Our personal circumstances can change overnight. One day you are fit, healthy and happily working toward your future. The next you might be involved in an accident or be diagnosed with a serious illness that prevents you from working. Are you prepared for the worst?
We are all happy to spend money on home insurance, travel insurance, insuring our belongings, our cars and our health. But what would you do to pay your bills and feed your family if you couldn’t work due to disability or illness? Statistics show that there is significantly more chance of becoming disabled during your working life than of dying before reaching the age of 65. But still relatively few people take steps to ensure that if the worst should happen they will still have an income.
Anybody who works for around 20 hours or more per week should be able to take out an income protection insurance policy at a reasonable cost. These policies will give you a percentage of your current income if you can no longer work. So if you have bills to pay, a family to feed and a household to maintain I think one of these policies is essential.
It is worth noting that an income protection policy should cover mental disorders as well as physical incapacity. There are policies which don’t cover mental issues or problems related to the nervous system. It is a good idea to make certain that your policy protects you from any form of disability that would prevent you from making an income. Ideally, your income protection policy should support you if you are able to return to work on a part time basis.
Another aspect of income protection that should be checked is what will happen if you change roles or employment. Be certain to ensure that your policy will allow you to change your job or employer.
We all think that the worst will not happen to us but each year 27,000 people in the UK leave employment due to ill health or injury. Make sure that your family are secure in the event that you can’t work any more.