By Matthew Homewood
Most of us don’t think twice about insurance because it has become a normal part of adult life. We insure our cars, our homes and contents, phones, pets and even our holidays, often without much debate. That’s because we recognise that these things are valuable and that unexpected events can and do happen.
Yet there is one thing we rely on more than any of these and it is often the one we fail to protect properly: our ability to earn an income.
Your biggest asset isn’t your car or your house
For most people, their biggest asset isn’t something they can touch or see, but rather their capacity to work and generate an income over time. As a doctor, this is particularly true.
You have invested years of study, training and personal sacrifice to reach this point in your career and your future earning potential reflects that enormous investment. If something unexpected were to happen and you were unable to work for an extended period, the question becomes very simple: would you still want to be paid as a doctor?
Income protection insurance exists to address that exact risk.
Think of yourself as an ATM
One of the easiest ways to understand income protection is to think of yourself as an ATM. Every fortnight, money comes out to cover rent, groceries, HECS, car repayments, bills and the many everyday expenses that quietly rely on your income continuing without interruption.
If the ATM stops working, you still want the money to keep coming out. Income protection is what keeps that cash flow going if you are unable to work due to illness, injury or accident, allowing life to continue with less financial stress.
What is income protection?
Income protection insurance pays you a monthly benefit if you are unable to work because of sickness, injury or illness, replacing part of your regular income rather than providing a one‑off lump sum. The insurer pays you each month while you are unable to work and those payments generally continue until you return to work or reach retirement age, which is commonly defined as age 65.
This structure allows you to keep meeting everyday financial commitments while focusing on your recovery, rather than worrying about how to cover basic living costs.
Why it matters early in your career
Income protection is often described as the foundation of any wealth creation strategy and the reason is straightforward: if you cannot work and earn an income, everything else becomes much harder. Saving, investing, paying off debt and even managing day‑to‑day expenses all depend on that income continuing.
Early in your medical career, you may have limited savings, little access to long‑term sick leave and ongoing commitments such as rent, HECS or car repayments, which makes protecting your income especially important while you are still building financial stability.
Not all policies are the same
Income protection is not a one‑size‑fits‑all product and the most appropriate policy depends on a range of personal factors. These include how much you earn, your health and medical history, your family history and your lifestyle.
How your occupation is defined matters, especially early in your medical career. Some income protection policies look at whether you can still do the specific duties of a medical intern or doctor‑in-training. Others only pay a benefit if you’re unable to work in any job you could reasonably do based on your education, training, or experience.
For medical interns, this distinction is important, as broader definitions may mean you’re expected to work in a non‑clinical role even if you can’t practise medicine.
Just as you wouldn’t google your own health and make treatment decisions without seeking advice from a qualified medical professional, income protection is an area where good advice matters. Speaking with a professional who understands how income protection works can help ensure you are started on the right type of policy, structured in a way that suits your needs and stage of career.
Apply for income protection while you’re fit and healthy
Many interns put off income protection because it feels too expensive. But waiting can work against you.
If your health changes, even slightly, insurers may exclude certain conditions, charge higher premiums, or refuse cover altogether.
Applying while you’re young, fit and healthy gives you the best chance of securing cover with no exclusions or extra costs. In many cases, you can also lock in lower premiums, which can save you money over time.
A risk adviser is a specialist who helps you choose the right insurance. They can explain your options, compare policies and tailor cover to suit your budget so you’re protected without paying more than you need to.
A useful extra: income protection is generally tax deductible
One benefit that is often overlooked is that income protection premiums are generally tax deductible. This can significantly reduce the effective cost of cover after tax, making income protection more affordable than many people initially expect, although individual circumstances will always vary.
The takeaway
Most of us already insure the things that matter to us, often without much hesitation. Income protection is about insuring the thing that makes everything else possible.
For doctors, your ability to work and earn an income is your most valuable asset. Protecting it early can provide peace of mind now and flexibility later, no matter where your career takes you.
Matthew Homewood is a Consultant and Head of Doctors in Training Team at Bongiorno Group.
