As a doctor or other medical professional, you are probably all too aware of the financial consequences of ill health or accident. There is no doubt you have spoken to your patients before at length about their recovery periods, taking time off work or in some cases having to stop work altogether. With that in mind, have you thought about what would happen if you had to take time off work due to illness or injury?
Doctors can sometimes be viewed as a high risk occupation, working with sometimes dangerous equipment and in close proximity to drugs and hazardous materials. With that in mind, it’s important that you take the time to find the right life insurance for doctors, or other financial protection methods.
What types of financial protection are available for doctors?
As a doctor or medical professional, having a robust financial plan in place can help to put you and your family’s minds at rest. It is likely you might have niche or complex needs, depending on the type of medical profession you practice. You will know better than anyone that illness or worse can happen to anyone at any time, and when it does the financial fallout can be devastating.
It’s important that you take the necessary steps to protect yourself and your family from every eventuality, particularly if you work in a high-risk environment. As a doctor, you have a number of financial protection policies available, including life insurance, critical illness cover and income protection.
Understanding the different types of cover
Life insurance
When it comes to taking out life insurance, there are two main types known as level term and decreasing term life insurance. Both will pay out a lump sum in the event of your passing, but the cover varies between the two. Level term insurance will pay out the same amount throughout the term, while decreasing term means the amount you are covered for will decrease over time. Typically, this is useful for covering your mortgage, as the amount you owe on your mortgage will reduce over the years.
The amount of life cover you take out should depend on your individual circumstances, including whether you have dependents and financial responsibilities to take care of. It’s important to consider how much financial support your family would need in your absence. Depending on your role in the medical industry and the lifestyle your family is used to, this could be substantial.
Critical illness cover
Working in a medical environment means you will have seen countless patients undergo surgery or come in with serious conditions. Being able to protect yourself financially, if you have to take time off work due to illness, can be a huge relief while you recover.
Critical illness cover can provide you with a pay-out if you become critically ill during the policy term, which you use to cover health costs, monthly expenses or lost income. Most policies cover a wide range of conditions, including some stages of cancer, heart attacks, multiple sclerosis, Parkinson’s and strokes. Unfortunately no one can predict what’s around the corner, not even doctors, so it can be incredibly beneficial to have this type of protection in place.
Income protection
Similarly, if you have fallen ill or had an accident and have to take time off work, having some financial support during that time could make all the difference. Income protection will typically pay out a percentage of your salary each month, allowing you to continue paying your mortgage, bills or other outgoings.
This can be incredibly helpful as many things can happen beyond your control. Often with an income protection policy, a broad range of illnesses are covered including mental health or stress-related problems. There are many insurance providers who also offer additional benefits for medical professionals. This can include no exclusion for HIV or AIDS, as needlestick injuries can be one of the most common occupational hazards.
Interesting related article: “What is life insurance?”