Most hard working people in the UK faithfully insure their life, car and house insurance so that if something goes dramatically wrong then all their prized possessions and loved ones are looked after and taken care of.
However what if your main source of income was to disappear overnight through an event like illness or injury. How would you cope financially and what if you could no longer afford your car or your house or your life insurance.
What if your family had to struggle financially if you had to cancel your life insurance and then you died? How would that make you feel?
So why is it that so few people in the UK insure their income. Without income then we cannot afford any of the luxuries mentioned above and when you think that for a small monthly premium to insure yourself against loss of income will not cost you any more than a night out with friends then we really all should look at doing this. Income protection could help to pay for your mortgage, rent, household bills, child or school care, any loan repayments that you have to make or just to help with the general living expenses that come with running a home.
There are many reasons why people don’t insure their income and we can look now at a few common reasons for not doing this
- I am fighting fit and healthy and I have never been off work for a day in my life. This might be the case however accidents can happen at any point in life and just because you haven’t been off work up until now then it doesn’t mean it’s not going to happen.
- I have excellent sick pay from my employer in that they give me 6 months full pay and 6 months half pay and I know I will not be off for longer than a year. Although the sick pay benefits from your employer are a benefit to you, there is no guarantee that you will not be off work for longer than a year. Let’s say you were in a near fatal car crash and you had broken both your legs. You may not return to work for 2 years. Will you be able to cope financially once you start to receive SSP (Statutory Sick Pay), currently £86.70 per week. This is the question that you must ask yourself
- Some people will say that the Government or State will look after them. Research would show a different opinion. Of all Employment and Support Allowance Claims made only 25 % of claims are successful and If you are then they only pay £100.15 a week currently. Could you survive on that.
So in conclusion protecting your income is one of the main areas you should look at when protecting you and your family. If you don’t then it may end up costing you more in the future and you may end up losing the things that you have worked so hard to build. https://terminsurancequotesuk.co.uk