Income Protection

Designed to pay out part of your income if you are unable to work due to illness or accident.

Income is everything! Income pays the mortgage or the rent, the loans and the credit cards.

It pays for council tax, water, gas, electricity, the car loan, food, drink, clothes, holidays, birthdays, Christmas…

…The list goes on and on, all paid for by income. We depend on income and without it we are in serious trouble.

Have you ever stopped to ask yourself how safe your income is?

Do you need income protection insurance?

  • You've probably considered your job security from time to time. For many people, a "job for life" is a thing of the past. We know that it pays to be mindful that our employment and income situation can unexpectedly change.
  • But redundancy is not the only threat to your income. What if you become unable to do your job? What if illness or an accident prevented you from working? How long could that situation last? Who pays what, and for how long? And is there anything you can do about it?

How much could you expect to receive in welfare support from the government?

Imagine your income is reduced to just £88.45 per week*. Could you survive on that amount? This is what the goverment may provide.

To find out how much welfare support you might be entitled to, visit turn2us.org.uk or entitledto.co.uk.

* Source: 'Statutory Sick Pay (SSP)' - gov.uk (18 May 2015)

Further information on Income Protection

They might do, but how much? And for how long? Do you know for sure? When did you last check?

Employers are obliged to pay Statutory Sick Pay, and this can be paid for up to 28 weeks weeks of your illness. With Statutory Sick Pay, the most you could receive is £88.45 per week* – that's less than the average weekly grocery shop for a family of four!

It would be a smart move for you to check your contract of employment or write to your employer to ask about what you are entitled to.

To help you ask for the information you need, here's a draft you can use to write an email or letter to your employer:

Dear ......

I'm just checking some financial matters to see if I need any additonal personal insurance.

Please could you confirm:

  • If I become ill and cannot work, what benefits would I get from the company (ignoring any State benefits)?
  • How long are they guaranteed to be paid for?
  • What would happen after that?
  • Does the company have an insured income protection scheme? If so, how much would that pay me and for how long?

* Source: 'Statutory Sick Pay (SSP)' - gov.uk (18 May 2015)

Did you know every year around 330,000 people move from work to receiving the State's main health related benefit? This benefit is called "Employment and Support Allowance" (ESA).

ESA benefit is just £86.70 per week. About 66% of people claiming ESA are men, and 66% are under the age of 50.

The average duration is 7 years.

Do you have the financial resources to keep paying the bills for such a long period of time?

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We don't charge you a fee

If you start a policy, we will be paid a commission by the insurance company. The insurance company will usually pay for any doctor's fees if reports are required.

Did you know?

75% of employers do not currently offer any protection benefits at all.

That means no life insurance, income protection or critical illness if your health takes a turn for the worse.

In the UK, 300,000 people have to leave their jobs due to illness or injury every year

…and we're not talking about a short break here; the average duration of long-term sick leave is 7 years, which sounds more like a career end than a career break.

Source: Swiss Re, The Insurance Report 2013