Our personal circumstances can change overnight. One day you may be fit and healthy, working toward a rosy future. The next day you may be unable to work due to accident or illness. 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. How would you maintain your household and your family if you weren’t able to work due to illness or injury? Statistics indicate that there is a higher chance of becoming disabled during your working years 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.
A good income protection policy should cover mental health issues as well as physical problems. Some policies exclude mental illness and issues related to the nervous system. It is recommended that you ensure that your policy protects you from any form of disability that would prevent you from doing your work and earning a living. Its worth ensuring that your income protection policy is flexible enough to support you if you are able to return to work on a part time basis.
Something else to consider with regard to income protection is what will happen if you change your job or employment. Ideally your policy should be flexible and allow you to make changes in your career or employment.
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.