Income protection for doctors is quite different from life insurance. Life insurance will pay out a lump sum on your death whereas income protection can generate a monthly income until you are fit enough to return to work. Just like other professions, life insurance has historically been more popular. However professionals are now realising, whether they have a family or not, having a financial safety net, while you’re still alive, is important.
Like many professions, doctors earnings increase dramatically once you move on from junior status whether you work for the NHS or not. With higher earnings usually come increased financial obligations in the form of a mortgage, a nice car and the other trappings of a successful lifestyle.
Yet all this can be in jeopardy if for any reason you are unable to work. In the private sector you may or may not have long term sickness cover. But certainly in the NHS statutory sick pay does not provide long term cover and full entitlement only starts after 5 years’ service. So what sort of provision do you get? The maximum is 12 months sick leave but the last 6 months will only be at 50% of your normal salary. Beyond that you have to rely on the state.
By contrast, income protection insurance will continue to pay out until you are fit enough to return to work whether it’s 2 years or 4. With DG Mutual you can design cover to suit your circumstances. If you work for the NHS, for example, you could opt for a deferred period that dove tails with your NHS cover. You can also choose to cover up to 66% of your pre-tax salary and a lump sum is paid at the end of the policy – usually on retirement. And with DG Mutual there are also no occupational loadings.
Being a doctor is one of the most rewarding of careers. But the hours are long and the work stressful. With thousands of people signing on sick each day in the UK, it would be unwise to bet against not becoming ill at some point during your career. Unlike Critical Illness Cover, Income Protection pays out against a wide range of conditions including those relating to stress, cancer, and heart disease.