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Income Protection NHS Doctors’ Sick Pay Initiative For advisers only. Not for use with customers.
What is the Doctors’ Sick Pay Initiative? • The Friends Provident NHS Doctors Sick Pay Initiative can provide doctors who have worked for the NHS for less than 5 years, with an immediate income, as soon as their full sick pay ends. • They won’t have to wait until the end of the deferred period to receive their benefit. • Friends Provident ‘dovetail’ the benefit to be paid after NHS sick pay ceases.
Case study • Jonathan is 26 years old and has just started working as a Junior Doctor. • He wants to make sure that his income is fully protected in the event he is unable to work due to sickness or accident during his working life.
Case study • Jonathan knows that his sick pay with the NHS will increase during the next 5 years, so he doesn’t know whether to take out an income protection plan now or wait for a few years. • He makes an appointment to see his IFA.
Case study • After discussing Jonathan’s protection needs, the IFA recommend a Friends Provident Income Protection policy. • The IFA explains the many features of this product, but in particular, the NHS Doctors’ Sick Pay Initiative which meets Jonathan’s requirements.
Case study During the first 5 years, Jonathan’s sick pay entitlement with the NHS will gradually increase. After 5 years service, he’ll become eligible for the full entitlement of 6 months’ full pay and 6 months’ half pay. The IFA recommends a split deferred Income Protection policy - D26 and D52. The NHS Doctors’ Sick Pay Initiative allows Jonathan to be able to claim Income Protection benefit as soon as his NHS sick pay reduces. * In the event of a claim being accepted.
Case study • Jonathan claimed on his policy after 2 years, his sick pay benefits are 4 months’ full pay and 4 months’ half pay. • Despite his Income Protection policy set on a D26/D52 basis, Jonathan would be able to claim benefit as soon as his NHS sick pay reduces.
Key selling points • Doctors aged 35 and below qualify for class 1 rates which means they can benefit from a comprehensive income protection policy for a competitive price. • Longer deferred periods such as D26 and D52 will make the policy less expensive, and the NHS Doctors’ Sick Pay Initiative means that doctors who have been employed by the NHS for less than 5 years can receive benefit as soon as their full sick pay ends. • Increasable Insurance Option give doctors the ability to increase their cover in line with their own pay increases, whilst the Increasing Cover Option allows the doctors to increase their cover by a set 5% each year. For eSelect Income Protection cover, it can also increase in line with the Retail Prices Index. • Doctors will also benefit from the Doctors’ Sabbatical Leave Benefit as well as the Sick Pay Initiative which are both included at no additional charge.