In recent years, we’ve seen a steady rise in enquiries from doctors and dentists about financial protection, particularly income protection. It’s hardly surprising. Economic uncertainty, rising living costs, workforce pressures, and ongoing NHS challenges have all prompted clinicians to take a closer look at how secure their income really is.
Despite this, misconceptions about income protection persist, and these myths prevent people from putting essential safeguards in place.
Let’s cut through the noise and look at why income protection remains one of the most important policies you can hold.
Back to basics: What is income protection?
Income protection provides you with a replacement income if you’re unable to work due to illness or injury. Payments continue until you recover and return to work, or, if you can’t return, until your chosen retirement age.
This is different from a critical illness policy, which pays a one‑off lump sum if you’re diagnosed with a serious condition. Both types of cover are tax‑free, but they serve very different purposes.
For locums in particular, it’s important to be clear: income protection does not cover gaps in work or lack of available sessions. It only applies when you’re medically unable to work.
Are all income protection policies the same?
Not even close.
The difference between a basic policy and a high‑quality, medically‑appropriate one can be significant. At its weakest, income protection can amount to little more than an expensive direct debit. At its strongest, it provides breathing space during the most difficult periods of your life, covering essential bills so you can focus on recovery and not financial stress.
Key options to consider
Income protection comes with a range of choices, including:
- Guaranteed vs. reviewable premiums
- Own‑occupation vs. any‑occupation definitions
- Short‑term (e.g., 2‑year) vs. full‑term benefits
- Index‑linked benefits
- Deferment periods
For doctors and dentists, these details matter enormously. Your work is highly specialised, and your policy needs to reflect that. The wrong definitions or structure may mean a claim may not pay out when you need it most.
Who actually needs income protection?
In simple terms, anyone who relies on their income.
That said, sick pay arrangements vary widely across healthcare roles:
- Hospital doctors may build up to 6 months full pay and 6 months half pay after 5 years’ service.
- Salaried GPs may receive similar arrangements.
- GP partners often have 12 months of drawings, minus locum costs.
- Locum GPs have no sick pay.
- Dentists typically have limited or no sick pay, depending on their contract and practice structure.
If your sick pay is limited, income protection becomes even more important. Even those with NHS sick pay should consider how they’ll cope once that support ends.
A good starting point is to calculate your fixed monthly costs and compare them to your savings. Many clinicians discovered during recent years how quickly savings can evaporate when income drops.
Common myths about income protection
“You only need it if you have children.” Everyone needs money to live. Children or not, if losing your income would cause financial strain, income protection matters.
“You only need it later in your career.” Illness or injury can strike at any age. Younger professionals often have fewer savings and more financial commitments, making protection even more important.
“It’s only worthwhile if you earn over £100,000.” Whether you earn £30,000 or £130,000, your bills don’t disappear if your income does. The principle is the same.
Can I get income protection at any age?
Most insurers allow new policies up to around age 59, with cover typically ending between ages 60 and 71, depending on the provider.
Starting earlier usually means lower premiums and fewer medical complications. The cost per £ of cover is stopped if you opt for guaranteed premiums, and that policy will also take no account of any decline in your health as you age, as it’s based on your health at the outset. Let’s face it, none of us are getting younger or improving our health over time.
Can I get income protection in today’s climate?
Yes, absolutely.
While underwriting questions have evolved in recent years and some applications may require medical evidence, insurers continue to offer income protection as normal. Medicals are routinely carried out at home or work, and many cases are accepted without one.
What if I have a pre-existing condition?
Insurers generally take one of three approaches:
- Offer standard cover
- Increase the premium
- Exclude a specific condition or body part
Some medical conditions make cover more challenging, but very few make it impossible. Specialist advice can make a significant difference to outcomes.
My income has dropped. Why should I spend money on protection now?
Periods of reduced income often highlight just how vulnerable we are without a financial safety net. Income protection typically costs a small percentage of your earnings, and you don’t need to insure the maximum amount immediately.
You can start with an affordable level of cover and increase it as your income grows.
Why not just rely on early pension access?
Early retirement from the NHS pension scheme comes with significant reductions, and you can’t access benefits before age 55. Ill‑health retirement exists, but it’s difficult to qualify for and depends on strict criteria.
Income protection helps bridge the gap, providing support when you need it, rather than when the pension rules allow.
What will insurers ask?
Expect straightforward questions about:
- Height and weight
- Lifestyle and smoking status
- Sports and activities
- Personal and family medical history
What income protection still matters
Financial planning often focuses on exciting goals, the dream home, retirement plans, and the adventures you hope to enjoy along the way. None of these are possible without the income that funds them.
A sudden illness or injury is stressful enough. Income protection removes the added fear of financial instability, giving you space to focus on recovery.
If you’ve dismissed income protection in the past, assumed you wouldn’t qualify, or haven’t reviewed an existing policy, particularly if your income, role or family circumstances have changed, now is the moment to check it remains fit for purpose.
Protection products vary in purpose and suitability. This article does not constitute financial advice. Always seek financial advice to ensure cover is appropriate to your needs.
Now, are you ready to take out an income protection policy? Let us know by adding a comment below.