In a demanding and often unpredictable profession like medicine, your ability to work is your most valuable asset. Whether you’re a hospital doctor, GP, or locum, your income underpins both your lifestyle and, in many cases, your family’s financial security. Income protection insurance is designed to safeguard that income if illness or injury prevents you from working – and for medical professionals, it can be a vital part of long-term financial planning.
What is income protection insurance?
Income protection is a long-term insurance policy that pays out a regular income if you’re unable to work due to illness or injury. Key features include:
- Cover for 55–60% of your gross monthly income
- Payments that continue until you return to work, retire, or your policy ends
- “Own occupation” cover – so you’re protected if you can’t do your specific role as a doctor
- A deferred period that usually aligns with your sick pay – up to 12 months in the NHS after five years’ service
Who needs income protection?
You’re likely to benefit from income protection if any of the following apply:
- You rely on your income to cover your mortgage, rent, or other living expenses
- You don’t have substantial savings or financial support from family
- You work as a GP partner, locum, or in private practice without comprehensive sick pay benefits
- You want reassurance that a health issue won’t compromise your long-term financial plans
You might not need income protection if you have significant savings or investments to rely on, or if early retirement benefits are available and sufficient. But for many medical professionals, that isn’t the case – and income protection provides an important safety net.
What about NHS sick pay?
NHS sick pay increases with years of service. In your first year, you’re entitled to one month’s full pay and two months’ half pay. After five years, this increases to six months full pay followed by six months half pay.
Doctors working as locums or in private practice are not usually entitled to NHS sick pay, which makes personal income protection especially important.
Why it’s worth reviewing your cover with an IFA
Even if you already have income protection in place, it’s important to ensure the policy still reflects your current role, earnings, and circumstances. That’s where Chase de Vere can help. As independent financial advisers, we offer:
- Whole-of-market access – we compare options from across the market, not just a limited range of providers
- No additional cost to you – we’re typically paid by commission from the insurer
- Tailored advice – we help you align your policy with your current income, NHS sick pay, and retirement goals
- Policy reviews – as your career evolves, your protection should too
- Unbiased recommendations – we’re not tied to any provider, so we can focus on what’s right for you
Top tips for doctors
- Apply early – younger and healthier applicants typically benefit from lower premiums
- Match your deferred period to your NHS sick pay arrangements
- Choose “own occupation” cover – so you’re protected in your specific role
- Review your policy regularly – especially after changes to your job, income, or personal circumstances
- Make sure your policy ends in line with your intended retirement age, not just the state pension age
Ready to review or arrange your income protection?
Whether you’re early in your career or more established, it’s important to ensure your income is properly protected. At Chase de Vere, our independent financial advisers can help you find the right policy – or review your existing one – to ensure it remains fit for purpose and cost-effective.
Get in touch today to arrange a no-obligation conversation.
The above does not constitute individual financial advice.
Content correct at time of writing.