LIFE: Why I'm Considering Income Protection

*Advertorial Content - Guest Post

If the Covid-19 pandemic has taught me anything, it’s that life is truly unpredictable. Who’d have thought that we’d experience something like this in our lifetime that would disrupt everything we knew? It’s got me thinking about safeguarding mine and my family's future against the ‘what if’s’ which led me to considering insurance cover.

 In particular, income protection. Income protection is a life insurance product that is basically designed to cover a percentage of your salary (usually around 50-70%) if you become too ill or injured to work. And it’s not just the employed that this applies to - self-employed people can get income protection too and actually, it’s probably more important than for anyone else. 

How does income protection work?

Income protection allows you to continue paying the essential bills such as your mortgage or rent payment even when you can’t go out to work. Upon claiming, it pays out regularly until you can either go back to work, until the policy ends or you retire or pass away. You can also claim more than once a policy, which is really handy. 

If you’re employed, you might be eligible for Statutory Sick Pay (SSP). This is great but at £95.85 a week, it might not be enough to get you by. Income protection is a weight off your mind when you need it most, so that you can focus on getting better. 

Of course if you’re self-employed, no work is likely to mean no income. You can’t rely on things like SSP. Income protection is all the more important if you’re self-employed. You can take out an individual policy rather than a business one, but you need to ascertain on what basis the insurer will pay out. 

Is it expensive?

Income protection is an affordable product, however it’s different for everyone and will completely depend on your own individual circumstances. Premium prices are based on your age, your marital status, whether you smoke or have previously smoked, your lifestyle (such as whether you have any high risk hobbies like extreme sports), your job, your health (current health, your weight and your family medical history), the deferral period you decide on and how much income you’d like to receive each month.

You need to consider how much income you’d like to receive each month. I’d want enough to cover the mortgage repayments and bills at least, but it’s also important to consider day-to-day living costs - especially if you are usually out every weekday working in an office. As lockdown has taught us, you’ll probably end up spending more money on food if you’re at home all the time. 

Income protection is certainly an important insurance product - potentially one of the most vital as the vast majority of us have a regular income to protect. There’s a lot of information online that can sometimes be a bit overwhelming, so turn to an insurance broker if you’re unsure and need some help and advice. 

Feel free to leave a comment - I love reading every single one :)

Helen x