Income protection for doctors: Why is it so important?

There’s a good reason doctors and other medical professions are among society’s most revered and respected occupations. They heal, care for us, and help us navigate many of life’s uncertainties. However, between working long hours and consistently making decisions that can literally mean the difference between life and death, a medical professional’s job can be extremely stressful. According to The Medical Journal of Australia, research has shown that 32% of doctors in Australia have reported high levels of emotional exhaustion.  

The nature of their job means that doctors are more prone to mental burnout, in addition to the increased risk of illness from constant exposure to their sick patients. Consequently, doctors must ensure they’re adequately cared for if they have to take an extended absence from work. 

With that in mind, let’s look at income protection insurance for doctors and why it’s so important. 

What is income protection for doctor?

Doctors can get income protection insurance to cover their income if they can’t work due to illness or injury. 

If you make a claim, income protection cover ensures you receive monthly payments. These payments are based on a portion of your salary. You will continue to receive these payments until you can go back to work or until the policy’s benefit period ends.

Is doctor’s income insurance worth it?

Income protection insurance is very much worth it, as it provides the following benefits:

• Your living expenses will be covered: If you’re recovering from a serious illness or accident, the last thing you need to worry about is how you’ll pay your mortgage and utility bills – especially with the cost of living rising so rapidly. Income protection cover ensures that getting better is your top priority
• You’re not dependent on your employer: while some jobs offer comprehensive sickness benefits, some don’t. And even if your employer supports you if you fall sick, they won’t do so indefinitely. The best income protection for doctors will cover you until you return to work or reach retirement age. 
• Protect your investment. Becoming a doctor required a significant amount of time, effort, and money. It was a substantial investment in yourself. Income protection insurance safeguards your investment and guarantees a steady income in case of illness or accidents.
• Peace of mind: while your income protection insurance is protecting you against an uncertain future, in the present, your mind will be at ease knowing you have another layer of financial support and security.  

Why do doctors need income protection?

Income protection insurance is particularly important for doctors because their job is physically and mentally stressful. 

People in the medical profession are renowned for working long hours and not getting enough sleep – both of which make them more susceptible to illness. But as if this wasn’t enough, doctors are constantly exposed to sick people, increasing the chances of getting sick even further. Additionally, some medical personnel risk needle-stick injuries from having their skin penetrated by syringes and the infections accompanying them.

However, as physically taxing as a doctor’s work is, it can be even more mentally and emotionally challenging. As well as working long hours, many medical professionals work in high-pressure situations. many doctors are on call and must respond to emergencies immediately, so they don’t get to rest, recover, and recharge like those in other occupations. As a result, doctors are more at risk of burnout, anxiety, and stress.

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Will income protection insurance cover doctors?

Income protection insurance will indeed cover doctors in the event they become ill and injured – but it’s crucial to purchase the right policy. Because of the stressful nature of jobs in the medical profession, the best income protection insurance for doctors is only offered by some insurance providers.  

How much is income protection insurance for doctors?

The cost of your monthly insurance premiums will be influenced by a number of factors, with the most important being:

• Income – and the percentage you want to cover, i.e., the monthly benefit.
• Age
• Gender
• Health
• If you’re a smoker
• Length of benefit period, i.e., how long you receive payments
• Waiting period, i.e., how long until payments start

Additionally, an income protection policy is typically tax deductible, if you pay for your premiums personally. Subsequently, it’s vital to important to structure your income protection policies correctly to ensure you receive the full range of tax perks available to you.

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What income protection should doctors buy?

The best income protection insurance for doctors is a policy that covers you against not being able to specifically work as a doctor. In regards to occupation, income protection policies for doctors can work in three ways:

• Own occupation: you can’t perform your occupation

• Suited occupation: you can’t do any job suited to your skills and experience
• Any occupation: you’re unable to do any type of work

It’s important to take up an income protection policy with the correct definition for you. Speak to a financial adviser to understand the differences and get the right policy for your role and responsibilities.

To make sure you get the best income protection insurance for doctors, encompassing the best coverage, lowest monthly premiums and best chance of making a successful claim, it’s wise to consult an insurance broker or financial adviser. 

Still have some question? Explore more about Income protection insurance: All your questions answered

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If you’d like to know more about the best income protection insurance companies for doctors, as well as advice on mortgages, taxes, or any other aspect of financial planning,  contact us to schedule your consultation, and we’ll be happy to help

Please note that all the while the information provided above is factual in nature, it’s also intended to apply generally, and to a broad audience. Subsequently, the information hasn’t taken your personal circumstances or goals into consideration.

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