Do you really need Income Protection?
Income protection? There are no financial certainties in life these days, and in the current economic climate it’s now more important than ever to protect yourself if you want peace of mind and security. So having reliable Income Protection Cover in place means you could receive an amount of money that replaces most of your net income to help pay your mortgage, bills and general living expenses if you were to get ill, injured or develop a disability that made it impossible for you to work.
Aren’t you the most important thing you have?
Most people seem to insure everything but their lifestyle. From mobile phones to fridges, to cars and even pets, everything is protected except themselves, their lifestyle and what pays for it. Their income. If you don’t insure your income, how can you pay for everything else?
And unfortunately, thinking that ‘it won’t happen to me’ doesn’t measure up to the facts. For instance, did you know you’re much more likely to experience a chronic illness than die before your retirement age. So imagine if you got ill, injured or developed a disability which meant you couldn’t work: how would you live? Where would your income come from?
Why you can’t always rely on State benefits
Many people believe they may be entitled to receive some financial help from their employer or through the State benefit system should something happen to them.
However, in reality you may not even receive enough to maintain your current lifestyle.
The State employment and support allowance may only pay between £100.15 and £106.50 per week and your individual circumstances will affect how much you get.
• Three out of five people could not survive financially if unable to work due to injury or illness
• 98% of people say they could not survive on Government support alone
Please note: the above points are based on our understanding of the current State benefit system. For specific information about your entitlement to claim State benefit, you should contact your local Department for Work & Pensions
1. Munich Re
2. DirectGov.co.uk, Employment and support allowance rates (correct at February 2014)
3. Nationwide, February 2009