Protecting You, Your Family and Your Private Practice.

This is Gemma at Clinic Alchemy, the Alchemist to give you great tips on how to manage and grow your wealth.

In the vlogs to date I have done just that; given you tips on how to grow your wealth (and pay less tax)!

However I’m conscious that what I have yet to do is drill into you something incredibly important…… putting plans in place to make sure you, your family and you Private Practice will be ok if things go horribly wrong.

Just imagine, after listening to all the great advice from the Alchemist’s here; your practice is booming, your investments are growing and then CHA BANG something horrible happens ….., you can’t work, you can’t pay the mortgage, you can’t pay the Private Practice bills, you can’t pay your bills; your practice goes belly up, you go belly up.

Ok so today I’m going to tell you how NOT TO LET THIS HAPPEN.

Yes, you know what I’m talking about; INSURANCE!

I know, it is not exciting, none of us want to pay for insurance. However none of us want to be in a position where things go wrong and we need to claim on insurance and we don’t have any in place.

And things to do go wrong; none of us our Superman or Superwomen.

So doctors and Surgeons hang up your cloak and bear with me for 4 minutes while I give you a quick tour of the exciting world of insurance! In doing so I hope that you, your family and your Private Practice will always be ok.

The first thing to consider is:

You and your income

Let’s assume poor Cheryl (our fellow Alchemist 🧪) got really down in the dumps and couldn’t work. In fact, if this went on for quite an extended period of time. (Or perhaps she got run-over by a bus or had a horrible accident), something happened (sorry Cheryl!) that meant she couldn’t work.

Cheryl how are you going to pay your mortgage and bills?

  • Through savings

Then what?

  • Family and Friends

(Really)?! Then what?

  • ‘Borrow’

Unlikely as you have no income, who will lend to you?

  • ‘I can’t pay my bills’

Horrible and none of us want to get into this position.

But Cheryl if you had an income protection policy in place it would pay you a monthly benefit to replace your loss of income until you could go back to work.

Dr Cath, what would happen in your thriving Private Practice if something happened to you and you could not work?

  • Your patients aren’t going to hang around, they would go elsewhere
  • Your Private Practice would not receive any revenue
  • You wouldn’t receive an income
  • Bills will be unpaid
  • The business could go belly up
  • *You* could go belly up

Again, if you had insurance in place (this could be key man insurance or income protection insurance) you and or your business will receive a benefit to replace the loss of revenue and income. It could even cover you for the cost of a replacement to work in your Private Practice until you are back on your feet.

The second thing to consider is:

Protecting your family

Doctors, what would happen if you were not around anymore?

Sorry to be morbid… but you are doctors and you should know, death does happen.

Not only would it be tragic for your family, but would they be financially ok without you? If the answer to this is NO then get yourself a decent wedge of life cover to ensure your family will be ok. Make sure the life cover is in trust so it does not form part of your estate for Inheritance Tax purposes.

How about your business?

Is your business set up in such a way that you have a partner? Will they receive your share of the business or will it go to your spouse? Does yourspouse want to have a role in the business, will your spouse be good in the business or would it lead to friction / potential bad management decisions? There is insurance known as Key Man and Shareholder that enables the surviving business partners to buy the shares from the surviving spouse to ensure the practice can continue to thrive whilst ensuring your spouse has a fair pay off.

Lastly, lets us consider:

Protecting your health

What would happen if you got one of the big C’s? Or any critical illness?

Again a bit of a traumatic time, you may recover, but it is not really a time that you and your family want to be worrying about paying the mortgage, or paying the costs of adapting the home to your needs. However if you had Critical illness cover, a lump sum of money would be paid to you that can be used to help you and your family in a time of need.

I have briefly dusted the surface on insurance and ones to consider. I hope it has given you some food for thought on making sure that you, your business and your family are ok whatever life throws at you.

Get advice and make sure you are adequately covered.

Now one bit of good news on insurance. Many insurance policies can be put through the business as an allowable expense. In doing so, yes you pay less tax!

And who said insurance was boring!

Result. Cha Bang to Cha Ching!

This is Gemma at Clinic Alchemy, for more information feel free to get in touch ( and give us a thumbs up.

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