Pulse Independent Insurance and Financial  Advisers is a trading name of -

R J Hurst & Partners Ltd, authorised and regulated by the Financial Services Authority

Registered in England (No: 492768) at 131.133 New London Road, Chelmsford, Essex. CM2 0QZ.
Directors:  G.M. BERNCASTEL | J.T. BUGDEN | R. MCEWEN | S.A. SMITH

Pulse

Pulse Independent Insurance & Financial Advisers

Specialist Independent Advisers to the Medical Profession

Income Replacement Insurance

 

If your are unfortunate enough to suffer from long term incapacity, this could have a potentially dramatic effect on your income.

 

During the first year of illness (sometimes less depending on your Practice Agreement) you would continue to receive your income from the Practice; however, in the event that you are unable to return to work at the end of the year, you would normally retire on the grounds of ill-health. At that point your income would cease.

 

As a member of the medical profession contributing to the NHS Superannuation Scheme, you would qualify for an Incapacity Pension. The calculation for this changed in April 2008 and is now on a two tiered arrangement.

 

 

 

Tier 1 - you would be assessed as being unable to do your own job, if you were suffering from a physical or mental infirmity that makes you permanently incapable of efficiently discharging the duties of your employment. Your Incapacity Pension would be the same as your accrued retirement pension.

Tier 2 - you would be assessed as being unable to do any regular employment. This means that your are suffering from a physical or mental infirmity that makes you permanently incapable of engaging in any regular employment. Your benefits would be based on your accrued pension, as in tier 1, but in addition you would receive an enhancement based on two-thirds of prospective service to normal retirement age (age 60 for pre-April 08 members and 65 for post April 08 members)  subject to a minimum 4 years enhancement.

You may also qualify for State Benefits, although if you are assessed as being able to carry out an occupation other than your own, which you may not wish to do, then it is likely that you will not receive this benefit.

 

Although you would receive your NHS Incapacity Pension, this will not be at the level of income that you are used to receiving and could leave you with a substantial shortfall.

 

An Income Replacement Policy - also known as Income Protection - can help to bridge the gap.

 

This policy will provide an income that will continue until such time as you are able to return to work. If you remain unable to do so, then payment will continue until you reach the expiry date of the policy or die, whichever is the first to occur.

Benefits are limited due to the payments being Tax Free, and the limit varies from Company to Company, although will be around 50%-55% of pre-disability Income. You must also bear in mind that any ongoing income will be taken into account at the point of claim and that this will include State Benefits and your Incapacity Pension

 

Some other points to bear in mind are :

 

• Indexation of benefits :

 

 

 

• Premiums :

 

 

Although you can opt for level benefits, choosing to include indexation will help to offset the effects of inflation. Premiums will also increase.

Guaranteed premiums will not change throughout the time you hold your policy, unless you have index linked benefits (as mentioned above)

Reviewable premiums will start out lower, but are reviewed regularly and are likely to increase over time with no guarantees as to by how much.  

• Definition of disability :

Own Occupation : Probably the most desirable as this states that benefit would be payable if you are unable to follow your own occupation.

Suited Occupation : Benefit payable if you are unable to follow any occupation to which you are suited by way of your training.

Any Occupation : Benefit payable if you are unable to follow any occupation.

If you wish to consider this Insurance further please proceed to quotes

 

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