What Medical Professionals Need to Know About Income Protection Insurance
If you are a professional engaged in the health industry, it is a must to get an insurance policy in case you cannot work due to reasons like sickness or accidents.
For that reason, insurance policies such as Doctors Income Protection are vital to have financial peace of mind in times of need. For those in the medical field, this insurance is more critical because they are most likely to be exposed to bacteria, germs, and other hazardous elements.
What is income protection insurance?
Many forms of insurances cover various aspects of life, such as medical, property, and life insurance. Income protection insurance helps you to be financially stable even when you are unable to work. Like what most people would say, preparing for something unfortunate is not fun, but it is vital.
Why is it essential for health professionals?
People working in the health industry expose themselves to more dangerous elements than other professions. Doctors, nurses, and paramedics will have direct contact with patients who may carry blood-borne viruses such as hepatitis and HIV. They also come in contact with types of machinery and equipment that pose chemical, physical, and psychological hazards.
A simple blood splash or dust inhalation poses a risk for these health professionals, which may affect their ability to work. As such, they need to have income protection insurance.
What does income protection insurance cover?
Different insurance policies have different features; for those belonging to the same class as Doctors Income Protection, the following are covered:
- Total inability to report for work due to an illness or an injury
- Partial or reduced failure to report for work due to a disease or an injury
- Acquisition of a permanent disability that affects the ability to do work
Are there different types of income protection insurance?
There are two kinds of income protection insurance that you can choose from.
- Agreed Value Insurance - For this type of insurance, what you will get is a payout solely based on your income by the time that you applied for the insurance. It mostly consists of 75% of your income’s total value. It is a more expensive option.
- Indemnity Value - This policy is the more common option for health professionals. It is adjusted based on your income by the time that you claimed the insurance instead of the application. It is the more affordable form of an insurance policy.
When can you claim income protection insurance?
Much like how workers’ compensation works, there is a need for employers or insurers to assure that there is a disability that renders you unable to report for work. There is currently no clear-cut definition of disability, but most insurers follow these two types of assessments:
- Duties-based disability where the disability makes you unable to perform the duties which are directly related to your occupation
- Hours-based disability where the disability does not wholly prevent you from doing your work but merely reduces your working hours
Both of these classifications may also be called as total or partial disability, respectively. Knowing all these facts about income protection insurance, medical professionals should certainly obtain one for themselves. You will never know what will happen to your work, which is why financial protection is significant.