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As a doctor, you’re well aware from dealing with your patients that life can take unexpected turns.
The same could happen to you.
One day, you’re in the operating room or consulting with patients, and the next, you could be facing an illness or injury that sidelines you from your profession.
Income protection is designed to be your financial safety net in these scenarios, helping you maintain your lifestyle and cover your expenses whil you focus on getting back to work.
But what exactly does income protection involve, and why is it so crucial for doctors?
Here’s what you need to know.
Income protection insurance is your financial backup plan.
If you’re hit with any type illness or injury that stops you from doing your job as a GP, this insurance gives you money — typically up to 75% of your regular earnings – until you get back to working as a doctor.
You might be thinking that this sounds like critical illness cover?
Critical illness cover gives you a one-off lump sum payout for if you contract a specific illness listed on your policy.
On the other hand, income protection covers any illness that stops you working and pays out a regular income.
Thus helping you keep up with bills and everyday costs until you’re back on your feet.
The demanding nature of your work means that even a minor health issue could really impact your ability to earn.
The reality is, while public sector roles may offer some sick pay, it’s often not enough if you’re off work for an extended period.
Income protection steps in where sick pay falls short, ensuring your financial stability isn’t at risk if you’re out of work for months, or even years.
Did you know the average duration of an income protection claim is 7 years, and that Aviva have been paying a claim for the past 31 years.
When you’re shopping around for an income protection policy, here are some key features to consider:
This is particularly important for specialists.
If you can’t perform your specific role—say, as a surgeon or consultant—this type of cover ensures you still receive your benefit.
All of our policies are “own occupation” not “any occupation” cover.
The deferred period is the time between when you stop working and when your insurance starts paying out.
In other words your policy should kick in just when you would start to feel a financial pinch.
You can choose a deferred period of 4, 8, 13, 26 or 52 weeks.
Consider how long you want the policy to be in force.
You can choose a ceasing age of 55-70.
We recommend 65 at least.
Guaranteed premiums stay the same whereas reviewable premiums start off lower but can increase over time.
It’s worth weighing up the long-term cost versus the short-term savings. We prefer guaranteed (fixed premiums).
As a GP, your income will increase steadily so make sure you understand how you can increase your cover in the future.
Some insurers are more flexible than others.
Choosing the right policy isn’t just about getting the best price—it’s about making sure the cover fits your needs:
What would happen if you couldn’t work long term?
Calculate how much income you’d need to replace to keep up with your mortgage, bills, and other financial commitments.
Figure out how loing you could survive financially after exhausting all other avenues of income (sick pay, partner/family support, savings/investments etc)
Don’t settle for the first insurer you come across especially if you feel one policy is being forced on you.
Some “advisors” are in reality a tied agent of a particular insurer so they can’t offer choice.
We advise on policies from Aviva, Irish Life, New Ireland, Royal London and Zurich Life.
Get quotes from multiple providers and look at more than just the cost.
Consider the payout history, claim process, and the additional benefits on offer at each provider.
How to compare income protection providers?
Given the complexities involved, it’s worth consulting with a financial advisor who specialises in income protection.
They can help you navigate the various options and find the best fit for your situation.
We’d be happy to help 🙂
Dr. M, a self-employed consultant who suddenly found herself unable to work due to a serious RTA.
Without access to employer sick pay, or state illness benefits, her income would have dropped to zero.
Fortunately, her income protection policy provided her with a lifeline, covering 75% of her income.
Her policy also provided top class rehabiliation benefits.
Dr. R, a young GP diagnosed with Progressive MS who needed to take extended leave.
Her income protection policy, along with state illness benefit (€12,064), ensured her illness didn’t impact her financial stability.
It’s unlikely she will be able to go back to work as a GP so she intends to avail of the retraining benefits on offer through her provider.
These examples highlight just how vital income protection can be, providing a financial cushion when you need it most.
When these clients completed their application forms, they were in perfect and never thought it would happen to them.
One of the advantages of income protection in Ireland is that the premiums are tax-deductible.
If you’re paying tax at the higher rate, this will effectively reduce the cost of your policy by up to 40%, making it a more affordable form of protection.
In other words, if your monthly premium is €200 per month, at the end of the year you can claim tax relief of 40% redcucing the real cost of your policy to just €120 per month.
Here’s a nifty step-by-step guide to claiming tax relief on income protection.
As a doctor, you know prevention is better than cure.
Unfortunately, you can’t prevent some unexpected time off work but you can put income protection in place just in case.
Like all types of insurance, income protection isn’t just about safeguarding your income (hopefully you will never use it) – it’s about peace of mind.
It’s about knowing that if something unexpected happens, you’ll still be able to maintain your lifestyle, support your loved one, and pay your bills without the added stress of financial worries.
If you haven’t already, now’s the time to seriously consider income protection. It’s the best investment you can make in your own financial resilience.
And if you’re ready to explore your options, I’m here to help you find the policy that’s right for you.
Thanks for reading
Nick | Income Protection Specialist lion.ie
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As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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