Income protection is a form of insurance that people don’t often think about. This is mainly because people don’t tend to think about what would happen if they weren’t able work. Income protection can be a financial life saver if the person bringing the majority of income into the house is unable to work due to an accident or issues with their health.
According to research conducted by Scottish Widows (source – Cover Magazine), around 35% of people admitted that if they or the person they lived with were off work for six months or longer, they would be unable to survive on a sole income. In February 2014, there were over 2 million incapacity claimants who were unable to work due to illness or injury (source: Dept of Work & Pensions).
What are the benefits of income protection?
- Peace of mind – there is no worry of financial struggle if you can’t work due to injury or illness.
- Does not effect state benefits – income protection does not effect your statutory sick pay.
- Deferred period – you can set up the policy to start paying out at a certain time after you are signed off from work e.g. 8 weeks. This varies from insurer to insurer so always double check the deferred period available.
- Can cover up to 60% of your annual income.
There are lots of different insurance companies that offer income protection policies, all of which are slightly different to each other. If you would like more detailed information about income protection and to review the market, it is always worth using a broker. A brokers job is to offer the most detailed review of the market and find what suits you.
Our qualified, professional brokers are here to help you, it’s always worth a call as you never know what we might be able to do for you.