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Income protection for doctors – getting the best deal

Two doctors who used Medics’ Money have saved themselves £4,608 and £6,480 respectively by using a Medics’ Money specialist Independent Financial adviser.

This week we met up with one our trusted independent financial advice firms that help Doctors with their insurance needs. The importance of Independent financial advice cannot be overstated. Unfortunately some of the biggest firms in the medical sector are not independent. Medics’ Money only recommends INDEPENDENT  advisers so you get the best deal. Below, Oliver explains two recent examples of how he’s  helped Medics’ Money Doctors:

Find your nearest Medics’ Money adviser here

Firstly, here is a recap of what Income Protection involves:

Income protection insurance is a long-term insurance policy designed to help you if you cannot work because you’re ill or injured. Each year in the UK over 1 million people find themselves unable to work due to an accident or illness (ABI 2017).

Unlike life insurance, it doesn’t matter if you have dependents such as children or a spouse. If you cannot afford your mortgage or bills without your income, then Income Protection may be needed.


Level of cover – the monthly amount you select that you wish to cover. Normally this would be enough to cover all of your outgoings or whatever is the maximum available (55% -60% of gross salary). If a claim is made, the payments each month are tax-free.

Term – At what age the cover ceases. Many people select their state pension retirement age of 68. However, to reduce costs you can select an earlier age with the idea being you would have other savings/investments/equity in property to fall back on. Do bear in mind though, the chances of a long-term illness increase as you get older.

Deferred period – the time you must wait before a payout is made. For NHS employed Doctors, certain insurers offer an NHS sick pay guarantee. This means the insurance will kick-in as soon as your sick pay reduces, which varies quite considerably for newly employed Doctors.

Increasing or Level? – Normally it is recommended you take out a policy that increases with inflation, but not with age. This means the policy will increase slightly each year in terms of price and the cover to keep pace with inflation.

Two Medics’ Money clients have saved themselves £4,608 and £6,480 respectively by using a Medics Money specialist Independent Financial adviser. The advice and switching policies cost the doctors involved nothing. The adviser was paid by the insurance company.

To keep it confidential, let’s call then Mr A and for the second example Mrs B.

Mr A approached me after his current Income Protection insurance was about to lapse. Mr A was given a presentation by a financial advice company that prides themselves on being focused on the medical sector, when he left university and joined his local NHS trust. He was then sold this policy by an adviser from this company, who are not independent so unfortunately he did not get the best deal. Fast-forward to his current age of 28, he had recently been travelling and stopped paying the premium. This meant the policy was about to lapse and he was presented with the option to make up the lost premiums, then continue paying his £40 per month. Mr A got in touch to see if we could beat this price. Could we? Of course we can – the exact same cover was just over £26 per month with another provider. Mr A decided to increase the cover he had and will be paying £28 per month moving forwards. A savings of £12 per month/£144 per year or, over the next 32 years – £4,608!!

Mrs B was a similar case but had some ongoing medical issues and also wanted additional life insurance for her mortgage and to protect her children. A similar scenario that she was provided with a quote from the same medically focused, restricted advice firm and was quoted £113 per month. Mrs B presented this quote to myself and after going out to the entire market, we found the same level of cover for £95 per month – the most competitive available for all of the cover she required. A saving of £18 per month/£216 per year or, over her 30 year term – £6,480!

Let Medics’ Money match you to a specialist INDEPENDENT financial adviser today for a free no obligation consultation.

Find your nearest Medics’ Money adviser here

IEP Financial Limited is authorised and regulated by the Financial Conduct Authority (FCA). This article does not constitute advice.

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