Many individuals in the current climate are facing the frightening reality of having no salary but still having to pay the bills and care for the family. This can be very daunting but there are ways to protect your income and still afford to stay in your home and maintain your lifestyle should you lose your job or fall ill and be unable to work.
First and foremost, the simplest way to protect yourself is to have a safety net in the form of savings. We advise our clients to have enough savings to cover your outgoings for at least three months. This should be there to cover your bills and living costs if you find yourself losing your job. Find the best savings account with the best interest rate you can find and invest money in to this on a regular basis.
“More of us insure our gadgets and our pets than have Income Protection”
Another option to protect yourself in this situation would be to consider insurance. The most obvious in this situation is income protection insurance.
Income Protection Insurance
Income protection Insurance will replace some of the salary if you have an accident or serious illness that stops you from working for a period of time. The income is paid until the end of the policy term or until you are able to return to work or retire, whichever comes first. This type of insurance can really benefit you if you are self-employed.
Do you need it?
You are most likely to need income protection insurance if you are self-employed or employed and don’t have sick pay to fall back on.
Who doesn’t need it?
- If you have enough savings to support yourself through the period of time.
- If you are near retirement age, perhaps you could afford to retire early
- If your partner’s salary (or family) could support the two of you.
How much does income protection insurance cost?
The monthly cost of this insurance can vary dependent on your circumstances, for example, age, job, smoker/non-smoker, current health, range of illnesses and injuries to cover and the percentage of income you would like to cover.
So how can we help?
With access to providers from across the market, we can provide you with bespoke advice on protecting your income to ensure that you have the right policies in place at the right price to protect you and your family if you are unable to earn your normal income due to an accident or long-term illness.
Get in touch today if you would like to find out more about income protection insurance.
*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.