What Every Doctor Should Know About Insurance – Before It’s Too Late!

Now, most of us wouldn’t think twice about insuring our house, car, or other valuables. But here's the thing: your income is probably your most valuable asset, and protecting it should be a priority. After all, if you can’t work due to illness or injury, how will you keep the bills paid and your family secure? This is where life and income protection insurancecome in. It’s time to seriously think about safeguarding your livelihood.

Income Protection Insurance: A Safety Net You Can’t Ignore

Income protection insurance is like a financial parachute. If you become unable to work due to illness or injury, this insurance kicks in and provides you with a monthly benefit. It's your backup plan – so you don’t face financial chaos while you're trying to heal.

For medical professionals, income protection insurance isn’t just an option – it’s crucial. Whether you're dealing with a temporary illness or a long-term injury, this insurance helps keep your finances intact. The best part? If you can return to work part-time or in a reduced capacity, income protection can still provide you with a partial payment to top up your income.

Why Medical Professionals Need To be Insured

You’re no stranger to the risks of healthcare work. Whether it's back injuries from lifting patients, exposure to blood-borne viruses like HIV or Hepatitis, or the mental toll of long hours and high stress – these are real threats. According to the World Health Organization, healthcare workers face an array of hazards daily. And if you think you're immune, think again – healthcare workers make more serious injury claims than any other occupation, with musculoskeletal disorders and other injuries topping the list.

What Can You Claim?

If you’re sidelined by illness or an accident  (depending on your policy's waiting period), income protection can replace up to 75% of your pre-disability income. You can choose the payment period – from a few months to coverage all the way until you're 65 years old. Most doctors  choose the latter, making sure they’re covered no matter what life throws at them. You can also choose level or steped premiums (which increase with age).  All of these factors will effect your insurance premuim. 

Coverage Specific to Your Job

Here’s the beauty of income protection for healthcare workers: it’s tailored to your specific occupation. Whether you're a surgeon, a dentist, or a nurse, the policy covers you based on the work you do. If you’re unable to perform the duties of your specialty, the policy ensures that you’re still covered.

And let’s talk about the limitations of other options like sick leave, workers' compensation, or annual leave. They may provide some relief, but they won’t fully cover you if you're off work for a long period or dealing with something beyond a typical workplace injury. Income protection insurance fills that gap, making sure you don’t miss a beat.

How Much Does Income Protection Insurance Cost?

The cost of income protection varies based on your age, income level, coverage type, and whether you go for stepped or level premiums. Stepped premiums can rise quickly, but level premiums are much more stable. The best part? Your premiums are tax-deductible, which can save you a decent chunk of change – especially if you're in a high tax bracket. Essentially, the tax office covers almost half of the premium for you, making it a savvy financial move.

Picking the Right Income Protection

Choosing the right income protection policy requires some thought. Insurers will typically ask about your personal details, occupation, medical history, lifestyle habits, and even your GP details during the application process. This ensures you're getting the right coverage for your unique situation. It’s worth spending the time to get this right.

Life Insurance for Medical Professionals

As a doctor you face a set of unique risks that other professions simply don’t. For example, needlestick injuries and exposure to blood-borne diseases like HIV and Hepatitis can be part of the job. That’s why it’s important to look for life insurance policies that specifically cover these kinds of risks.

You may also wish to include Trauma Insurance in your policy which covers you on diagnosis of a major illness e.g. Stroke, heart attack, cancer etc.  Working out how much insurance you actually need is the key.   You can use this calculator to find out what amount is appropriate.

The Bottom Line

As a doctor,  you already understand the importance of protecting your health and well-being. But don’t forget to protect the thing that makes it all possible: your ability to earn an income. Income protection and life insurance aren’t just “nice to have” – they’re vital to ensure you’re not left in the lurch if something goes wrong.
So, take a moment to think about your future. Talk to us to get the right coverage, and ensure that if the worst happens, you’re not left scrambling. Because when it comes to your income, it’s better to be safe than sorry.

Chris Tolevsky has over 30 years experience in the medical and allied health fields.  He provides expert guidance on tax strategies, building and protecting wealth . If you’re interested in discussing how we can help you please book a complimentary consultation. 

Disclaimer: This article contains general information only . It is not designed to be a substitute for professional advice and does not take into account your individual circumstances, so please check with us before implementing this strategy to make sure it is suitable