• Training Doctor
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  • You are working hard to progress your medical career and securing a fellowship. You may be considering purchasing your first property, or saving for a holiday, a new car or perhaps saving in advance of undertaking a year of research for your fellowship. So what do you need to protect?

    The risks you face

    By this stage in your medical career, your ability to work and generate income is key to maintaining your lifestyle, particularly in the event you need to meet financial obligations associated with a mortgage, rent or car financing. So imagine for a minute that you suddenly fell ill or were involved in an accident. While you may have enough sick leave to support you through a couple of weeks, what would happen if you were off work for six months or more?

    Would you be able to maintain your current lifestyle? In the event you were saving to support a year of research for your fellowship, could you still afford to do this, or would you need to defer it? How would your plans for the next 5 or 10 years be affected?

    You’ve worked hard to get where you are and you are now starting to enjoy the fruits of your labour, it makes sense that you properly protect your most valuable asset, being your earning capacity.

    Insurance options to consider:

    Income ProtectionLife and TPD Cover

  • 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.
  • Life and Total and Permanent Disablement (TPD) cover


    In the event of death, or when an illness or injury permanently prevent you from practising in your own specialty, Avant’s Life and TPD Cover provides a lump sum benefit.

    Things to consider when taking out Life and TPD cover

    Sum insured

    Your sum insured is used to determine the lump sum benefit payment you or your loved ones will receive upon death, the diagnosis of a terminal illness or an illness or injury that results in a permanent disability. Life Cover and TPD Cover gives you the flexibility to choose the sum insured that best fits your needs or that you can afford, within defined limits.

    You can select any sum insured between the limits in the following table.

    Plan type Minimum sum insured Maximum sum insured
    Life Cover $50,000 Unlimited
    TPD Cover $50,000 The lesser of:
    • $5,000,000; or
    • your Life Cover sum insured.
     

    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 Life Cover and/or TPD Cover 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 sum insured or Cover Indexation is applied.

    Life and Total and permanent disablement premium diagram

    Changes to premiums

    The underlying premium rates for both stepped and level premiums are not guaranteed. However, once your Life Cover and/TPD Cover 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 Life Cover and TPD Cover individually, through a company or trust, or within superannuation. The choice is yours.

    The three ownership options available are:

    1. individual ownership – this can be the insured person 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 – for TPD Cover, your cover will be split into two plans with the cover allowable under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) being owned by the trustee of the SMSF and the remaining cover owned by you.

    Your Life Cover plan and your TPD Cover plan can have different owners. Ownership can be transferred from one entity to another throughout the life of your plan/s with the authority of the current owner or the insured person if cover is held within superannuation. This includes moving ownership from within superannuation to outside of superannuation, or the other way around.

    Super splitting

    Many of the benefits and features of Avant’s TPD Cover cannot be offered within superannuation due to legislative restrictions. To ensure you still have access to the full range of benefits, 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 (‘TPD Cover Super’) and one outside (‘TPD Cover Super Linked’).

    Life Cover can either be purchased within superannuation or outside of superannuation. Life Cover does not need to be split as you will receive the same benefits regardless of whether you purchase your plan within or outside of superannuation.

    However, if you wish to use superannuation to fund your purchase of TPD Cover, the cover provided will be split into two plans – TPD Cover Super and TPD Cover Super Linked. When combined, these two plans provide the same benefits, features and options as TPD Cover purchased outside of superannuation.

    Life and Total and permanent disablement 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.

    Beneficiaries

    The choice to have life insurance is driven by the desire to protect those we love. To ensure your loved ones are getting the money they need, you can nominate who you would like to receive the Death Benefit or Immediate Payment Benefit. For example, you can nominate your spouse, children or estate and the proportion of the benefit you would like each party to receive.

    If Life Cover is on your own life and you have purchased it as an individual, you can nominate who you would like to receive the Death Benefit or Immediate Payment Benefit and what their share will be. You can nominate more than one beneficiary.

    If Life Cover is taken on a life other than the plan owner’s, any Death Benefit or Immediate Payment Benefit will be paid to the plan owner.

    When there is no valid beneficiary nomination/s at the time of your death, we will pay any benefit to:

    • the plan owner if they are not the insured person; or
    • the plan owner’s estate if they were the insured person.

    If you have purchased your cover through your SMSF, any benefit will be paid to the trustee of that fund, which will be distributed under its direction. You should seek professional advice if you wish to nominate a beneficiary(ies) within your SMSF.


  • 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.