INCOME PROTECTIONS PLANS
INCOME PROTECTION FOR GENERAL PRACTITIONERS
Income Protection cover provides you with a replacement income in the event that you become unable to work due to accident or illness. This is particularly relevant for GPs who are for the most part self-employed, are subject to locum costs and have little safety net.
Your benefit will last for as long as you are unwell, right through to retirement age.
WHY OPT FOR COVER?
THE SIGNIFICANT LOCUM COST GAP
"There is a significant gap between the HSE Sick Leave payment & the cost of a Locum to replace you"
HSE SICK LEAVE
To clarify, a GP with a medical card list of over 700 is entitled to sick pay of €197.18 per day for the first week and €1,380.65 per week from week 2 to week 13. At the end of week 13 this will fall to €690.33 per week for a further three months. For GPs with a GMS panel of 100-699, the payment is based on the income derived from their GMS list. There is no cover for those with a list of less than 100.*
At the present time a locum would cost c€500 per day, meaning that if you needed to take a week off work due to illness per week it would cost you €2,500 for the week.
TO GPs PER WEEK
(First 3 Months)
LOCUM COST €2500 MINUS SICK PAY €1380
After 3 months the situation becomes a little more austere. The sick pay reduces to €690 per week meaning the calculation would be as follows:
TO GPs PER WEEK
(After 3 Months)
LOCUM COST €2500 MINUS SICK PAY €690
HOW INCOME PROTECTION CLOSES THE GAP
In the above example our GP is significantly out of pocket. We can put an income protection plan in place to kick in after 4 weeks so that the reduction in sick pay is made up for the GP.
DIRECT PAYMENT TO GPs
Income Protection benefits can be paid directly into into a GP's personal account if they wish. The practice can take care of the additional cost of the Locum while the GP can still be paid themselves by their income protection and maintain their own lifestyle. If it is a case that the GP cannot return to work at any point, his/her income protection payments will continue until age 65.
*The HSE may increase the sick leave payment to six months full pay / six months half upon review of a critical illness.
1 IN 7 GP'S CLAIMED ON THEIR INCOME PROTECTION POLICY IN 2018
Just over 1 in 7 Medical Professionals including GPs, Consultants and Pharmacists claimed on their income protection policy in 2018 compared to 1 in 8 the previous year, marking a significant increase.
Within the GP/Consultant group, three ongoing claimants were paid €350,000 and will continue to be paid for as long as they are unable to return to work full time.
Dr Vladka Vilimkova
Dr Vladka was diagnosed with cancer in late 2012 and has undergone four extensive surgeries since. Unfortunately the treatments have resulted in a significant loss of arm/shoulder mobility, rendering her unable to work for the foreseeable future. Vladka’s Income Protection policy has provided her with a weekly income since her first diagnosis and will continue to do so as long as she is unable to work.
Dr Emma O'Hara
When I applied for income protection in 2013, I was in perfect health. Then suddenly I found myself laid up with broken bones from a serious car accident. I had barely paid my first premium, but Omega honoured their word. I never had to worry about payment, and the claim form was simple and quick. It was one major headache I didn’t have to deal with. I would recommend every professional to seek income protection, because you never know what lies ahead.
I like to keep fit and healthy and it is rare that I am unable to work due to illness. However in recent months I have claimed on two occasions for 2 days of lost income as a self employed business owner. The claims process was swift, DG kept me informed and the claim was paid within 7-10 days. Overall I have found the support provided by DG and Omega Financial to be excellent and would recommend highly.
As a general dental practitioner who owns a mixed private/GMS practice I thought it was essential to have Day One income protection against a rainy day. Practices have so many hidden costs that a considerable down time would put real strain on the every day running of the practice so I felt Day One protection was essential. Covid-19 was one of those down times. Overnight the practice shut its doors and all sources of income were lost.