Data from the Money Advice Service suggests that one million people in the UK are unable to work as a result of a serious illness or injury, every year.
If you were to fall seriously ill or sustain an injury that leaves you unable to work and you have a mortgage or are renting, would you be able to pay your bills during this time?
Some may think that they are too young for income protection, however, statistics from the healthcare and protection insurer shows that there have been an increase in the number of people in their 30s claiming for income protection.
What Is Covered By Income Protection?
There are a variety of illnesses that are covered by the income protection plan, with the most common being:
- Heart attacks
The Association of British Insurers reveals data that suggest mental health was the most coming cause of claims in the UK (2017).
If you have kids or not, or maybe other commitments, if a serious disability meant that you were unable to function and did not earn a regular income – will your savings take long-term care of your bills?
This is relevant to those who are self-employed or working and who do not have sick leave to be paid back. It is worth checking with your employer what you are entitled to before you get income insurance as certain employers might be providing a compensation package.
Cost protection depends on your age, job, health, percentage of income cover, range of illnesses and injuries covered.
It is important to note that the amount of income you are entitled to will not replace the same amount of money you made until you had to stop working. Depending on your policy, you should expect to earn about half to two-thirds of your regular income before tax. That is because the money that would be taken off for the state benefits that you can receive, and the income you receive fro your policy is tax-free.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
If you would like to book an appointment then please get in touch and we can arrange a suitable time to discuss further. We can arrange appointments at a place and time suitable to you, we can discuss your options over the phone or if you prefer email, then this is fine with us.