This does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Dental and Medical Financial Services Limited is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.
As a doctor, do you even need income protection? How much will a protection policy cost you? These are the questions most asked when it comes to financial planning. Here we explore income protection and answer these common questions.
Do doctors need income protection?
If you have a family to support or regular monthly payments to meet, then you’ll need to have a plan in place to deal with any unexpected circumstances.
Income protection provides the same thing for anyone who takes out cover: peace of mind that your family will be protected in the event that you get sick or injured and can no longer work. It’s not exactly the most cheerful topic to think about, but having a plan in place in case something happens to you is an essential aspect of financial planning.
Even if you have savings, there is no way to tell how long a certain event could keep you out of work. If you don’t have income protection and your savings run out, you might need to pull from other areas to help stay afloat. Emergency funds is a short-term solution so the next solution might be releasing equity in your home or even tapping into retirement funds.
But since there’s a way to protect yourself and your family against losing your income and hard-earned savings, you should consider the benefits securing an income protection policy.
The benefits of income protection
- Provides a monthly income in the event of an accident, injury, or illness that prevents you from working
- Regular payouts so you can maintain your existing lifestyle
- More comprehensive coverage than the conditions included in critical illness cover
- Policies can be linked to your own occupation and income so you can have a policy that pays out if you can’t perform your specific job or you can have a policy that pays out if you can’t perform any job
- You’re allowed to submit multiple claims within the period of your policy term, and you can continue to claim until retirement or death.
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How much is Income Protection cover?
How much your exact premium will be depends on a number of factors, such as:
- When you take out your policy
- How much coverage you require, and
- Your health at the time of taking out cover.
If cost is an issue, there are affordable policies out there. But the best thing to do is to take out a policy as early as possible. The younger you are, the cheaper coverage is, and as premiums are fixed for the entire length of the policy, it’s a sound financial decision to get protected as soon as you can.
Time to get protected
The first step to getting protected is to speak with an independent financial adviser. You’ll be able to ask questions about different policy types and get help deciding what coverage is right for you as a medical professional.
Dental & Medical Financial Services has worked with hundreds of doctors to help them to protect their income and wealth as part of a comprehensive financial plan. Contact us today on Medics’ Money to discuss your requirements.
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