HOW WOULD YOU PAY YOUR BILLS IF YOU COULDN\u2019T WORK?<\/p>\n
In today\u2019s unpredictable world, safeguarding financial stability is more crucial than ever. Many\u00a0of us would struggle to keep up with our essential outgoings, such as mortgage and rent, if we lost an\u00a0income due to illness or an accident.<\/p>\n
Whether you\u2019re employed or self-employed,\u00a0income protection is a long-term insurance policy\u00a0designed to ensure you receive a regular income\u00a0until you either retire, are fit to return to work or\u00a0pass away.<\/p>\n
Surprisingly, only a small fraction of the UK\u00a0population \u2013 less than one in ten, to be precise\u00a0\u2013 has this type of cover in place, according to\u00a0research[1]<\/span>. This is despite the alarming statistic\u00a0that 42% of UK adults are concerned about their\u00a0household\u2019s ability to cope financially if they\u00a0cannot work[2]<\/span>.<\/p>\n GENDER PROTECTION GAP<\/p>\n There is also a notable gender protection gap.\u00a0A significant 29% of women surveyed indicated\u00a0that they couldn\u2019t afford protection, in contrast\u00a0to 23% of men. Moreover, over a quarter of\u00a0women admitted they would have to rely on\u00a0their partner\u2019s income if they found themselves\u00a0unable to work. This reliance underscores the\u00a0importance of personal financial independence\u00a0and protection planning.<\/p>\n REPLACE A PORTION OF YOUR INCOME<\/p>\n Income protection insurance offers regular\u00a0payments that replace a portion of your income.\u00a0These payments are made until you can return to work, retire, pass away or reach the end of the policy term \u2013 whichever happens first. Typically,\u00a0the policy covers between 50% and 65% of your\u00a0income, addressing a wide range of illnesses that\u00a0may prevent you from working, both in the short\u00a0and long term.<\/p>\n CLAIM AS MANY TIMES AS NECESSARY<\/p>\n A significant advantage of this type of insurance\u00a0is its flexibility. You can claim as many times as\u00a0necessary during the policy\u2019s lifespan. However, it\u2019s\u00a0important to note that there is often a pre-agreed\u00a0waiting, or \u2018deferred\u2019, period before payments\u00a0commence. Typical waiting periods range from\u00a0four weeks up to a year, with longer waiting times\u00a0generally resulting in lower monthly premiums.<\/p>\n FEW EMPLOYERS OFFER EXTENDED SUPPORT<\/p>\n It\u2019s crucial to differentiate income protection from\u00a0critical illness insurance, which provides a one-off\u00a0lump sum upon diagnosis of a specified serious\u00a0condition. When unable to work due to illness\u00a0or an accident, many people might assume their\u00a0employer will continue to provide some income\u00a0support. The reality is that employees often\u00a0transition to Statutory Sick Pay within six months,\u00a0with few employers offering extended support\u00a0beyond a year.<\/p>\n EVALUATING YOUR EMPLOYER\u2019S SUPPORT<\/p>\n It\u2019s essential to verify what support your employer\u00a0offers if you become incapacitated. The loss of\u00a0income can quickly erode savings and make it\u00a0difficult to cover essential household bills,\u00a0especially if you\u2019re self- employed and lack sick\u00a0pay benefits. This is where income protection\u00a0insurance becomes invaluable, providing the\u00a0peace of mind that your financial obligations are\u00a0met, even in the face of adversity.<\/p>\n WILL YOU AND YOUR FAMILY REMAIN\u00a0SECURE DURING UNEXPECTED LIFE EVENTS?<\/p>\n Income protection insurance is essential to creating\u00a0a comprehensive financial plan. It ensures that you\u00a0and your family remain secure during unexpected life\u00a0events. Contact us for further information if you have\u00a0concerns or want to explore the options available.<\/p>\n <\/p>\n <\/p>\n Source data:\u00a0[1] The survey data was collected and analysed by Censuswide\u00a0Research. The total sample size was 4,043 UK adults, including\u00a01,000 self-employed and 1,000 private renter respondents.\u00a0Fieldwork was undertaken between 17 \u2013 29 April 2024. The\u00a0survey was carried out online. The figures have been weighted\u00a0and represent all UK adults (aged 18+).\u00a0[2] The survey data was collected and analysed by YouGov\u00a0plc. The total sample size was 2,059 adults. Fieldwork was undertaken between 2 \u2013 8 February 2024. The survey was\u00a0carried out online. The figures have been weighted and are\u00a0representative of all UK adults (aged 18+).<\/p>\n THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL, OR FINANCIAL\u00a0ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX\u00a0TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES\u00a0OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE\u00a0FUTURE.<\/p>\n FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.<\/p>\n","protected":false},"excerpt":{"rendered":" HOW WOULD YOU PAY YOUR BILLS IF YOU COULDN’T WORK? In today’s unpredictable world, safeguarding financial stability is more crucial than ever. Many of us would struggle to keep up with our essential outgoings, such as mortgage and rent, if we lost an income due to illness or an accident. Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to…<\/p>\n