What is Life Insurance for Medical Professionals?
Life insurance for doctors provides comprehensive coverage in case of death, severe illness, or injury. The payouts from the policy can be used to pay for medical bills, income replacement, or maintain your family’s lifestyle.
Below are the types of life insurance policies available depending on your financial situation and existing coverage.
Life Insurance (Death Cover) – This policy pays a lump sum benefit to your beneficiaries when you pass away or are diagnosed with terminal illness.
Total and Permanent Disability (TPD) insurance – This policy pays a lump sum benefit when you become totally and permanently disabled and unable to work, due to severe illness or injury.
Trauma Insurance – Also referred to as Critical Illness, this policy pays a lump sum benefit when you suffer from a severe illness, such as cancer, stroke, or heart attack.
Income Protection – This policy typically pays up to 70% of your pre-disability income when you are unable to work due to illness or injury.
An expert insurance advisor can help you determine the right type of policy or combination of policies that will match your personal and business needs.
What Should Doctors Look for in a Life Insurance Policy?
Navigating your way through life insurance can be difficult, especially when you work in a high-stress environment. To help you assess your life insurance options, below are some of the factors that you can prioritise:
Blood-borne disease cover
This coverage provides a lump sum benefit if you accidentally contract a blood-borne disease while at work, and is vital to doctors for several reasons:
- Specifically designed for medical professionals who may accidentally contract blood-borne disease from work. Diseases such as HIV, Hepatitis B, or C are the common conditions that are covered.
- The diseases that you contract can have a long-term impact on your health—making you unfit for work.
- The payout can be used to cover out-of-pocket medical expenses or as income replacement.
Own occupation TPD cover
When taking out a TPD insurance policy, it is encouraged for medical professionals to choose a policy with an “own occupation” definition.
This type of TPD cover pays a lump sum benefit when you are unable to work in the same occupation that you had during the accident or illness.
Here are some factors that support the medical professionals:
- Offers the highest level of coverage among other definitions.
- Has comprehensive coverage that supports a higher chance of claim approval.
- Can be flexible when you return to work in a different occupation.
Other insurance options to consider
After taking out a life insurance policy, medical doctors may explore the following types of insurance for additional coverage.
- Medical indemnity cover: This is a specialised form of coverage commonly used by medical doctors to protect their finances in case someone claims against their medical duty.
- Health insurance: If you are practicing in private, consider taking out health insurance to cover the medical costs that are outside of Medicare and get access to a wider range of medical facilities.
- Income Protection Insurance: Typically pays up to 70% of your income when you become unable to work due to severe illness or injury.
