Why income protection insurance is essential

Being struck down with an illness or disability and being unable to work as a result is something that most of us would rather not think about; however, burying our heads in the sand is no way to ensure it won’t happen. In fact, there is no way to ensure it won’t happen but we can at least be prepared if it does.

Studies suggest that 16% of the current working population will suffer a disability at some point in their lives that will prevent them from earning a living. 300,000 people are forced to quit work and rely on benefits because of illness or disability every year. Yet we hear every day about how the benefits system is letting people down, and that vulnerable adults are slipping through the net. The reality is that we can no longer rely on the state to support us if we are incapacitated by illness. We need to take these measures ourselves, and as soon as possible.

Living costs

Income protection insurance is the best way to ensure that, should you be unable to work through illness or accident, you and your family will not suffer undue financial hardship. Depending on the policy, income protection pays out a percentage of what you would have earned at work from the point when you are unable to do so. It should be at least enough to cover you and your family’s basic living costs, and may help with the necessary expenses of adapting to life with a disability or serious illness.

Income protection insurance can cover you in the event of permanent or temporary incapacity. It may be that after a certain period you will recover enough to resume work. Income protection can be used to tide you over for as long as is needed. If you have a relapse and are once more unable to work, you’ll be able to claim again.

Financial planning

Experts recommend taking out income protection insurance as part of your basic financial planning. Most of us aren’t in a position to fall back on our savings or the support of family should we find ourselves unable to work. Your employer may be able to help you, and you may be eligible for benefits, but this can change and shouldn’t be relied upon.

At Alan Boswell Group we offer a range of income protection and related insurance policies to cover you should you become too sick to work. Contact us today on 01603 218000 and let us help you to make your future that much more secure.