What will happen to your income if you cannot work long-term due to sickness, injury or disability? How are you and your family going to be able to make the mortgage repayments, pay bills, feed and clothe your children, and so much more?
Income protection insurance is designed to cover a percentage of your income should you find yourself in this position. With Statutory Sick Pay (SSP) amounting to just £109.40 a week – and you only get this for a maximum of 28 weeks – it’s not going to be long before your savings start to dwindle drastically and the money runs out. Even with other benefits, you may still be unable to maintain your monthly commitments.
Depending on the level of income protection insurance you opt for, it could ensure that you and your family are financially secure from 12 months up to your retirement. Of course, if you recover and can return to work, that’s great, and the insurance policy can stop paying out.
Do I need income protection insurance?
Shelter says that nearly 3 million private renters in the UK are just one month’s pay cheque or less away from being homeless.* Here’s another statistic for you: it’s estimated that over 16 million people in the UK have no savings at all.**
Staggering statistics, aren’t they.? If this hasn’t convinced you to take out income protection insurance, let’s give you some more scenarios:
- Can you and your family live on just £96.35 a week?
- Would you be able to get by or live on just government benefits?
- Do you have enough savings to sustain your needs right through to retirement?
- Are you at an age where you can opt to take early retirement?
- Is your partner/spouse or family bringing in enough income to support you?
If the answer to any of these questions is no, it’s time to consider income protection insurance seriously.
Our Dimora Mortgages team can help you find the right insurance plan for you and your family.
* Article written on 19th September 2019 – Reuter **Article written 8th April 2022 Drewsbury insurance
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