• Interns and RMOs

  • You are young and healthy, having just started your medical career and likely mortgage and child free. You couldn't possibly need a life insurance plan, right?

    However, as a doctor, you would no doubt see people every day whose lives change in an instant due to an accident or illness. Unfortunately, doctors are not immune to the unexpected and regardless of your stage of life, there are certain events – such as the loss of income due to illness or injury – which we should all be protecting against.

    The risks you face

    If you had a serious skiing accident that prevented you from working for three months or you were involved in a car accident that put you out of action for a year, how would you cope financially? What would happen if you were diagnosed with a debilitating brain tumour and practising medicine was no longer possible?

    These are not unique events and happen every day to people just like you. Furthermore, as a doctor, your profession may expose you to additional risks such as contracting a blood-borne disease, which uniquely impact your ability to work and earn an income as a doctor. Should your sick leave (assuming you have it) run out, how would you pay your rent, the loan repayments on your car or even your mobile phone bill? And what would this mean for the longer term if you were never able to practise medicine again?

    No matter what your circumstances, if your income is important, it’s important to protect it.

    Insurance option to consider:

    Income Protection

  • Income Protection Insurance

    When illness, injury or litigation prevents you from practising in your own specialty, Avant’s Income Protection Insurance supports you, paying a monthly benefit up to 75% of your regular income.

    Things to consider when taking out Income Protection cover

    Monthly sum insured

    Your monthly sum insured is used to determine the monthly benefit payment you will receive if illness or injury prevent you from working in your chosen medical specialty. Your Income Protection plan gives you the flexibility to choose the monthly sum insured that best fits your needs or that you can afford, within defined limits.

    You can select any monthly sum insured up to the limits in the following table.

    Your annual income Monthly sum insured
    Up to $320,000 75% of your monthly income
    Between $320,000 and $560,000 $20,000 per month + 50% of your monthly income above $320,000 p.a.
    Between $560, 000 and up to $2,200,000 $30,000 per month + 20% of your monthly income above $560,000 p.a.
    Above $2,200,000 $60,000 per month

    For the purposes of calculating your annual income, you can include all income derived from your personal exertion less your share of eligible business expenses necessarily incurred in generating that income. For employees, this is your total remuneration package and includes salary, regular overtime, superannuation contributions, bonus payments and any other fringe benefits or compensation.


    Protection for your retirement

    You can increase protection by up to an additional 10% of your monthly income, to a maximum benefit of $2,667 per month, to ensure your superannuation savings continue to grow should illness or injury prevent you from working in your chosen medical specialty.

    The maximum monthly sum insured available is $60,000 including protection for your retirement, plus any increases applicable under the Cover Indexation feature. Any monthly benefit paid will be capped at $30,000 per month after two years.

    Waiting period

    Your waiting period is the time between when you are first unable to work at full capacity and when your benefit payments will commence. Avant’s Income Protection allows you to select from a number of different waiting periods so you can choose one that best matches your needs. As your financial resources increase, you can choose to lengthen your waiting period at any time and reduce your premium.

    You can choose a waiting period of:

    • 30 days
    • 60 days
    • 90 days
    • 180 days
    • one year
    • two years.

    Premium structure

    To help you better manage your cash flow, you have the choice of two premium structures – stepped or level.

    As a general rule, if affordability today is your primary concern, such as when you’re an intern or Doctor in Training, stepped premiums will allow you to purchase what you need today for less money. However, if you intend to retain your Income Protection plan for the long term, level premiums may save you money and your premiums may become increasingly affordable over time.

    Stepped premiums

    If you select stepped premiums, the amount you pay will generally increase at each plan anniversary date based on your age at the time of increase.

    Level premiums

    If you select level premiums, the amount you pay will be based on your age at your plan commencement date. Your premiums will remain the same until the plan anniversary date following your 65th birthday when they will convert to stepped premiums. Until this time, your premiums will only increase if you increase your monthly sum insured or Cover Indexation is applied.

    Income Protection premium diagram

    Changes to premiums

    The underlying premium rates for both stepped and level premiums are not guaranteed. However, once your Income Protection plan has commenced, you will never be singled out for a premium rate increase. Any increase will be applied to all plan holders to whom the same premium rate applies, after 30 days’ written notice.

    Plan ownership

    Legislation and taxation are often changing and there may be tax and/or cash flow reasons that make it beneficial for you to fund your Income Protection plan individually, through a company, partnership, trust, or through superannuation. The choice is yours.

    The three ownership options available under Income Protection are:

    1. individual ownership - this can be you or an individual aged 18 or over who is an Australian resident and has an insurable interest in the life of the insured person
    2. ownership by a registered Australian corporation/partnership/family trust which has an insurable interest in the life of the insured person
    3. ownership by the trustee of a Self-Managed Super Fund (SMSF) of which you are a member.

    Super splitting

    Many of the benefits and features of Avant’s Income Protection cannot be offered within superannuation due to legislative restrictions. To ensure you still have access to the full range of benefits whilst utilising superannuation, we have created the Super Splitting Option which allows you to purchase the same fully featured cover. It does this by splitting your cover into two plans – one within superannuation (‘Income Protection Super’) and one outside (‘Income Protection Super Linked’). If you choose to do this, you must purchase both plans.

    Income Protection Super diagram
    • SIS Act - cover allowable under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) will be owned by the trustee of the SMSF with the remaining cover owned by you.

  • For full terms, conditions, limitations and eligibility please refer to the relevant Avant Life Insurance Product Disclosure Statement(s) which are available by calling us on 1800 128 268emailing us at avantlife@avant.org.au or schedule an appointment with one of our advisors.