diabetics.
AVIVA
Aviva covers up to 55% of your earnings. They always use the own occupation definition of incapacity and if you return to work with a “lower level” job, they will top up your reduced income.
LEGAL & GENERAL
L&G will offer a maximum coverage of 60% of your annual income. Their accident and sickness insurance comes with a free life cover element to pay out a maximum of 12 times your monthly benefit if you die during the life if the policy.
LIVERPOOL VICTORIA
You’ll be covered for up to 60% of your income. This insurer provides reduced benefit payments to mirror NHS sick pay. They also offer sabbatical cover.
ROYAL LONDON
A maximum cover of up to 65% for the first £15,000 of your income, and 55% of the remainder up to a total of £250,000 per year.
VITALITY
Up to 60% of your earnings capped at £2,500 per month and 50% of earnings above that amount. You will receive reduced benefits if you qualify for NHS sick pay.
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