Income Protection Insurance pays you a regular, monthly income should you no longer be able to work. It is designed to replace your monthly take-home salary and should cover your every day, monthly and long term expenses. Income Protection Insurance for Doctors has been tailored to suit doctors’ unique work and health risks.
What You Should Know
Be warned, that one doctor’s policy is not the same as the next, so make sure that you choose an insurance provider that offers cover tailored to your specific area of risk. Monthly instalments are calculated on earnings 12 months prior to illness or injury, and premium paid; and, it can take 60 to 120 days for the process to kick into gear. It is important to note that needlestick injuries and Hepatitis B and C are not automatically covered, so always read the small print, check all stipulations and, most importantly, be clear on what constitutes being unable to work.
To Claim or Not to Claim
Claims can be made once a doctor is completely unable to do the job that he was doing before he became ill or injured. Total disability and total loss of monthly income need to be proven. Most policies have a waiting period of a minimum of 30 days, meaning that you can only make a claim if you are still incapacitated 30 days after the illness/injury has occurred. A claim cannot be made if a doctor is working part-time or has another viable source of income.
Is It for You?
Doctors need not take out income protection insurance if they have an alternative source of income to bankroll their period of disability. Illness and injury insurance may be included in your employment contract, so check that out. Mortgage insurance would also negate the need for Income Protection Insurance.
Doctors are high-earners and often the sole breadwinners, making any extended loss of earnings a severe threat to the financial wellbeing of their dependents. In such cases, income protection insurance would be advisable.
In a profession where the risk to one’s health is part of the job, income protection insurance would be financially responsible.