Osteopath Surgery Insurance | Income Protection
If you can’t work your surgery doesn’t work does it?
Protecting the income you generate in your practise is a key part of ensuring the continued success of your business and protecting your lifestyle. You need to consider the impact on your practise of you not being able to treat clients and also your own personal situation in the event that you can’t work as result of illness or accident.
Protecting your own income
Government incapacity benefit won’t even cover the basics let alone protect your lifestyle, and before the Government pay you anything they will want to know if you have any savings you can use first.
What kind of Income Protection should I consider?
There are many types of cover available and taking advice is crucial. Many people don’t find out they have the wrong cover until it comes time to claim by which time it is too late.
Short term Plans - Offer short term cover that will pay out for 1 or 2 years only. Even if you are off work for a long time these plans only pay out for a short period.
Long Term Plans - The benefit can be paid right up to the date you intend to retire, with annual inflation increases the potential benefit on these plans can run into hundreds of thousands of pounds of replacement income. These types of plans provide very comprehensive cover protecting you from a serious accident or illness that brings your career to a close sooner than you would like. This type of plan should be a high priority for anyone who relies on their income to pay the bills. These plans can also protect hard earned savings in the event of illness meaning that you don’t have to raid pension savings early if you are ill.
How is the cost calculated?
On long term plans that are designed to provide cover right through to retirement date you have a number of options:
Guaranteed Premiums - the premium will not be increased by the insurer; the only change to the premium would be if an annual inflation protecting option is included at the beginning.
Reviewable Premiums - The premium can increase if the insurer experiences a large number of claims with its clients. Often these premiums start lower than the guaranteed rates.
Age banded Premiums - These sorts of plans have a premium that starts low when you are young and as you get older the premium will increase.
Non age banded Premiums -These plans will have a higher starting premium than an age bended plan but the premium won’t increase as you get older. (It is important that both age banded and non-age banded plans are considered and we can identify for you the cost over the whole life of the plan so you can make an informed decision.)
How can my lifestyle impact on the cost?
If you do any dangerous activities or play certain types of contact sport an insurer may increase the cost to reflect the extra risk. Our experience of the market will identify those insurers that don’t impose this kind of extra cost, we can also help you to pick an insurer who will provide cover even if you have an existing medical problem, all that will happen is that this existing medical condition can be excluded.
Paying the premium
It will depend on whether you run your business as a sole trader/partnership or a limited company. A limited company structure means we can set up the cover in such a way that the cost of the premiums are tax relievable as a business expense. This can have dramatic savings in both tax and national insurance. It is worth noting that we can also use a similar structure for life assurance plans. This could mean that any life cover plan you have that you pay for personally should be reviewed to identify tax savings.