How would you pay the bills if your income stopped because of illness or injury?
Income protection can help. It is effectively your own personal sick pay insurance. It pays you a regular weekly or monthly benefit if you become too ill to work due to illness or injury, so you can continue to meet financial commitments and living expenses.
This type of insurance covers both physical and mental illnesses, and injuries that prevent you from working and earning. You choose how soon after being unable to work you want the benefit to start paying, and this benefit will be paid until you can return to work, or until the end of your chosen claim period. It can provide cover for the employed, self-employed, contract workers, freelancers and business owners. There are lots of options to help tailor cover to you.
Some policies also provide cover to homemakers, as whilst they might not be earning an income, they do ‘unpaid work’ which has a monetary value should you need to pay someone to undertake those responsibilities (such as childcare) in the event of illness or injury.
In addition to financial support, income protection policies can include practical support to help claimants with their recovery such as physiotherapy and counselling.
People are statistically more likely to be off work for two months or more through illness or injury, than being diagnosed with a critical illness or dying before retirement. Income protection should therefore be the first insurance option for most people to consider, and your adviser will be able to discuss the options available to you.