Case Study: The Cost of Not Reviewing Your Insurance Cover

Insurance is one of the most important and most overlooked parts of a doctor’s financial plan. Many take out cover early in their careers and then leave it untouched for years. As income grows, debts change and families expand, the original cover can quickly become outdated.

This case study highlights how a routine insurance review for a non-GP specialist led to lower premiums and improved protection, simply by realigning cover with their current circumstances.

The Situation

Our client was a non-GP medical specialist in their early 40s. Like many doctors, they had arranged their personal insurance several years earlier, at a time when:

• Their income was significantly lower

• Their debt levels were different

• Their family circumstances had not yet changed

  
  

Since then, their career had progressed, their income had increased, and their financial responsibilities had grown. However, their insurance had not been reviewed in several years.

They were paying substantial premiums each year, but had no clear understanding of:

• Whether the sums insured were still appropriate

• If the structure of the policies remained suitable

• Whether the pricing was still competitive

What We Found

After reviewing the existing policies, several issues became clear:

1. Outdated cover amounts The original sums insured were no longer aligned with current debt levels or financial responsibilities.

   
   

2. Inefficient policy structure Some of the policies were not structured in the most cost-effective way given the client’s current income and goals.

   
   

3. Premiums that were no longer competitive The policies had not been market-tested for several years, despite changes in insurer pricing and product design.

The Review Process

Rather than simply replacing the cover, we conducted a full insurance review that focused on:

• Current income and earning capacity

• Outstanding debts and liabilities

• Financial dependents and lifestyle needs

• Long-term career trajectory

  
  

We then compared the existing policies against the current market, taking into account both price and policy quality.

The Outcome

Following the review and restructuring process:

• Total premiums reduced by approximately 40% (pro-rata)

• Sums insured increased to reflect current debt levels and family responsibilities

• Cover was reset to align with present-day circumstances

• The overall policy structure was simplified and made more efficient

  
  

In other words, the client ended up paying less each year while having more appropriate protection in place.

Why Specialist Advice Matters

Insurance for doctors is a highly specialised field. Policy definitions, occupation classes, loadings, and underwriting outcomes can vary significantly between insurers.

Nationally, there are fewer than 200 out of 15,500 advisers who specialise specifically in personal insurance advice. These advisers typically hold advanced experience and maintain strong relationships with insurers and underwriters.

BFD Financial Planning operates within this specialist space. This allows us to:

• Access reduced premium arrangements where available

• Negotiate the removal or reduction of medical loadings

• Structure cover appropriately for different medical specialties

• Work directly with senior underwriters across major insurers

  
  

These relationships and technical expertise can make a meaningful difference to both pricing and policy outcomes.

Why Regular Reviews Are Important

A doctor’s financial life rarely stands still. Over the course of a few years, changes may include:

• Increased income

• Larger mortgages or business debt

• Marriage or children

• Practice ownership or partnership

  
  

Without regular reviews, insurance can become misaligned, either leaving gaps in protection or resulting in unnecessarily high premiums.

Key Takeaway

Insurance isn’t a set-and-forget arrangement. As careers and personal circumstances evolve, so too should your cover. If it’s been several years since your last insurance review, your policies may no longer reflect your income, debts, or family responsibilities.

A specialist review can help ensure your cover is aligned with your current situation — and that you’re not paying more than necessary for protection.

BFD Financial Planning is a specialist firm dedicated exclusively to Medical Professionals. If you would like to discuss your personal insurances for the year ahead and beyond, you can book a meeting at a time that suits you (including outside standard hours) via our online calendar.

Book a meeting. https://calendly.com/thomasrutter-bfdfp

Contact us today. info@bfdfp.com

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General Advice Disclaimer

The information contained on this website and in this blog-post is general in nature and does not take into account your personal situation or circumstance. It is recommended that you consider and use the information provided responsibly, and where appropriate, seek professional advice from a financial adviser.

Although, every effort has been made to verify the accuracy and correctness of information, BFD Financial Planning, together with our consultants, officers, agents, and employees, disclaim all liability for any loss or damage suffered by any persons directly or indirectly relying on this information.