Life Insurance for Doctors, Physicians, and Surgeons

Protecting the professionals who care for our health and wellbeing.

Doctors know that life can take drastic and difficult turns when least expected. That’s why it’s important to have a life insurance policy that helps protect you and your loved ones against life’s uncertainties.

A typical life insurance policy guarantees your estate or nominated beneficiaries a lump sum if you die or become terminally ill. Doctors should consider other types of life insurance cover as well which can account for the unique liabilities that medical professionals have to face. For example:

  • Workplace risks (such as needlestick injuries)
  • Psychological difficulties
  • Business expenses for private practices

FAQs About Life Insurance for Doctors

Why do doctors need life insurance?

 

Becoming a medical professional takes years of rigorous study and training, not to mention hundreds of thousands of dollars in tuition costs. It therefore makes sense for doctors to protect the income source they’ve worked so hard to attain – income protection cover, for example, pays a monthly benefit if you are unable to work due to illness or injury.

Many doctors and specialists also move into private practice later in their careers. This makes for an extra degree of potential exposure to financial liabilities, because the running costs of the practice continue even if the doctor suffers an injury, accident, or illness that prevents them from working. Quality life insurance for doctors can include business expenses cover which helps to cover these running costs.

Reasons why doctors could benefit from taking out the right life insurance covers will vary around different personal and financial circumstances, including the following:

  • Repaying an outstanding mortgage
  • The payment of an inheritance tax bill when you die
  • The repayment of personal loans, car loans and other debt
  • Providing your family with a lump sum to maintain their lifestyle should you die.

What can life insurance cover for doctors?

 

For physicians, life insurance products can cover the following:

Blood borne diseases

This option pays a lump sum to medical professionals who are accidentally infected by a blood borne disease at work. It’s particularly important for doctors, who have a greater risk of needlestick injuries or unprotected blood contact than most other professions.

 

Business expenses

Business expenses insurance pays you, as a business owner, an ongoing monthly amount to cover expenses such as rent, equipment hire, staff wages and other overheads if you are not able to do all or part of your occupation due to illness or injury. Doctors running a private practice can also use it to hire a locum in their place while they recuperate.

 

Total and Permanent Disability (TPD)

TPD cover provides a lump sum payment if you become totally and permanently disabled and can’t return to work. These benefits are often used to eliminate debt and fund long-term medical expenses and the costs of ongoing care.

The majority of TPD payouts are for musculoskeletal issues, physical accidents, and mental health conditions. The latter is particularly important for doctors, who often work in high-stress environments where depression and anxiety are not uncommon.

 

Income Protection

Income Protection Select pays an ongoing monthly amount to help replace your income if you are unable to work due to illness or injury, so you can focus on recovering without stressing about meeting your regular living expenses.

 

Trauma Cover

Trauma cover pays a one-off lump sum if you suffer a serious listed medical condition such as cancer or heart attack*. It’s paid once the condition is diagnosed, and you can spend the money on whatever you like – medical expenses, debts, or even the holiday of a lifetime post-recovery.

*These conditions are known as Cancer – excluding specified early-stage cancers and Heart attack (myocardial infarction) – with evidence of heart muscle damage – see the PDS for definitions of the listed medical conditions covered by our trauma insurance.

 

Life Cover

Life Cover pays a lump sum to your estate or your nominated beneficiary if you die or become terminally ill. It, therefore, helps ensure your partner or other dependents can clear debts – such as a home loan – and have financial security.

Is being a doctor a high-risk profession?

 

Being a doctor is not classed as a high-risk profession. That said, it does come with significant risks that makes considering the right life insurance products a wise choice.  Exposure to toxic substances, infectious diseases, and workplace accidents are all hazards of the medical profession, as well as mental illness brought on by high stress work environments.

In particular, doctors suffer disproportionately from depression when compared to other professionals. The National Mental Health Survey of Doctors and Medical Students found that 21% of doctors have been diagnosed with or treated for the condition. This is especially true for interns and newly qualified doctors who often work long hours on minimal sleep in stressful settings, such as the ER.

In some cases, mental illnesses of this type can prove just as debilitating as a physical condition. This is where Total or Permanent Disability (TPD) cover can prove important for physicians.

What are the benefits of having life insurance as a doctor?

Successful doctors tend to have sophisticated financial lives with many having significant financial liabilities. Although everyone’s financial circumstances differ, these liabilities often include mortgages, lifestyle debts, business expenses (e.g. for a private practice), and long term financial obligations such as school fees.

Should illness or injury strike and you are unable to work, the right life insurance can ensure these ongoing expenses continue to be covered. This helps with financial peace of mind when it’s needed most, and extra money for medical treatment – ultimately guaranteeing a much better chance of swift recovery.

How can PPS Mutual help?

 

When you join PPS Mutual, as a professional you get exclusive access to a unique and tailor-made portfolio of insurance benefits as part of our Professionals Choice product – each one created with the specific protection needs of Australian professionals in mind, including doctors.

Profit-Share

Members of PPS Mutual will be entitled to a share in the profits of the Professionals Choice product. PPS Mutual Professionals Choice is the only product to offer this feature in the Australian Insurance market.

Indexation for Professionals

Being exclusively for professionals we are able to offer the option of having benefits increase in line with your salary, based on increases in our Professional Earnings Index or inflation, whichever is greater.

Professional Events

You can also increase your cover without having to provide further medical evidence when certain career events occur such as becoming a partner or starting in private practice

Flexible Premium Structure

A flexible premium structure provides for both a stepped and level premium structure for the one insurance type, allowing you to tailor your cover to benefit from the advantages of both premium structures.

True Level Premium

Premiums for any increased cover, from the application of the Indexation for the Professionals Benefit, is based on your age at the date of commencement of your cover and not your age at the time the indexation is applied.

Change of Ownership

The plan ownership may be transferred at any time with no underwriting.