Income Protection is a policy that protects you in the event that you are unable to work due to accident or sickness for a period of time.
With Statutory Sick Pay only being £109.40 per week and only available for up to 28 weeks, it is vital that you review protecting your income as we know that a household cannot survive on £109.40 a week, especially in a cost of living crisis.
Even if your employer does pay Sick Pay, it is only usually for 3 months and will either stop or reduce by half after.
If you are self-employed, it is even more of a reason to take out an income protection policy as most self employed people do not earn if they are not working and if you are the sole breadwinner, this will put immense stress on your family’s finances, which could lead to you selling your property due to the costs no longer being affordable.
More than 1.6 million people are unable to work because of long term sickness, 40% of that figure being 50 years old or younger.
What Income Protection does is pays you 60-65% of your gross monthly income, ensuring that you are able to cover the essential living costs (ie: mortgage, rent, living expenses) whilst you are recovering until you are able to return to work. We can link your cover to RPI, so that the payout is the equivalent value of what you originally applied for in the future, so inflation does not reduce the value of the protection.