How to best protect a fluctuating income
Many specialist and practice owners have fluctuating incomes for various reasons. Income protection is an area where there are many different solutions available in the market place. At Medical Professionals Insurance we make sure that we have a discussion around the different types of policies and how they will be paid out at claim time. In most cases it is important to consider completing the financial underwriting (pre-approving the sum insured) at application time rather than at claim time. It is necessary to also consider potential offsets and/or unearned income when choosing your income protection.
Protecting your business income vs protecting your personal income
In the event you became unable to work at your practice or clinic it's important to make sure the gross profit is maintained whilst you are on leave. Many practitioners will need to find a replacement in the form of a locum. People with the traditional locum cover will have money available whilst disabled to pay a locum however sometimes it's difficult to find a locum due to location or nature or the specialty of the work. Another disadvantage is that the locum cover is often paid directly to the locum however there may still be a reduction in gross profit due you not being there. By protecting the portion of the gross profit of the business for which you are responsible for, the business can survive whilst you are unable to work. When you return to work the business is in a better position. Furthermore if you are unable to return to work in the long term the business can be sold. When this occurs a personal income protection will start and continue to pay either to age 65 or age 70.
Changing locations
When you are a medical professional it is unlikely you will be working at the same location for the duration of your career. For this reason we make sure that we deal with companies that offer world wide cover. Many of our clients move around New Zealand or overseas during their career therefore it's very important that the risk management plan covers them as they move. We are able to keep in touch by phone or Skype which enables us to stay in touch with our clients when face to face meetings are no longer convenient.
