Best Income Protection Insurance for Doctors

What is income protection insurance for doctors?

Income protection insurance for doctors and other medical professionals such as surgeons is a type of sick pay insurance that can cover up to 70% of your gross earnings if you are unable to work due to an illness or injury. The cover is designed to kick in once your NHS sick pay stops paying out, ensuring you receive an ongoing income so you're better able to maintain your outgoings such as your mortgage payment, rent, bills and groceries. Income protection insurance for doctors can come with additional benefits, such as a bespoke deferred period which mirrors your current NHS sick pay benefit as well as the removal of special exclusions such as HIV.

You can get income protection insurance for doctors so long as you are employed as a doctor for the NHS, either in your own practice or as a partner or locum. Income protection insurance for doctors is sold on an ‘own occupation' definition, which means that so long as you are unable to carry out your own job (due to an accident or ill health) then the policy will pay out. This is far more comprehensive than an ‘any occupation' definition, which would only pay out if you were unable to carry out any occupational duties.

Income protection insurance for doctors vs NHS sick pay

Your NHS sick pay entitlement will depend on your length of service, with the maximum sick pay entitlement being 6 months half pay and 6 months full pay for those that have served 6 years or more. An income protection insurance for doctors policy is designed to kick in once your NHS sick pay benefits stop, meaning you are covered if you were to suffer a long-term illness. Check out our table in the next section for a breakdown of how income protection insurance for doctors is paid.

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How does income protection for doctors work?

Income protection insurance for doctors is a specialist type of sick pay insurance that is designed to pay out depending on when your NHS sick pay stops. The amount of sick pay you receive from the NHS is based on your length of service, meaning the longer you have worked for the NHS, the longer you could receive sick pay for. Income protection insurance for doctors is a flexible type of sick pay insurance that adapts each year as your benefits change.

So, after your first year with the NHS, you would receive a maximum sick pay benefit of 1 month of full pay and 2 months of half pay. However, after year 2, your benefits improve and you would receive 2 months full pay and 2 months half pay should you be sick and unable to work. Ideally, you would want a private sick pay insurance policy where the deferred period (the waiting period before you can claim) changes in line with your NHS benefits, otherwise, you could easily be over or under-insured.

We have provided a table below which explains the current NHS sick pay benefit entitlement for doctors based on length of service. It also includes when an income protection insurance for doctors policy would usually kick in:

With income protection insurance for doctors, you can insure up to around 70% of your gross income. Additionally, you may be entitled to receive Statutory Sick Pay on top (currently £116.75 per week, paid for up to a maximum of 28 weeks).

You can choose how long you want your Income protection insurance for doctors policy to pay out; this is called the policy term, and while most people elect to run the policy until their intended retirement date, reducing the term will help to reduce the cost of the cover. You could instead choose a ‘short term' income protection policy, however, these types of policies will only pay out for a maximum of 1, 2 or 5 years and so won't cover you adequately if you were to suffer a long term illness.

Another way to reduce the cost of income protection cover for doctors' insurance is to set a longer deferred period (the waiting period before a claim can be made) – the monthly premiums. You would need to wait longer before you could claim, however, this could work out fine for those who have more comprehensive NHS sick pay benefits and those who have savings that they could fall back on.

What does income protection insurance for doctors cover?

Income protection insurance for doctors will pay out a guaranteed income in the event that you are unable to work due to an accident or illness. You would need to complete the pre-agreed deferred period before you can claim and in order to process your claim, the insurance company is likely to want to write to your GP and/or your employer.

Does income protection insurance for doctors pay out for HIV?

Yes, if you take a specialist income protection insurance policy for doctors, then it should have a specific clause that guarantees to pay out in the event that you contract HIV through a needle stick injury in your work setting. We explain the best way to buy income protection insurance for doctors below.

What is excluded from an income protection insurance policy for doctors?

If you have suffered any medical condition or complication in the last 5 years it is possible that an exclusion could be applied.

Even if you were to have an exclusion applied to your income protection insurance for doctors' policy, there may be an opportunity to challenge the exclusion after a period of time has passed. If, after taking a policy out, you go on to make a full recovery and have no symptoms and no longer require treatment, you could look to remove the exclusion.

Policies would also usually exclude any claim arising from self-inflicted injuries and illnesses or injuries caused by misuse of alcohol or drugs.

Are doctors' income protection insurance premiums fixed?

Premiums for most types of income protection insurance can be fixed but you will usually be given a choice You can choose between a reviewable premium, a guaranteed premium or an age-banded premium and we explain each of the three types of premium below:

Doctor's income protection premium types

How much does income protection insurance for doctors cost?

The cost of income protection insurance for doctors will depend on a number of factors including the type of doctor you are, your age, your health, the type of premium, how much cover you need and over how long you want the cover to run for.

Roughly speaking, a healthy doctor could get around £2,500 of income protection insurance for between £30 and £100 per month, dependent on age and the type of cover required. The best way to determine the actual income protection cost is to speak to an independent specialist* and get a personalised quote. We explain in the next section how to get the best quotes for income protection insurance for doctors.

Best and cheapest income protection insurance for doctors

The best way to ensure you get the most comprehensive income protection insurance for doctors' cover (and at the best price) is to speak to an independent income protection specialist. LifeSearch, one of the UK's largest specialist independent brokers will be able to advise you on the best plan for you. Its team of experienced advisers will guide you through the whole process, explaining the options available to you as well as helping to complete the application forms. Simply complete this short form* and they will call you back at a time that is convenient for you. Additionally, if you decide to take out a policy, LifeSearch will give you up to £100 cashback.

Alternatives to Income protection insurance for doctors

Income protection insurance for doctors is the most comprehensive type of sick pay insurance available and ensures you can receive a guaranteed income, right up until retirement if required. You can tailor your income protection insurance if you wish to reduce the cost of it. The cost of your doctor's income protection cover can be fixed and guaranteed but you can also choose a cheaper type of premium that may change from time to time. These include reviewable and age-banded premiums. You can also choose budget options that are referred to as short-term or limited-period income protection insurance, which will secure some income replacement for a limited period.

If you wish to consider an alternative type of insurance that will provide some financial benefits if you become ill or injured, you may also benefit from reading about critical illness insurance – a policy that pays out a guaranteed sum if you suffer one of the defined illnesses on the policy. This type of policy is usually taken out in addition to income protection insurance and not instead of, as it does not provide the same level of protection.

Another type of sickness insurance is a policy called ‘Accident & Sickness' insurance. This type of policy is usually sold to protect mortgage repayments and bills and will only pay out for a maximum of one or two years. This type of policy does not offer the same flexibility as income protection insurance for doctors, as the waiting period is usually fixed at 1 month and can't be tailored alongside your NHS sick pay benefit. Also, most accident and sickness insurance policies are annually renewable, so they don't offer the same long-term security of coverage that income protection insurance does. Importantly, income protection insurance will continue to cover you even if you make a claim.

Which providers offer income protection insurance for doctors?

A number of insurance providers offer income protection for doctors but some policies are better tailored to the needs of a doctor. Specific risks such as needle stick injury can be covered and the benefit can paid in line with how your NHS sick pay will work based on your length of service.

There is not one income protection insurance provider that is head and shoulders above the rest. Every provider offers a range of flexible benefits so ultimately, the decision is likely to come down to cost. Speak to an independent income protection insurance specialist* so that you can be guided through the process and ensure you are buying the best policy for your own circumstances. Below we list some policy features and benefits from a number of doctor income protection providers.

Summary of income protection insurance for doctors by provider

For more information on income protection insurance providers, check out our article ‘Compare the best 10 Income Protection policies in the UK'.

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