Treating patients who are unable to work because of an illness or injury is part of a doctor’s daily job, so they probably understand better than most the need for comprehensive income protection. And just because they work in medicine, doesn’t mean they’re immune to ill health and accidents which could stop them from earning. 
Accordingly, some unique features and benefits have been designed for this special Income Protection plan, especially for doctors and surgeons. This plan pays out when it matters and represents quality protection. 
 
Whether you are employed by the NHS or in private practice or a combination of both, you should consider protecting your earnings against the risk of long-term sickness or injury. 
 
If employed by the NHS and assuming you have five years of service, you will only receive sick-pay for a maximum of 12 months - full pay for the initial six months of absence from work, followed by half pay for the ensuing six months. 
 
How it works: 
If you can’t work due to an accident or sickness, you’ll be paid a tax-free monthly income (up to 60Hee% of your current gross earnings). At outset, you’ll decide how long you would wait before the policy starts paying you (your ‘waiting period’) and then your claim will be paid until you recover, or your insurance policy comes to an end (whichever comes first). 
 
NHS Sick Pay Guarantee: 
NHS Sick Pay entitlement changes with each year of service, often making it difficult to choose the right ‘waiting period’ for an Income Protection plan. But with the Sick Pay Guarantee, you can choose a 12 month waiting period and then you would be paid out earlier under a claim, based on how long you’ve been working for the NHS. The below table outlines current NHS Sick Pay entitlement and what benefit you could receive: 
LENGTH OF NHS SERVICE 
NHS SICK PAY  
ENTITLEMENT 
50% SICK PAY  
GUARANTEE PAID AFTER 
100% SICK PAY  
GUARANTEE PAID AFTER 
Up to 4 months 
One month 
1 month 
Up to one year 
One months' full pay and  
two months' half pay 
1 month 
3 months 
Over 1 year and up to 2 years 
Two months' full pay and  
two months' half pay 
2 months 
4 months 
Over 2 years and up to 3 years 
Four months' full pay and  
four months' half pay 
4 months 
8 months 
Over 3 years and up to 5 years 
Five months' full pay and  
five months' half pay 
5 months 
10 months 
Over 5 years 
Six months' full pay and  
six months' half pay 
6 months 
12 months 
 
Here's an example of how the NHS Sick Pay Guarantee would work: 
Raj has worked as an NHS doctor for four years and is earning £60,000 per annum. 
 
He selects the full 60% of pre-tax income allowed £36,000 / £3,000 per month as his income protection benefit, with a 12 month waiting period. 
 
For the first five months he receives his sick pay from the NHS (100% of his post-tax income). Then for the next five months he receives 50% of his post-tax income (half pay from the NHS) plus 50% of his Income Protection benefit (£1,500). 
 
Despite the NHS Sick Pay plus the Income Protection Benefit adding up to more than the 60% of the pre-tax income, there won't be any deductions. 
 
After ten months, Raj's NHS Sick Pay stops and he will be paid 100% of his Income Protection Benefit i.e. £3,000 a month, tax-free. 
 
No HIV/AIDS exclusion: 
An occupational risk of being a doctor or surgeon is being exposed to needle-stick injuries; this plan doesn’t have HIV/AIDS exclusion, so you will be fully covered. 
 
Sabbatical break cover: 
This special feature allows you to take an extended break (up to two years) away from your role in order to study, work abroad or simply learn new skills. As long as you continue to pay the premiums, you’ll still benefit from own occupation cover – in fact, if you claim, you’ll be treated as if you were still working in your normal doctor or surgeon role. Also, there are no restrictions on where you can go or the type of work/activity you perform whilst you’re away. And you don’t even need to tell the insurance company that you are taking a sabbatical – if you make a claim, you will only be asked for proof that your sabbatical was approved by your employer, and that your job was kept open for you. 
 
Overseas cover: 
If you are required to work abroad in the future, you will still be covered under the plan – regardless of where your career takes you (providing you are in receipt of UK earnings). If, when you claim, you are in Europe, USA, Canada, Australia or New Zealand, there will be no limitations on how long you’ll be paid under the policy. But if you are working elsewhere, you would only be paid for 26 weeks. 
 
Back to work support: 
If you are receiving benefit, as a result of a claim, you could be eligible for rehabilitation support and advice, thus preparing you for your return to work. And as a medical professional, you will probably appreciate this support more than most. 
 
Budget option available: 
Cost doesn’t have to be an issue for you if you still want to benefit from quality protection. A budget version of the plan offers the same benefits as the standard plan, with only one difference: you’ll only be paid for any one claim for a maximum of 24 months. You can make, however, as many claims as you need to - even for the same condition (providing you have been back at work for at least six months between claims). 
 
Why do you need Income Protection? 
According to Which? (consumer advice magazine) ‘everyone of working age should consider Income Protection’, because no matter how well you feel today, ill health or an accident can happen to anyone, at any time. And if it does; it can be tough to cope financially as the bills don’t stop coming in just because you’re ill. Protecting your income is especially important if you have family or people who rely on it. If you stopped getting paid, what would happen to the lifestyle you all currently enjoy? 
Contact: NIgel Osgood 
E: nigel@afpmortgages.co.uk 
T: 01628 594433 
This is an overview only. You will be referred to the policy summary and policy conditions for full details. How much tax you pay depends on your personal circumstances. Any references made to taxation are based on the insurance company’s understanding of current legislation and HM Revenue & Customs practice, which can change. 
Share this post:

Leave a comment: 

Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings