Income Protection
Long term illness, injury or incapacity can have a devastating impact, particularly if ill health or disability affects your ability to earn a living. Loss of earnings may be offset through receipt of Statutory Sick Pay if you are employed, but this is limited in amount and duration – currently £116.75 per week for up to 28 weeks **. If you are self-employed, then no Statutory Sick Pay is available.
Some employers will continue to pay employees who are absent due to health reasons, but this is very likely to be limited in duration, dependent on length of service and may taper off, but will cease altogether after a set period, for example: full pay for 3 months, 50% pay for months 4-6 then no payment from month 7 onwards.
Income protection is an insurance policy that pays out if you’re unable to work because of injury or illness and is designed to protect up to 65% of your gross (pre-tax) salary. You should think very carefully about how you will cover your household bills if you find yourself unable to work for an extended period and income protection insurance can provide the solution. For employed individuals, policies are usually arranged to follow any sick pay you will receive from your employer, and the longer your deferral period, the lower the premiums you will pay. Other factors that will affect your monthly premium are your age, occupation, and the level and term of your policy.
** Figures from Gov.UK website November 2024
Get In Touch Today
At Best Advice, we are able to arrange this important cover for both the employed and the self-employed, tailored to your circumstances to protect you and provide peace of mind. Please get in touch if you would like to discuss the options and we’ll be delighted to provide quotes.