How far would you get on £94.25? If you became too ill to work, you’d soon find out! Statutory Sick Pay is only paid for up to 28 weeks (although your employer may decide to pay you more). So what happens if you end up on long term sick leave?
Each year thousands of people in the UK find themselves unable to work due to a serious illness or injury. However, income protection insurance can provide a monthly income to help cover your regular outgoings if you can’t work.
The amount of cover is based on a percentage of your gross earnings. It is suitable for both employed and self-employed people. There is no limit on the number of claims you can make and, if you are never able to work again due to illness or injury, the benefit will usually be paid until the earliest of your selected retirement age or for the term of the policy if earlier. Benefits are generally different between providers
Who can benefit from taking out Income Protection cover?
Anyone between 16-59 who does not get paid by their employer indefinitely when they are off sick from work should consider an Income Protection policy. Most people would not be able to maintain their standard of living if they had to rely on benefits from Statutory Sick Pay and Employment and Support Allowance (ESA). So Income Protection could form a key part of their financial protection needs.
But the need for Income Protection is even greater for Self-employed people who would not receive the sick pay provision that is often provided by an employer. It doesn’t matter whether or not you have children or other dependants. If illness would mean you couldn’t pay the bills, you should definitely consider income protection insurance.
How much you pay each month will depend on the policy and your circumstances. Factors such as age, job, whether you smoke or have previously smoked, your current health including your weight and medical history will all be considered.
With a little income protection we can help keep your engine running. It is important to consider the benefits and exclusions of a contract as these vary between providers, to find the best way to protect you and your family, talk to us today. Click here to send us a message or call us on 01332 447 484.
Income Protection Plans typically have no cash in value at any time and cover will cease at the end of term. If premiums stop, then cover will lapse.