This does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Dental and Medical Financial Services Limited is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.
It should be evident how important a wealth protection plan is for doctors. It should also be clear that there is no one-size-fits-all plan that will work for everyone. Wealth protection needs to be customised to the individual because everyone’s situation will be different. Someone just starting out in their career won’t need the same level of protection as someone more advanced with a home, family, etc. But no matter how much wealth you’re protecting, having coverage in the event that something happens to your income will make a world of difference.
Do you know how you will provide an income in the event of an illness or injury?
If COVID has taught us anything, it’s that having a plan to deal with the unexpected is not only smart, but it’s essential. Anyone can suffer an illness, injury, or die unexpectedly, so having a protection plan as well as an updated estate plan just makes sense.
When creating a wealth protection plan, there are a few things to consider.
What medical school didn’t teach us about money
“What medical school didn’t teach us about money” will give doctors a step by step plan to transforming your financial future. Enter your details to download your copy now
Protection against illness, injury, or death
Wealth protection needs to be customised for each individual.
The best way to ensure you have all the coverage you need is to work with a professional, who can advise the best providers and products that are right for you and that will give you peace of mind should anything happen.
Here is an overview of the three main types of policies that should be included in your plan:
- Critical Illness – If you are diagnosed with a condition covered by your policy, your provider will pay out a tax-free lump sum so you can allocate however much you need to cover expenses while you recover.
- Income Protection – Similar to critical illness, but a wider variety of conditions are covered and payouts are made regularly, rather than in one lump sum.
- Life Insurance – unique in terms of protection policies in that it will only pay out upon death of the policyholder. This type of insurance policy pays out a lump sum to provide your family with money to cover any expenses they may have.
Estate planning
Estate plans were once seen as something only the ultra-wealthy needed to have, but that’s no longer the case. Thanks to rising house prices and the Inheritance Tax (IHT) nil-rate band freeze, they are becoming a necessity for more and more people. Because with estate planning, you can minimise potential tax burdens.
On top of that, the best way to ensure your wishes are carried out after you die is to create a will. With a will, you can dictate how your wealth and assets will be distributed, so it’s important to prepare for the future with an estate plan and will.
Work with a professional for the best outcomes
The best way to ensure that your hard-earned wealth is protected no matter what happens to you is to have a robust wealth protection plan. And the best way to build a protection plan is to work with an independent financial adviser.
The experts at Dental & Medical Financial Services can help you find the right coverage that will help you feel secure that your family will be provided for if for any reason you lose your income. Get in touch to get started building a plan or for a thorough review of your existing wealth protection plan.
Join 30,000 doctors and receive free, exclusive, financial CPD for doctors in your inbox.
Medics’ Money is run by doctors and finance experts, for doctors. Our free financial CPD gives you all the knowledge you need to take control of your finances.
