Income Protection for Doctors
Due to the nature of their occupation, obtaining income protection for a doctor requires a tailored approach to achieve the best outcome.
In this blog post we will be discussing the unique aspects of income protection specifically for doctors, why it’s essential, and how our process can ensure you have the right cover in place.
Income protection is a form of insurance that is designed to protect your income. This insurance pays a percentage of your pre-disability income if you are unable to work due to illness or injury. Unlike other types of insurance, income protection doesn’t just offer a lump sum payout, it provides ongoing payments that can replace a portion of your income during the time you are off work. Typically, this cover will pay a portion of your pre-disability income. This income can be important to maintain your lifestyle, cover bills, and support your family if you’re unable to work for a period of time.
Income protection cover may pay a partial or total disability benefit, this will depend on the particular insurance policy. Income protection is flexible and it allows for different ownership types, waiting periods, benefit periods, and features.
1) The ownership type can be structured through super, personally, or a combination of both.
2) The waiting period refers to how long you are required to wait before the payments start. Most income protection policies offer a waiting period of between 14 days and two years.
3) The benefit period is how long the payments will continue if you remain unable to work. Most income protection policies offer two years, five years, or up to a specific age (for example age 65).
4) The features and benefits will vary depending on the insurer and product selected. Some products offer more comprehensive features.
Why Income Protection is Important for Doctors
While income protection is valuable for anyone who relies on their income, it is particularly important for those in specialist professions like medicine. Doctors often spend many years and significant financial resources obtaining the qualifications necessary to practice. The cost of education, the time spent training, and the income forgone during this period can be immense. Once qualified, a doctor’s income reflects their specalised knowledge and experience, making it essential to protect that investment.
Further, doctors face unique risks in their daily work environment. Exposure to infectious conditions, physical strain from long hours, and high-stress levels can all contribute to health issues that may prevent them from working. Income protection offers a safety net that can help doctors manage financial obligations if they become unable to perform their duties due to illness or injury.
Given the complex nature of medical work and the financial commitments that come with a high-income earner career, it’s important for doctors to have income protection that is tailored to their specific circumstances. A generic approach may not provide the level of cover needed to protect their income and lifestyle adequately.
Importance of a Tailored Approach
We understand that doctors have unique needs when it comes to insurance. Our process is designed to ensure that you receive comprehensive cover. Here’s how we approach income protection for doctors:
Firstly, we will complete a needs analysis with you. A needs analysis is a tool to help us understand the right level of cover for you. We discuss in detail your occupation, and income and assess your ability to maintain a level of income. We also consider any existing cover you might have and assess if this cover should be retained or replaced. This personalised approach ensures that the cover you receive is appropriate for your specific situation.
2) Pre - Assessment
We offer a comprehensive pre-assessment process. The pre-assessment process involves providing details to medical underwriters, the information is confidential and anonymous. These details allow the underwriters to provide feedback on your medical history before lodging a full insurance application. This helps the process to be fast and efficient and we can then narrow down which insurers would be the best fit for you.
3) Product Research
Once we have determined the insurers offering the most beneficial medical terms, we then conduct thorough research on the individual policies. The types of policies, features, and benefits vary depending on the insurer. We use software and our extensive knowledge of insurance products to determine which option is most appropriate. We discuss the options in detail with you and ensure you are comfortable and well-informed during each step in the process.
4) Application and Final Stages
The insurer has now been selected, we then submit a full application to the insurer. We liaise with the insurer and yourself to get the best possible outcome. Once the insurance is approved, we work with the insurer to place the policy in force. As your circumstances may change overtime, we provide regular reviews to ensure the cover remains appropriate. During the stages, you will be provided with an advice document which will provide a detailed summary of the recommendations.
At Unified Wealth our team is experienced in working with medical professionals to provide goal-based advice and solutions. We know that every professional’s situation is unique, and we take pride in offering tailored strategies that align with your professional and personal goals.
If you are a doctor and want to review your income protection options, contact us today for a personalised consultation.
About Us
After working as an advisor for a decade, Joel founded Unified Wealth.
Unified Wealth specialises in helping clients who are facing life’s big decisions.
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At Unified Wealth our team is highly experienced and provides goal-based advice and solutions for a range of advice strategies.
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