According to a BBC news report, in October last year UK unemployment rates were the lowest they had been in seven years: “More people were working full-time in the three months to August, up 291,000 to 22.77 million compared with the same period last year. The number working part-time rose 68,000 to 8.35 million.” This is good news for the economy and reassuring to know but it doesn’t give us any idea about the number of people who have had to take time off work due to serious illness or injury.
It’s easy to think that nothing is going to happen to you but the Money Advice Service states that almost a million people every year “find themselves unable to work due to serious illness or injury.” Perhaps your company has a great sickness policy with full pay for employees who need to take time off, but do you know how long that lasts? And of course, you can claim statutory sick pay, but will it last long enough to cover your bills and other expenses?
Sadly, we can’t predict what will happen in the future and unfortunately illness or injury can happen to anyone. Investing in income protection insurance will ensure that you are prepared for such an eventuality and give you peace of mind and certainty of financial security no matter what the future brings.
Protecting your income will cover your financial commitments and allow you to ensure your loved ones are cared for. It will also enable you to keep up with mortgage payments or any other repayments you have to make, pay off debts and cover essential bills as well as daily expenses. Income protection offers an added level of protection and allows you to focus on feeling better and recovering from your illness or injury without the added worry of financial stress and the pressure of having to return to work to start earning again.
Income protection insurance will pay you a regular income until you are able to return to work or until you retire, die or the policy ends. It will not replace your entire income but you can protect up to 75% of it (before taxation). You won’t be able to claim from your insurance if you are receiving any sick pay from your employer; statutory sick pay usually lasts for about 28 weeks after you stop working. The good news is that you can claim as many times as you need until the policy runs out.
You can discuss your income protection insurance needs with our professional Rated Financial Advisers. To find out more about income protection and how we can help you, contact us today on 02084324566.