Protecting your income as a doctor is essential if you cannot work to ensure your livelihood and possessions are safe.
It may seem unlikely now, but 1 million people in the UK are left unable to work each year in the UK due to illness or injury, according to The Association of British Insurers. However, only 10% of the population protects their income from this possibility.
As doctors, you are aware of the unpredictability of life, and being without insurance makes your assets and your family vulnerable in the event of an accident, illness or worse.
It’s not worth waiting until something happens to protect you and your family should your income stop. Though the NHS will help in some regards, it’s best to have a safety net to protect your loved ones.
Here’s what income protection is and how we can help you with it in the unfortunate event that your income should stop.
What is income protection for doctors?
As an NHS employee, you are entitled to occupational sick pay. You may be entitled to up to six months at full pay and six months at half pay, depending on your length of service.
Income protection insurance for doctors is designed to begin payments when your sick pay period ends so that you can continue to meet your financial commitments, such as a mortgage and bills.
Somewhere between 50 to 70% of your gross earnings will be covered by income protection policies for doctors, whether you’re employed or self-employed. It is almost always paid out monthly, and the amount is usually tax-free. The amount you are paid will depend on your insurer and specific policy.
Who can obtain income protection for doctors?
If you are currently employed or self-employed doctor for the NHS, if you own a private practice, or if you are working as a partner or locum, you will be eligible for income protection insurance. As long as you cannot carry out your role due to illness or injury, the policy will pay out to you.
How does income protection for doctors work?
The income protection insurance complements your NHS sick pay. Currently, NHS sick pay works as follows:
- Year 1 – 1 month full pay and (after 4 months) two months half pay
- Year 2 – 2 months full pay and 2 months half pay
- Year 3 – 4 months full pay and 4 months half pay
- Year 4 and 5 – 5 months full pay and 5 months half pay
- Year 6 plus – 6 months full pay and 6 months half pay
When you drop to half pay your income protection payouts will begin and top you up to full pay. When the NHS sick pay stops, the insurance will rise to the full benefit of up to 70% of your gross monthly income. This way, you are never under or over insured, pay a fair monthly premium, and are given the support and cover you need when needed.
For self-employed doctors, it is even more vital to have income protection as there is no sick pay entitlement if you become unwell. The process is slightly more complicated in order to get payouts as soon as you need them, which is why it is worthwhile seeking the advice of an expert financial adviser to ensure you are covered in the event of sickness or injury.
Key types of income protection for doctors
Financial protection means peace of mind so that you can enjoy the important things in life. That peace of mind is afforded to you by ensuring you are covered in every event. Our medical financial advice is tailored to your personal and professional needs and circumstances. It covers:
- Income protection insurance: A monthly, tax-free sum if you’re unable to work due to injury or illness
- Life insurance: A cash sum, normally tax-free, paid out in the event of death
- Critical illness: A tax-free sum should you be diagnosed with a serious illness or have an accident which leaves you unable to work
With Chase de Vere, you will work with an independent financial adviser to discuss the most appropriate coverage for your individual situation.
Our advice is comprehensive, specialist, bespoke and ultimately protects you.
Discover more about our income protection for doctors today and get in touch for a free consultation.