Families rely on a regular wage. Most are not in the comfortable position to fall back on savings if something goes wrong. The cost of housing and living leaves very little over each month. Without that buffer it’s a scary situation when you cannot work because of sickness or disability. The bills will keep on coming but not the wage packet to be able to afford to pay them. Income Protection can be a wise move for families, especially those with only one member in employment.

Income Protection is designed to provide relief for families facing their darkest times. You can take out an income protection policy to give you peace of mind. Hopefully then you can focus on getting better rather than stressing over money worries. Watching the red letters build up and getting calls chasing payments, none of that will help with your recovery.

Income Protection Through Work

But do check first to see what provision you get through your current job. Some companies provide some form of income protection as standard. Just check your employment contract to see if you are entitled to any and what exactly it covers.

When you took out your mortgage double check it didn’t come combined with some kind of income protection insurance too.

SSP

If not, there is always statutory sick pay. But this only last up to a month. A month isn’t very long to recover. For example, a minor fracture can take eight weeks to heal, whilst more severe fractures can take up to six months. But you might need further appointments after that which mean you will miss even more work.

SSP is handy combined with Income Protection as you can choose to defer it to start when SSP ends. A longer deferral rate the length of time from claiming (also known as the waiting period) and getting your payment tends to mean cheaper premiums. Something to consider anyway.

Benefits

You can leave yourself at the mercy of state benefits, but these can change. Also, they might not provide you with enough money to replace your lost wages. This can be hard when you have a family to support and are used to living in a certain degree of comfort. Suddenly having to make cutbacks or go without can be difficult when you are already dealing with health issues. This article on managing your household budget might help.

Buying Your Own Policy

Depending on your policy Income Protection can last until you return to work or retire. So, if develop a long-term health condition that impacts your ability to work its much safer to have had an Income Protection policy that can cover up to 70% of your lost wages. It’s scary to think that according to the ABI (Association of British Insurers) one million workers a year find themselves unable to work due to a serious injury or illness. Many of us just take life day to day but don’t know when it might throw us a curve ball that changes everything.

What To Check For

Make sure your fully aware of any exclusions. Companies will look at your family history and might exclude some health conditions based on this. It’s worth finding out if your income protection payments will go up with the cost of living or stay the same each year.