Income Protection Insurance for Doctors
Article published on 8th August 2011 by Tom Marriott
Income Protection for doctors has a history of being difficult to source. Recent improvements within the insurance industry have improved the ability for doctors to purchase Income Protection at reasonable prices.
Below is a brief explanation of what Income Protection is and some of the benefits for doctors looking at getting Income Protection Insurance.
What is Income Protection?
Income Protection (or Permanent Health Insurance) is a type of insurance that will pay you a monthly benefit if you cannot work because of injury, disability or prolonged illness. It is a long term policy that can either pay until you are well enough to return to work or until your chosen retirement age if you cannot work again.
This policy does not cover you for Redundancy and may not be suitable for your needs if you want unemployment/redundancy cover. If you are looking for Unemployment/Redundancy Insurance go to Here.
NHS Income Protection for Doctors
Doctors working for the NHS automatically get paid sick leave but the amount of monthly benefit that you receive is based upon the length of employment.
For the first 3 months after starting employment you would not receive any sick pay if you found yourself unable to work due to illness. After the the first 3 months the amount of sick pay you receive is dependent on how many years of continuous employment you have sustained.
Once you have accrued over 5 years employment you will receive 6 months full pay, after which you will receive another 6 months at half pay.
Private Income Protection for Doctors
What would happen after the first 6 months when you are only getting half your pay? And after the following 6 months?
Quite simply you will not receive any pay from the NHS if you do not return to work. We can arrange an Income Protection policy that will work simultaneously with your employment benefits as a doctor.
For example, a typical Income Protection policy for a doctor would be tailored to 'top-up' your monthly benefit to your regular monthly income when you reach your 6 month half pay with the NHS. The policy would also be scheduled to increase the monthly benefit to your full regular monthly income once you are unable to work for 12 months. This payment would continue until you returned to work or until your predetermined retirement age.
Doctors are now considered to be a Class 1 occupation (lowest hazard rating) for Income Protection Insurance which means that policy premiums are now more favourable. However, surgeons are considered to be at a higher occupational risk and are likely to have higher premiums to reflect this.
Gender Discrimination Act
The gender discrimination act is coming into force in December 2012 and it will be effecting Income Protection Insurance. At the present time males pay lower monthly premiums for Income Protection than females. As of December 2012 monthly premiums for Income Protection for doctors will increase to match those of their female counterparts.
Therefore a male doctor looking for Income Protection Insurance will benefit from setting up a policy before December 2012, as the premiums will be and remain lower than a policy taken out after this period.
The monthly premiums for female doctors will not be effected by this change in the Gender Discrimination Act. We would suggest that they apply for Income Protection for doctors as soon as possible as age is a factor in premium prices.
Now you have a better idea of what Income Protection is and how it can help you as a doctor, why not try our free Income Protection Quote or please feel free to call us on 01723 516 600.
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