If you are a doctor or dentist without income protection you are missing a crucial element of financial planning. For those who have cover, ask yourself when was it last reviewed? Ensuring your insurance is up-to-date is as essential as having it.
Take 3 minutes from your day to read these 4 essential reasons to get a review.
What would you do without your income?
Income protection is one of the key financial products that a doctor or dentist should have behind them.
Essentially, it provides you and your family with an income in the event that you are unable to work and earn a living in the usual way.
Of course, like any insurance, it is a double edged sword. You hope that your house won’t be burgled which would mean drawing on your contents insurance yet you see the money leaving your bank account each month and feel a twinge of resentment.
The same goes for income protection insurance. Hopefully there will be no need to use it, however, should you be in the unfortunate position to be unable to work, the monthly premiums contributed to your income protection policy will instead be seen as an investment when you can retain a comfortable lifestyle and continue to support your family without disruptions.
4 reasons why regular reviews are necessary
It’s essential that existing policies are reviewed regularly and, at times, updated to give you the best cover for your current requirements.
Reason 1 – Is your current income covered?
Often income levels change year on year and your income protection cover should be reviewed accordingly to ensure you are correctly insured. Without a review, should you need to draw on your policy, you may have a shortfall from what is expected.
Reason 2 – What age do you plan to retire?
With the recent changes to the NHS Pension 2015, it is likely that you may end up working past age 60. Policies for income protection insurance for doctors and dentists have typically earmarked 60 as the age for retirement, in line with the NHS pension. However, if you think you may need or want to work past 60 there could be a requirement to update your policy. An annual review would take care of this.
Reason 3 – Changes to income protection insurance came in from 2013
Following legislation in December 2012, it is now an offence for companies to variate price according to gender. One consequence of this is that the cost of income protection insurance for women has decreased in many cases. Similar cases like this apply and a simple review with your financial adviser could save you money on your annual or monthly premium.
Reason 4 – New products are available
New products and contracts are released all the time and a simple review can entail whether your existing package is the most suitable and the best price.
Dental & Medical Financial Services are specialists in providing mortgage and financial advice to UK doctors and dentists. Protect your future financial position in the event of being unable to work. Call today to discuss a new or existing policy.
Tel: 01403 780 770