Income Protection - What is it?
Income protection is a type of policy that insures you against loss of income if you are unable to work through ill health and your employer pay dries up. Typically, it can pay out up to 60% of your gross income and is usually paid tax free. Of course, if you are self-employed you don’t even have any basic employer provision to fall back on.
For most people their earnings are potentially their biggest asset – 30 years at £585 per week (the national average weekly income according to 2019 ONS data) is over £900,000 and that isn’t taking any promotions or inflation into account. So, you can see how important it is to protect your future earnings from you not being able to work due to accident or illness.
How far can you stretch less than £100 a week?
As at April 2020 statutory sick pay is only £96.85 a week. This is taxable and you can only receive it for a maximum of 28 weeks.
Could you and your family live on that? How long would your savings last? Unfortunately, you would find out all too quickly if you became unfit to work.
Lots of options to protect yourself…
If you don’t feel that this would be enough for yourself or your loved ones to survive on and want to protect your income against you not being able to work, we can help you find a solution.
It doesn’t need to cost a fortune and there are lots of different options we can consider to help you to find the ideal solution for your situation and budget. Different providers work in different ways, so we will also help find the right insurer for you – taking into account your occupation, medical history and income profile.