Income Protection Insurance for NHS Professionals
What is Income Protection Insurance for NHS Professionals?
Ill health or accidents can happen to anyone and medical professionals are no exception. If you work in the medical sector, you’re likely to be more aware than most of the catastrophic impact that this can have on people’s lives.
Income protection insurance for NHS professionals provides a replacement income to medical staff if illness, accident or injury prevents them from working. To be eligible for this benefit, you need to work in a role covered by NHS sick pay. You should also be registered (or provisionally registered) with the General Medical Council or the General Dental Council and be licensed to practise in the UK.
Why do NHS Professionals need Income Protection Insurance?
During your first five years of working for the NHS, your sick pay entitlement is subject to several changes. It increases gradually for the first five years until you reach the maximum entitlement (six months’ full pay, followed by six months’ half pay). If you leave your position for 12 months or more, you’ll need to build up your entitlement from scratch on your return. Due to the complexity of NHS sick pay arrangements, it can be difficult to know what deferral period (how long you’re off work for before payments start) to choose for an income protection policy.
However, with policies designed specifically for NHS professionals – featuring an NHS Sick Pay Guarantee – you can opt for a 12-month waiting period and receive insurance payouts in advance of this according to how long you’ve been working for the NHS. The table below describes this in more detail.
NHS Sick Pay Guarantee
|
LENGTH OF NHS SERVICE |
NHS SICK PAY ENTITLEMENT |
50% SICK PAY GUARANTEE PAID AFTER |
100% SICK PAY GUARANTEE PAID AFTER |
|---|---|---|---|
|
Up to 4 months |
1 month |
n/a |
1 month |
|
Up to 1 year |
1 month’s full pay and 2 months’ half pay |
1 months |
3 months |
|
Over 1 year and up to 2 years |
2 months’ full pay and 2 months’ half pay |
2 months |
4 months |
|
Over 2 years and up to 3 years |
4 months’ full pay and 4 months’ half pay |
4 months |
8 months |
|
Over 3 years and up to 5 years |
5 months’ full pay and 5 months’ half pay |
5 months |
10 months |
|
5 years and over |
6 months’ full pay and 6 months’ half pay |
6 months |
12 months |
Here is an example of how the NHS Sick Pay Guarantee could work
Sam has worked as an NHS doctor for three years and earns £60,000 per year. He selects a 12-month waiting period and the full 60% of pre-tax income. This translates to £36,000 or £3,000 per month as his income protection benefit.
In accordance with his NHS sick pay entitlement, he receives five months’ full pay initially. He then receives five months’ half pay as well as 50% of his income protection benefit, or £1,500 per month. After ten months, Sam’s NHS sick pay stops. He then receives 100% of his income protection benefit, or £3,000 tax-free per month.
Additional benefits of Income Protection Insurance for NHS Professionals
You can also choose a policy with sabbatical break cover that allows you to take a break from your role. If you’re required to work abroad, overseas cover will allow claims and payouts under your policy (subject to terms and conditions).
A further benefit of this insurance for NHS professionals is that there's no HIV/AIDS exclusion should you be exposed to a needle-stick injury in the workplace.
How does Income Protection Insurance work for NHS Professionals?
If you're unable to work due to accident or illness, you’ll receive a tax-free monthly amount to cover a proportion of your normal income. The maximum percentage of your pre-tax salary you can select is 60%.
You'll also need to specify your deferral period when you take out your policy. Your monthly benefit will continue until you recover, or until your policy's end date (whichever comes first).
Why do NHS Professionals choose Income Protector to arrange their Income Protection Insurance?
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