Have you considered what would happen to your family outgoings if you were injured or became too ill to work?
Perhaps you’re part of a company sick pay scheme or you’re relying on the statutory sick pay (SSP) of £95.85 a week for 28 weeks – would this support your bills and lifestyle? For the self-employed, who aren’t eligible for SSP, it’s an even bigger worry.
Many of us make plans to support and provide for our family with a life assurance plan, however this only pays in the event of our death and doesn’t take into account either temporary or long-term sickness or disability.
Income protection policies can typically provide up to 75% of your earnings if you can’t work due to illness or injury and yet there still seems to be a reluctance to protect income in the way that we protect our bills and families if we die. Perhaps we hope the worst won’t happen or plan to use up our savings if it does.
The good news is that providers recognise that the working landscape is constantly changing and are providing a wider choice of income protection and permanent health insurance options to cater for all budgets.
There is now a wide range of deferred terms (how long you choose to wait before receiving the payment) and shorter claim periods at reduced premiums so that protecting your income is an affordable choice for all budgets. Is it time you explored the new range of policies to protect you, your mortgage or your family?
This is an opinion based article and does not constitute financial advice. Davidsons is authorised and regulated by the Financial Conduct Authority.