Saving life comes with its own set of risks. Medical professionals face several challenges that put their financial security on the line. High stress environments, exposure to infectious diseases, and long working hours increase the chance of injury, illness or even death. Legal issues and uncertainty about their jobs also add to their worries. One of the articles published in the Times of India revealed that 82.7% of doctors feel stressed in their profession. All these problems can seriously affect their lives, causing harm, financial troubles, emotional pain, and even death.
Understanding Life Insurance Premium?
Life insurance premiums are the regular payments made to an insurance company to maintain a life insurance policy. The premium amount is calculated based on factors such as age, health, lifestyle, occupation, income and coverage amount. Additionally, premium is the cost of having a life insurance policy, and they ensure that the insurer will provide a payout to beneficiaries after the policyholder’s death. Doctor’s profession and the possible risks associated with their specialisation plays a significant role in determining their premium rates.
Most Common Risks Faced By Doctors
Doctors face numerous risks while performing their daily practice. It includes:
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High stress environment:
Doctors face high stress environment due to various factors like complex medical cases, life-or-death decision making and heavy workload. According to the union govt, as of February 2024, India’s doctor-to-patient ratio was 1:834, which means 1 doctor to 834 patients. This staggering patient load, combined with long working hours and irregular schedules, takes a toll on their mental and physical well-being .
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Exposure to Infectious Disease:
Doctors are at high risk of catching infectious disease due to their close contact with the sick patients.Covid-19 Pandemic was a hard phase, not only for the general public but more for the Frontline Covid warriors. The pandemic caused high mortality not only in patients but also health care providers. Â According to Indian Medical Association’s data, Â a total of 1,596 doctors died during COVID-19 in the country – Â 757 during the first wave and 839 in the second wave. In addition, the pathologist and radiologist face infectious disease exposure risks through direct contact with infected tissue samples, bodily fluids, and contaminated equipment.
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Malpractice Lawsuit:
Doctor face the risk of malpractice lawsuits when patient or their families claim that medical care fell short of standards, resulting in harm or injury. This can happen due to misdiagnosis or delayed diagnosis, surgical errors or complications, medication mistakes etc. Research from the National Library of Medicine, shows an alarming annual incidence rate of up to 5.2 million cases related to medical malpractice across various healthcare settings in India.
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Physical and emotional strain:
Doctors often suffer from physical and emotional strain due to demanding nature of their work, leading to exhaustion and burnout. Long hours irregular schedules and high stress environment takes a toll on their physical health, while the emotional weight of dealing with life-or-death situations, patient sufferings, and loss can lead to huge stress, anxiety, and depression. A study by the National Institute of Health stated that 40% of only critical care doctors had moderate to severe stress while working in ICU setups in India.
As a result, life insurance premiums for medical professionals are often higher due to the factors such as malpractice lawsuits, physical and emotional strain etc.
Importance Of Life Insurance for Doctors
Life insurance plays an important role in securing the financial well-being- of doctors, who often carry significant debt burdens from medical school and invest substantial time and resources in their profession. In the case of premature death and disability, life insurance can cover mortgage payments on their home, fund their children’s education, and their spouse’s living expenses. Doctors under life insurance plan are also eligible for tax free benefits under Section 80D, on the premium paid.
Furthermore, life insurance offers additional plans that provide an extra layer of perks for doctors. These plans include:
- Term Insurance: It is a type of life insurance that provides coverage for a specific period, or term, of time. It offers a death benefit to the beneficiaries if the insured person passes away during the term of the policy.
- Term+Investment Plan: It is a combined Insurance and Investment plan where some part of  premiums are invested in the market, providing returns based on market performance, along with lifetime coverage benefits. Also, the amount received on the maturity of this plan is free from tax.
- Capital Guarantee Plan: This plan ensures that the doctor’s receive at least the amount they invested. Itprotects the initial investment made by a doctor from any potential losses, regardless of market conditions. Maturity benefits, in this plan as well, are entirely tax free.
- Annuity Plan:This plan provides lifetime or fixed-term regular payments. Doctor pays a lump sum or regular instalments, and the insurance company invests them and pays back the income generated as payouts.
All these plans are a good option for doctors looking to secure their family in their absence and hence, having a robust life insurance plan not only provides a financial safety net but also peace of mind.
