Healing the Healers: Income Protection Insurance Considerations for Doctors and Dentists

Why are doctors and dentists classified differently?

Doctors and dentists often have their own separate occupation code for the purposes of income protection underwriting. This is because of the constant exposure to ill people, and the slightly increased threat of violence through dealing with people in stressful situations.

Do I need a doctor/dentist-specific policy?

Start researching income protection and you'll quickly find that there are companies that provide policies labeled specifically as being for doctors and dentists.

However, this doesn't mean that all other policies are unsuitable - if you choose the right options, you're free to go with any income protection insurance policy with peace of mind.

What features do doctors and dentists need in income protection insurance?

Due to the unique occupational hazards in being a doctor or dentist, you should make sure that your income protection policy:

* Covers blood born diseases like HIV or hepatitis. Health professionals are at a higher risk of catching blood borne diseases; these would prevent your from working at your usual job even though you are technically quite able to work.

* Covers needlestick injuries. If your income protection policy won't cover you for contracting a disease from a needlestick injury, look into getting a trauma insurance policy that will.

Agreed value or indemnity value policies for doctors and dentists?

Whether it is more sensible to choose an agreed value or indemnity value policy will depend completely on your working situation, just as it does for ordinary working Australians.

If you own your own practice and your income varies from month to month and year to year, you should consider an agreed value policy. You'll only need to prove your income at the start of the policy, then if you have to make a claim it will be based on the evidence already supplied.

If you are on a salary in a government job, or have a steady salary, you may take out an indemnity value policy (for which premiums are usually a little cheaper). With these policies you simply provide your most recent pay slips and tax return at claim time, and are paid a benefit based on your income at the time to a maximum of your monthly benefit.

Being a doctor or dentist is quite a specialist profession and and one in which you should pay special attention to your income protection insurance! Next time you are looking for annuity, be sure to take this into consideration.

Pamela is a passionate writer, specializing in life insurance and annuity finance articles