Protection
Income Protection for Doctors: Sizing Cover Around NHS Sick Pay
For most doctors the single most valuable asset is the ability to earn, and income protection safeguards it if illness or injury stops you working. Three things matter most when sizing it: get "own occupation" cover so it pays if you cannot do your specific medical role; insure roughly 50–70% of gross income; and match the deferred period to the point at which NHS sick pay drops. Here's how to put those together.
NHS sick pay: the step-down
NHS sick pay depends on length of service, increasing each year:
- Year 1: 1 month full pay, 2 months half pay
- Year 2: 2 months full pay, 2 months half pay
- Year 3: 4 months full pay, 4 months half pay
- Year 4: 5 months full pay, 5 months half pay
- Year 5+: 6 months full pay, 6 months half pay
Because cover is more expensive the sooner it pays out, a common approach is to set the deferred period so the policy begins around the time your full pay would end or halve — bridging the gap rather than duplicating what the NHS already provides.
Why "own occupation" is non-negotiable for clinicians
Definitions of incapacity vary between insurers. Own-occupation cover assesses a claim against the duties of your profession — what a doctor or surgeon typically does — rather than whether you could do any job at all. For a specialist whose income depends on specific skills, that distinction is critical, and it is one of the most important things to get right when choosing a policy.
How much cover, and over what term
Most insurers will cover 50–70% of gross income (some specialist providers more), and because the benefit is generally paid tax-free it can replace a high proportion of take-home pay. The right benefit level, deferred period and term depend on your outgoings, your NHS entitlement and any other cover you hold — which is exactly the context a specialist protection adviser will work through with you.
This article is general information for medical professionals and is not personal financial advice. Figures relate to the 2026/27 UK tax year and may change. Professional Medical Financial is an introducer that matches you with FCA-regulated advisers; any regulated advice is provided by those firms. The value of investments can fall as well as rise. Your home may be repossessed if you do not keep up mortgage repayments. NHS and other defined-benefit pensions provide valuable guaranteed benefits and transferring out is unlikely to be suitable for most people.
Frequently asked questions
NHS sick pay is valuable but time-limited — it steps down from full to half pay and then ends, based on your length of service. Income protection is designed to bridge and extend beyond that, which is why the deferred period is usually set to match when NHS pay reduces.
Own-occupation cover pays out if you cannot perform your own role — the standard most clinicians should aim for. Weaker definitions may only pay if you cannot do any job at all, which is far less useful for a specialist.
Most insurers cover 50–70% of gross income (some specialists higher). Because the payout is usually tax-free, that can replace a large share of take-home pay.