Income Protection Tips for Medical Professionals
- Yves Schoof
- Jul 13
- 2 min read
Updated: Jul 15
If it’s been more than two years since you last reviewed your income protection policy, it’s time for a closer look.
At Affluence Private Wealth, 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.
Over the past several years, many policies have seen premium increases of 15–25%, leaving some professionals unknowingly paying more than necessary.
But there’s a more pressing concern that uniquely affects specialists: after two years on claim, some policies stop assessing you based on your occupation and instead apply a generic definition like “any occupation.” For professionals whose fine-tuned skills and experience drive their income, this shift can undermine your financial security at the most critical moment.
What’s changed in recent years? Reforms 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 the time of claim, 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.
With your career and lifestyle on the line, regularly reviewing your policy isn’t just smart; it’s essential to ensure your cover continues to align with your needs, protect your livelihood, and deliver value.
If you’re unsure about your policy or want expert advice, we’re here to help. Book an obligation-free consultation to make sure your cover aligns with your needs and skills.
