Protecting Your Income: Why Personal Insurance Is a Non-Negotiable for Doctors

Your ability to earn an income is your most valuable financial asset. Unlike investments or property, it cannot be diversified or easily replaced. For doctors, whose income is closely tied to their personal capacity to work, protecting this asset is essential.

Yet many medical professionals remain underinsured or incorrectly insured.

The Risks Doctors Face

Despite good health, doctors are not immune to:

• Illness or injury

• Mental health challenges and burnout

• Long recovery periods

• Permanent disability

  
  

Any of these can interrupt income suddenly, often with little warning.

Why Default Insurance Falls Short

Many doctors rely on insurance held through superannuation. While convenient, these policies often:

• Provide insufficient benefit levels

• Use restrictive definitions of disability

• Fail to reflect private or variable income

• Do not scale as income increases

  
  

For high-earning professionals, these gaps can be financially devastating.

Core Insurance Every Doctor Should Consider

A comprehensive strategy typically includes:

• Income protection to replace ongoing earnings if disabled and unable to work

• Total and permanent disability (TPD) cover for long-term incapacity

• Life insurance to protect dependants and debt obligations

• Trauma Insurance to cover medical expenses should you suffer a Trauma event

  
  

Each policy should be tailored to your individual circumstances and objectives.

The Cost of Being Underinsured

Underinsurance can force doctors to:

• Sell assets prematurely

• Deplete retirement savings

• Rely on family support

• Delay recovery due to financial pressure

  
  

The cost of inadequate cover is often far greater than the premium savings.

Reviewing Insurance as Your Career Evolves

Insurance needs change as income grows, practices are acquired, or work patterns shift. Regular reviews ensure coverage remains relevant and effective.

Key Takeaway

Insurance isn’t about expecting the worst, it’s about ensuring financial stability if the unexpected happens. For doctors, it’s professional risk management, not optional protection.

If you have questions about your Personal Insurance requirements or would like to review your existing cover, please reach out to BFD Financial Planning today for specialist guidance and support. Your financial future deserves careful consideration, and we're here to help you every step of the way.

Contact us today. info@bfdfp.com

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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.