Income Protection can provide customers with up to 75% of their normal income when they are off work due to illness or injury giving you a constant feeling of “no matter what happens in life, I can keep a roof over my head”.
Which prompts the following question….
According to a recent survey, only 43% of employees see their salary as a top financial asset.
Salary ranked in fourth place behind an employees home (67%), savings (57%) and pension (48%).
Subsequently, 80% of those surveyed had heard of income protection, but this was mainly among respondents who currently have pensions.
It is fair to say that your income is one of the most important assets you will ever have as it allows you to maintain your current lifestyle. The money you earn pays for almost everything that is important to you such as your mortgage, car, utility bills, children’s education, insurance etc. Therefore, the financial strain you would face if an illness or accident prevented you from earning a living could be severe.
When you take a minute to think about it… how would you maintain your present lifestyle in the weeks, months or even years in which you are unable to work? Would your savings cover it? and even if they did, a long term illness could result in real financial hardship when there is no cover in place to protect your income.
According to the same Friends First survey, 60% of respondents perceived Income Protection to be relevant to them. However, fewer self-employed people deemed it relevant when compared to employed people (57% and 63% respectively), despite not being entitled to access social protection payments in the case of illness. The survey also asked participants how long they could cope without their income, 44% said for 3-6 months, 30% said 6 months to a year, while less than one in ten (8%) suggested they could sustain themselves financially for two years or more. 15% said they didn’t know, while only 3% said they could cope without their income until they got better.
If you are currently looking to protect your income and wish to discuss your Income Protection options, get in touch with our financial services team.
You can also request a call back on our website and we will contact you.