Income Protection Insurance is a product that replaces part of the insured’s income if they are unable to work because of illness or injury. Whilst some Doctors may not need Income Protection Insurance, many need to ensure they continue to receive income to pay for expenses like mortgages, private school fees, living expenses and more if they are totally or partially unable to work.
Doctors commonly have Income Protection Insurance arranged by a broker like Experien Insurance Services (Experien) from a choice of several life insurers. There are other ways to buy this cover but a broker can offer personal advice and help you choose the right amount and type of cover and to shop around for the best combination of quality and price. Because the cover is valuable, the insurer will want you to provide evidence of your health status when you apply, and Experien helps you manage this process. Most importantly, if you ever need to claim on the policy, then Experien will help you at this important stage. An Income Protection claim can be paid for many years so you want a broker who will provide reliable and ongoing support.
Many Doctors are self employed or work in relatively small practices. They may not have built up extensive paid sick leave allowances like those working for many years at larger corporations. These Doctors can be financially vulnerable to interrupted earnings if they don’t have enough wealth built by the time they become sick or injured. Many Doctors with this profile consider Income Protection Insurance to provide the protection they need.
An Income Protection Insurance product offers many choices and these can be used to tailor the product to your needs and budget. For example, there is a concept called a “waiting period” which is how long you need to be off work because of illness or injury before a claim starts to be paid. The longer the waiting period, the less likely you will claim and the shorter the duration of any claim will be. So the price of such cover is lower. There are many other features, like a “benefit payment period” and Experien can discuss these options to guide you on what is best for you.
Modern Income Protection products usually will only insure a maximum of 70% of your income, and sometimes less. So you may want to consider “topping up” your Income Protection cover with other products that insure you against illness or injury, like Total and Permanent Disability Cover and Trauma Cover.
This is general information and limited in its scope. To find out more and to get advice that takes into account your own goals, needs and circumstances then contact us to get a quotation and review.
At the time of writing, Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) Count Financial Limited ABN 19 001 974 625, AFSL 227232. See our website for our Financial Services Guide and latest AFSL arrangements. Always read the Product Disclosure Statement issued by an Insurer before considering insurance.
