Income Protection for Doctors

Introduction

If you’re a medical professional, have you ever thought about doctors’ income protection? Did you even consider that such a thing existed?

Well, now may be the time to give this valuable type of insurance some careful thought. Black Lion Insurance offers specialist advice to help doctors, locum doctors, and surgeons find suitable income protection insurance.

We can set up the policy for you, as well as help you claim.

If you are unable to work due to sickness or injury, income protection cover can provide financial peace of mind if you are unable to work due to sickness or injury.

We’re here to help you choose the right option for you, your family and your work and personal circumstances.

What is Income Protection for Doctors?

Essentially, income protection cover will pay out between 55% and 70% of your gross earnings (i.e before tax) in the event that you are unable to work due to an illness or injury.

In almost all cases benefit is paid monthly. In most cases, the policy is between the insurer and the individual (not the Doctor’s employer or company) which means that the monthly benefit is paid to the individual and so it is likely not to be subject to income tax or NI. This to will depend on your specific policy – and on your insurer, of course.

It goes without saying that all income protection providers offer distinct policies, therefore, as whole of market advisers on IP policies, Black Lion Insurance can help you to choose the right one for your needs.

Your policy will cover you if you work for the NHS, or privately.

In the event of a valid claim, the monthly benefit from income protection can be used to cover essential expenses such as mortgage or rent, bills, groceries, and vehicle running costs. This coverage can provide financial stability during periods when you are unable to work due to illness or injury.

How are you today, Doctor?

As a doctor or surgeon, you save lives every day. Thank you.

Whether you’re a part of the NHS or you work privately, the aim is to enhance and prolong life. The positive outcomes for patients and their families are highly rewarding.

However, you don’t need us to tell you that your working life is somewhat stressful.

Long hours and life-or-death decisions, perhaps not always with the outcome you wanted, can take their toll on your health and wellbeing. You know better than most people the effects of an accident or a serious illness on the heart, mind and soul of a person. Importantly, you witness every day the devastation that ill health can bring.

You focus on the body, of course. But there are financial consequences to sickness and injury, too.

Have you had the time to concentrate on your own health? And on your own financial wellbeing?

I’m a Doctor. Do I really need Doctors’ Income Protection?

Take a long, hard look at your finances.

Although you may be earning well currently, if you would not be able to afford your mortgage or bills without a regular income, an income protection insurance policy could provide you with the necessary financial support. Contact us for more information.

If, however, you know that you could get by on your savings, then you may NOT need it; similarly, if your family plans to support you or you feel that you could survive on benefits. However, it is worth considering what may happen if an illness or injury had a longer duration of recovery or was pernamently prevented you from working. This may require replacement income for several months, years or right up until your retirement age. Planning for long-term financial stability is crucial in such scenarios.

NHS Sick Pay

We understand that the NHS offers generous sick pay. Sick pay will rise with length of service. For example, after 5 years as an NHS doctor or surgeon, you will receive maximum NHS benefits: 6 months’ full pay and 6 months’ half pay.

GPs, locum doctors and Locum GPs’ sickness benefits will vary – sometimes dramatically; some may not qualify at all.

It’s important to evaluate your financial situation and consider whether income protection insurance is a necessary safeguard for you.

There’s good news, however. Some insurers offer special features on their Doctors’ Income Insurance plan, including payments that mirror your deferred period.

What is a Deferred Period?

Your deferred period is specified number of months during which benefits will NOT be paid after your claim. In brief, the longer your deferred period the lower your monthly premiums.

Note: We’d advise you to check your employment contract due to the NHS sick pay benefits structure. Knowing how much sick pay you’re entitled to means that Black Lion Insurance can offer you the most appropriate advice based on the information you give us.

For example, you could pay competitive premiums and then have your IP start once your NHS sick pay stops paying out.

Note that Income Protection for Doctors usually keeps the NHS sick pay structure in mind when your deferred period is being planned. Also, that some insurers will enable you to top up your NHS sick pay. This is good news as you could have a longer deferred period – without your cover being compromised.

Doctors’ Income Protection – How it Works

After an in-depth fact find, the consultants here at Black Lion will search the whole of the market for the best rates and the best policies from all the major income protection insurers.

If you have an existing policy, we’d be happy to review it for you. Your situation is likely to have changed considerably, therefore your cover may not be appropriate. Don’t worry though – we can help you to change quickly and easily.

With most insurers, you’ll receive between 55% and 70% of your pre-tax income.

Policy Options to Consider:

Policy cease age. Your age at which the policy will end. The higher the cease age, the more you will pay.

How long your claims period should be. Shorter term claims periods are cheaper; longer terms – more expensive. Is a short-term policy enough for your needs, however?

Incapacity Definition. We would always recommend the “Own Occupation” definition of incapacity. This means that you’ll receive pay outs if you can’t carry out the job you do currently, rather than say a series of different, but related tasks.

Types of Premium. In brief:

Reviewable Premiums. Your premiums may start cheaper but could rise depending on your insurer.

Age-Banded Premiums. Again, cheaper premiums to start with will rise – but only by a pre-set amount established in your policy.

Guaranteed Premiums. More expensive initially but payments are locked in, unless you make any changes to your policy.

Sabbatical Cover. You may be able to take a break from your policy of up to 2 years. Perhaps you want to work or study abroad? That’s fine, as long as you have a UK bank account.

International Coverage. If you move to anywhere in Europe, the USA, Australia or New Zealand, you can keep your cover.