Medical graduates income protection
Select life insurance companies in Australia have introduced guaranteed agreed value income protection' for medical graduates and dental graduates. What this means is that cover is based on an annual salary of $100,000, even though a graduates actual income may be less.
The income of medical and dental graduates generally increases each year. So once their income protection policy is underwritten, these graduates can receive a higher level of cover with guaranteed agreed value terms. These policies apply to the following registered, full-time, degree qualified medical occupations:
- Medical Practitioner with unrestricted registration
- Dentist or Dental Surgeon
Guaranteed agreed value income protection insurance
Hayley, aged 26, is a new medical graduate and for the past eight months she has been working at the Prince Alfred Hospital in Melbourne. Hayley is earning a first year medical graduate's salary of $60,000 per annum and has applied for the new guaranteed agreed value income protection insurance policy for medical and dental graduates.
With the guaranteed agreed value available for medical graduates, Hayley could apply for cover based on a salary of up to $100,000 due to the nature of her profession and her future earning potential. Hayley's policy could have a monthly benefit of up to $6,250, rather than a monthly benefit of $3,750 (based on her current salary of $60,000).
She will not be required to provide any financial evidence at underwriting, nor will she be required to provide financials in the event that she makes a Total Disability claim. However, if she makes a claim for a Partial Disability Benefit, financial evidence of her income at the time of claim will be required to determine the amount of the benefit payable.
Hayley is, of course, hoping that her salary increases each year with the extensive experience she will receive working at a large public hospital. She is also considering undertaking further medical studies to specialise in paediatric care.
More income protection insurance for graduates
Guaranteed agreed value income protection helps medical graduates early in their careers. It now provides more coverage for newly graduated medical professionals (doctors and dentists).
To explore your options, speak to an xLife adviser today. We compare income protection insurance Australia wide, so contact us to insure your income today!
Source: CommInsure 2010
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August 2010
