Income Protection Insights for Healthcare Professionals
- Yves Schoof
- 4 days ago
- 1 min read
After years of helping doctors and dentists through real claims, here’s the blunt truth: the wording in your income protection policy matters more than the logo on the front.
Two policies with the same premium can behave very differently at claim time. Get the definitions right and you protect your specialty, your income and your lifestyle. Get them wrong and you could be forced into “any job” after two years on claim.
What’s changed in recent yearsReforms across the industry have reshaped new income protection (IP) policies.
Key shifts you should know:
Indemnity only for new policies: “Agreed value” is no longer available on new cover. Your benefit is now based on your income at claim time, so a drop in earnings can reduce your payout.
Lower replacement ratios: Most new policies pay up to around 70% of pre-claim earnings (sometimes a higher rate for the first six months). Read the fine print on how “pre‑disability income” is calculated.
Tighter contract terms and definitions: Many newer policies have stricter ongoing disability tests, built‑in controls on long claims and more frequent policy term resets.
Own-occupation erosion: Some policies shift from “own occupation” to an “any occupation” or “suited occupation” test after 24 months on claim. That’s a problem for specialists whose surgical or procedural skills drive their income.
Bottom line
I’m happy to talk it through and coordinate with your accountant. Reach out with any questions about super or SMSFs.
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