Doctors and other healthcare providers are just as much at risk for disablement injuries or illnesses. Due to the high cost of medical school and the financial burden assessed by the repayment of student loans, income protection for doctors is not an option. Despite the offering of insurance coverage to protect incomes within New Zealand, only 11% of the population has taken the initiative to purchase income protection insurance coverage.

Why Income Protection is Needed?

Income is an asset that is commonly measured by year. The reality is that income should be looked at over the span of a working lifetime. That range is typically from age 18 to age 65. If we consider that time frame under a financial lens, then we see that, over a working lifetime, our income becomes our greatest asset. This is exactly why income should be protected by insurance. A doctor who likely will make $200,000 annually can expect to make from age 30 until age 65 about $7 Million Dollars in the 35 years they work before they hit retirement age. That $7 Million Dollars should be protected against loss due to injury or illness that leave the doctor disabled.

The Benefits of Purchasing A Policy Early

The benefits of purchasing income protection early are important considerations especially when those considerations also include the limitations of both income protection insurance and ACC benefits. We talk about limitations in coverage because of how ACC and Income protection Insurance limit coverage of pre-existing conditions.  Beginning coverage earlier in ones life helps to eliminate limitations of coverage because of pre-existing conditions. This is true because there is less chance for a pre-existing condition to occur, when we are younger. As we age, our bodies change, and health issues begin to emerge. Having income protection coverage in place, prior to our bodies developing medical issues that may either be considered degenerative or a considered pre-existing condition is beneficial.

Some Differences Between ACC and Income Protection Insurance

ACC is even more restrictive because ACC considers your level of health at the time of your disability to be the benchmark for release from benefits.  For Doctors, who are subject to all kinds of exposure risks, and potential injuries that can cause disability the benefits of income protection insurance may in some cases outweigh the cost because the potential for lost income is not only high in terms of dollars but high in terms of risk. Income protection insurance is designed to protect what is likely to be a doctors largest asset, their earnings over their working lifetime. The above example should provide the motivation and the example of why income protection is something to consider.

New Zealand Statistics

Statistically, only 11% of the nation has thought about income protection beyond what is offered by the government through the ACC program. Those 11% are ahead of the game because they have stopped relying upon the government to provide for them.  They  have taken it upon themselves to plan for their own financial well being. For doctors, this is just as important because to maintain that lifestyle is difficult without that level of income. Income protection is one type of insurance policy that professionals do not readily take advantage of.

Many people buy health insurance and then leave their financial protection up to government programs or simply go without protection. Without an income how do we continue to recover from injury or illness? Income protection is insurance the provides a monthly payment when people are unable to work due to a qualifying disability. 89% of working individuals leave their financial well begin to chance while 11% of individuals take the preemptive opportunity and plan for their financial future by protecting their income with income protection insurance.


This article and all articles on this site are not to be taken as professional insurance advice, for such advice please speak to a registered insurance broker. We can connect you with a broker by using the form on this site.)