Life Insurance for Medical Workers

As a medical worker, you get exposed to many risks that can be detrimental to your health, safety, and well-being. Needlestick and sharps injuries (NSIs) and other work-related injuries and stress are quite common in the medical care environment. Read more about why we think Life Insurance for Medical Workers is not just a wise choice but a necessary one, especially in this time of COVID-19 and especially if your family relies heavily on your income.

Life insurance is like a blanket of security that protects not just you but your family as well. It’s an assurance that your loved ones will be able to manage financially should anything serious happen to you.

Life Insurance for Medical Workers

Life insurance is a broad term that entails many facets of coverage. In a nutshell, life insurance is established to help the surviving family members cope financially in case the policyholder passes away. Many life insurance companies offer various amounts of coverage; it’s up to you to pick one that will suit your financial needs.

• Life (or term life) Insurance

This insurance is designed to provide your family with a lump-sum payment in the event you die. It may also provide an early payment if you acquired a terminal illness.

• Total and Permanent Disability Insurance

Often referred to as TPD, this insurance may be purchased as an extended cover or add-on to a life insurance policy. It covers against the likelihood of not being able to work again as a result of an injury or illness. TPD insurance may either support you if you are no longer capable of working in your specific job or any other job within your qualifications.

• Income Protection Insurance

This insurance provides a monthly payment if you are unable to earn an income due to a serious injury or illness. Also referred to as salary continuance, the monetary benefit is given for a set period only. Eligibility for monthly payment comes after a waiting period of 30-90 days. Depending on the coverage type, policyholders usually receive a percentage (up to 80%) of their standard income.

• Critical Illness or Trauma Insurance

This insurance provides cover for a severe injury or a particular medical issue. The benefits will depend on the severity of specific illnesses. Trauma or critical illness insurance can be purchased as an add-on to term life insurance policy or as a separate policy.

Ways to Get Life Insurance

There are different ways to get life insurance depending on your unique situation:

1. Through Super

Life insurance is commonly included in personal superannuation insurance. It is even sometimes bundled with TPD and Income Protection, too. Premiums are cheaper inside super, but the cover won’t be as comprehensive as when you get a standalone policy.

2. Through an Insurer

This will entail comparing and interpreting different policies from different insurers. However, this option allows you to get hold of a policy that’s tailored to your needs and budget.

3. Through an Adviser

This option is the most convenient way of getting the best life insurance for you, but it may also be costly. A financial adviser will evaluate your circumstances, assess your options, and get you a policy that best matches your conditions.

COVID-19 and Exclusions

As a medical professional, you are still eligible to get life insurance covering COVID-19. Being at risk of exposure to the coronavirus can't be used as a ground to decline life insurance coverage, as confirmed by the Australian Competition and Consumer Commission (ACCC). In addition, insurers cannot also use your increased risk to the virus as a reason to charge higher premiums or apply risk exclusions.

However, there are exclusions you must be mindful of:

1. Some insurers may not pay benefits if you are unable to work because of stress or mental illness. Other insurers also extended this exclusion to self-inflicted harm and suicide.
2. Medical workers who acquired their insurance between March 11 and April 6 this year should ask their insurers regarding any exclusion.
3. Some insurers have minimum requirements as to the type of job and its security. As a baseline, it must be a permanent job with at least 20 hours of work in a week.

As a medical worker who is at higher risk of contracting life-altering illnesses or injuries, life insurance is an essential investment. Compare your options now to get the best life insurance policy that will fit your unique situation.

This is intended as a helpful guide in navigating some complex financial decisions and in no way should be treated as personal or general advice about the suitability of a product or service. We haven’t been able to take into consideration your specific details or situation and these decisions can be exactly that: complex. We recommend that you consult licensed financial adviser to help navigate any terms and conditions and help clarify any specific product disclosures, should you choose to proceed with life insurance.