Essential Insurance Advice Tips for Doctors

GENERAL, BUSINESS, PERSONAL INSURANCE & INCOME PROTECTION

Insurance is a risk transfer mechanism, so you have peace of mind that your family, assets, business and income are all protected.

Remember – No Insurance or Under Insurance = Self Insurance

It is your defence against setbacks. It’s your financial foundation.

There are many types of Insurance which cover a range of risks, depending on what you are insuring:

• General Insurance – House, Car, Boat, Travel, Landlords
• Business Insurance - Can include your Equipment, Glass, Loss of Income and Public Liability
• Management Liability, Professional Indemnity, Practice Indemnity, Cyber
• Personal Insurance – Income Replacement, Life Insurance, Total & Permanent Disablement Insurance, Trauma (Critical Illness) Insurance.

Insurers offer policies with different features so make sure you choose a policy which is right for you.

Insurance does not cover everything. Know the exclusions.

Engage the services of a trusted and professionally qualified Financial Adviser with the skills and expertise to assist with tailoring your Risk Management Strategy.

All professionally qualified Advisers of AMA Insurance and AMA Financial Services are not remunerated through commission systems, they are salaried employees.  This structure ensures we always act in the best interests of our clients.

SOME THINGS YOU MAY NOT KNOW ABOUT INSURANCE

1. Most Insurance policies include an excess which you must pay out of your own pocket or may impose a waiting period before you are able to claim.
2. You are legally required to cover your employees and to protect them in the event of sickness or injury whilst at work. Depending on which State you are based in, the cover is available either through your State Government or via an Insurance Broker such as ourselves.
3. Business Interruption can be added to your Business Insurance to cover such events as fire, water damage and the resulting loss of income.
4. Income Protection does not cover any loss of income from such events occurring in your business. Income Protection replaces your income in the event of an injury or illness.
5. Only Cyber Crime Insurance protects businesses and individual users from internet-based risks, such as reinstating your IT system, loss of income, ransoms and fines. Cyber risk is a major growing threat to businesses, not only from within your own IT system but from your customers and suppliers too. Internally, all it takes is for an employee to click on an email attachment and your system could be compromised.
6. Income Protection cover provides a regular benefit if you are temporarily disabled and unable to work due to injury or illness. Most policies will generally allow you to insure up to 75% of your regular pre-tax earnings, which may include base salary, superannuation contributions and certain other benefits and allowances. This may be reduced for high income earners.
7. Income Protection policy premiums are generally tax-deductible, however any benefit payments received are considered assessable for income tax.
8. Needlestick and medical hazards benefit - some policies will provide a lump sum payment in the event of occupationally acquired HIV, Hep B or C.
9. Life Insurance provides a lump sum benefit if the insured person dies. The benefit is paid to the owner of the policy, the nominated beneficiary, or the insured’s estate. Many life insurance policies also provide a lump sum benefit in the event of the insured person becoming terminally ill. Any payment made for terminal illness reduces the death benefit payable.
10. Total and Permanent Disablement (TPD) insurance cover provides a lump sum benefit if the insured person becomes totally and permanently disabled. Typically, the benefit will be paid once the insured has been assessed as being unlikely to ever return to work to the satisfaction of the insurer. TPD insurance is available with a number of different disability definitions (depending on the insurer and the cover sought). The main ones are Own Occupation, Any Occupation and Home Duties. The ‘Own Occupation’ definition is generally the preferred option for doctors, as it is occupation specific and therefore maximises the chances of being eligible for a TPD benefit.
11. Trauma insurance provides a lump sum benefit upon the insured being diagnosed with one of the defined major or ‘critical’ medical conditions listed in the insurance policy. The conditions covered vary slightly between providers but generally cover such things as cancer, heart attack, stroke, paraplegia, major organ transplant, etc.
12. Insurance can help you pay off debt. Would you rather lose your home or your mortgage? What if something you have bought with a loan is damaged or destroyed - do you still want to be responsible for the loan?
13. You have a duty to disclose any information that may affect the Insurance cover. Under the Duty of Disclosure Insurance Contracts Act 1984 you are legally required to disclose to the Insurer any matter that you know, or could reasonably be expected to know, is relevant to the Insurer’s decision whether to accept the risk of Insurance. For example: Failure to disclose previous claims history.

Written and produced by AMA Financial Services

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AMA Financial Services

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