Income Protection Insurance for Medical Practitioners
When a General Medical Practitioner refers a patient to you, the patient depends on your expertise to help him or her get better. Whether it is curing an ailment or helping a patient recover from an injury, your role is essential in ensuring the patient's speedy recovery.
But while you spend more of your time dealing with the conditions of others, have you ever considered taking care of your own health as well? Yes, you may be covered by regular health insurance, but would you be able to replace your income if you're unable to work because of an illness or injury? That is beyond the scope of your health insurance, so you need a separate policy for that. Enter income protection insurance. It is a type of insurance policy that will provide you with income when you cannot work and earn income because of an illness or an injury.
How Income Protection Works
When you lodge an insurance claim, your insurance provider will send you monthly payments of about 75% of your income. The actual percentage may be higher or lower depending on the price of your premiums. You will be able to receive benefits for a specific period, which also depends on the cost of your premiums. The rule of thumb here is that the higher your premiums, the longer your benefit period will be. However, you won't be able to receive your payouts immediately. There is what is called a waiting period after which you will start receiving your monthly payouts. It can be 14, 30, 60, 90 days or more, with shorter waiting periods costing more.
Indemnity/Agreed Value Policy
When applying for income protection insurance, your insurer will let you choose between indemnity and agreed value policies. Which one should you choose? Indemnity insurance is ideal if you work as a hospital staff and/or receive regular income, since your benefit will depend on your average salary. So if your salary increases, so will your coverage and benefit. It is also more affordable than agreed value policy, making it the more attractive option.
On the other hand, the agreed value policy is better if you are self-employed or work at your own clinic. With this option, you will decide with your insurer how much you will receive when you lodge an insurance claim. The value is fixed, so you are assured to receive the agreed amount despite changes in your income. It may be more expensive than indemnity policy, but it provides you with peace of mind with regards to your specific situation.
Get Income Protection Insurance Today!
Contact us on 1300 793 143 and we will organize you quotes from up to 9 Insurance companies in under 10 minutes. Our consultants will talk you through the process. Contact us today for more details!