“I am never off work, so I don’t need Income Protection!”
I don’t know how many times I have heard a client say that when we have been discussing their protection needs. The trouble is that most people never expect they will be off work for any length of time, and even if they are, “well, the state will look after me won’t it?”
Time to get a few facts laid out I think!
Statutory Sick Pay will pay out at a level of £92.05 a week for employees ONLY after they have been off work for more than four days. It will then pay out for a total of 28 weeks after which…you are on your own! Some firms do of course offer sick pay to staff members, but this is usually only after a qualifying period which can be anywhere between 1 month and a year!
Statutory sick pay is significantly lower than the £550 a week National average salary* and with payments lasting just 28 weeks, those with long term conditions could well find themselves struggling financially.
For the Self Employed matters are far worse! There is no support whatsoever if you are unable to work through accident or sickness. You will have to fend for yourself from Day 1!
So, what is the solution? Income Protection!
When arranging your mortgage, the chances are that the first type of insurance that you think about is Buildings and Contents Insurance and then Life and Critical Illness Insurance. This always makes me laugh!
Think about it! OK, the Buildings insurance is a requirement of the lender, but contents insurance is there to protect your possessions. Life Insurance…true very important, it will ensure that those who are left behind if you die will be provided for, but you do have to die first! Critical Illness Cover, fine, but you have to suffer from a pretty nasty condition before it will pay out.
Hang on a second though!
If you cannot work due to an accident, how are you going to pay for your Life Insurance, your Critical Illness Insurance, your Contents insurance perhaps even your Pet Insurance and that is not even taking into consideration your Mortgage!
Face it an income of £398 a month SSP will not go very far will it?
If this has made you stop and think for a few minutes, give me a call on 01206 252025 and we can chat through your own situation and see just how we can assist!
As with all insurance policies, conditions and exclusions will apply