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For doctors and medical specialists
Reviewed by Panbo Ye, CFP®, FCPA Last reviewed
We help doctors check that their income protection fits how they work, earn and structure their income, before they need to claim.
Your first meeting is at no cost, with no obligation · English or Mandarin
At a glance
| Your first meeting | Free, no obligation. We look at the cover you have and tell you plainly whether anything needs attention. |
|---|---|
| What we look at | Your existing income protection, life, TPD and trauma cover: the occupation definitions, how much you are insured for, waiting and benefit periods, premium type, and how the cover fits your tax structure. |
| Who you’ll work with | Our financial adviser leads the review, and our tax team checks how your income is earned and structured. If a change is worth making, our advice is set out in writing in a Statement of Advice before anything changes. |
| Cost | The first meeting is at no cost and no obligation. See how insurance advice is paid for. |
Things you need to know
These are the points we see doctors overlook most often. They are general information only; how they apply to you depends on your policy wording and your circumstances. Where we need to, we cover recent changes too.
For policies issued since October 2021, insurers generally work out your benefit from what you earned in the 12 months before you claim, not your best year. A rising income, parental leave or a year of training can all change what you would receive.
Newer policies typically replace up to 65% or 70% of your pre-disability income, depending on the insurer and the policy, and some pay a higher percentage for the first six months. You cannot insure more than you earn, so the right amount is not always the maximum.
An own-occupation definition looks at whether you can do the work of your profession or specialty. Under any-occupation, a surgeon who can no longer operate may still be seen as able to work in a non-clinical role. On newer policies, the test usually becomes stricter after two years on claim.
Premiums for cover held outside super are generally tax-deductible and benefits are taxed as income. Cover inside super is paid from your retirement savings and may have narrower definitions or shorter benefit periods.
If you contract under a service agreement or practise through a company or trust, insurers look at the income you personally earn. Your adviser and accountant should work together so you are not under-insured, or paying for cover you could never claim. With indemnity cover, if your insured amount is higher than the income you could prove at claim time, you may be paying premiums for a benefit you could never receive. We check your actual and expected income, and how it is structured, so you are not overpaying for your insurance.
Business expenses insurance can help pay fixed practice costs such as rent and staff wages if you cannot work for a period. It is separate from your personal income protection.
Insurers stopped issuing new agreed value policies in 2020. New policies are indemnity policies: your benefit is based on what you actually earned before you claim, not an amount agreed upfront. If you still hold an agreed value policy, think carefully before replacing it.
Most insurers no longer offer level premiums on new income protection. Cover is now mostly stepped, so premiums rise as you get older, which makes regular reviews more important than ever.
Inside or outside super
Where you hold your income protection changes who pays, how it is taxed and what features you can have. Here is a general comparison.
| Feature | Inside super | Outside super |
|---|---|---|
| Who pays the premium | Your super fund, from your super balance | You, or in some cases your business, from your own cash flow |
| Tax on premiums | No personal tax deduction; premiums come out of your retirement savings | Generally tax-deductible to you |
| Effect on cash flow | Little effect on your take-home pay | Premiums come out of your budget, partly offset by the tax deduction |
| Effect on retirement savings | Reduces your super balance, and that cost compounds over time | No direct effect on your super |
| Policy features | Some features and optional extras may not be available, and benefit periods may be shorter | Generally a wider choice of definitions, benefit periods and optional extras |
| How benefits are paid | Through the super fund trustee, who must release them under super law; taxed as income | Directly to you by the insurer; taxed as income |
| Who controls the policy | The super fund trustee owns the policy | You own and control the policy |
Some people hold part of their cover inside super and part outside, to balance cash flow with features.
Different insurers offer different products, definitions, features and premiums, and these change over time. Our financial adviser’s job is to understand you properly, including your work, income, family, goals and existing cover, and then research the market to recommend cover that is appropriate for you. The aim is simple: to help keep your goals achievable, and to protect you against the “but what if” moments that could otherwise derail them.
How it works
Book online
Bring your current policy schedules, and I’ll tell you plainly whether anything needs attention. In English or Mandarin, in Chatswood or online. Prefer to talk first? Call 1300 913 929 or 0405 913 913.
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Reviewed for accuracy
Panbo Ye, CFP®, FCPA, SMSF Specialist Adviser™ and registered tax agent; founder of Everglow.
Last reviewed:
Rules, rates and thresholds change. Check the source, or talk to us, before acting. This page is general information, not personal advice.
General information only. This page does not take into account your objectives, financial situation or needs. Before acting, consider whether it is appropriate for you and read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Different insurers offer different products, features and premiums, and not every product will suit you. Insurance cover is subject to the insurer’s acceptance and to the policy terms, conditions and exclusions, and premiums may increase over time. We do not charge a fee for insurance advice. The insurer pays us a commission, which we only accept with your written consent and which is disclosed in your Statement of Advice. If we complete our advice and you decide not to go ahead, we charge for our time at our hourly rates. Financial advice is provided by Everglow Wealth Pty Ltd, a Corporate Authorised Representative (No. 1254987) of PGW Financial Services Pty Ltd (AFSL 384713).
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