The subject of taking time off work due to illness or sickness has never been more topical. The Coronavirus pandemic has brought many organisation’s sick pay policies to attention, with many being told to stay home where possible, and short-notice self-isolation likely at any moment.
However, many don’t know that they can insure against losing their income for this reason. Each year, one million people in the UK find themselves unable to work due to serious illness or injury (a number only likely to increase in 2020) (ABI 2017). Therefore, protecting your income is an integral part of financial well-being, particularly when there are bills to pay.
If suddenly you found yourself ill, or needing to self-isolate for a number of weeks, would you be able to survive on sick pay? If the answer is no, you may want to consider protecting your income.
Income protection, put simply, pays you an ongoing income in the event of being off work due to sickness or injury. It is:
Short-term income protection, which also pays out a monthly sum related to your income, is only payable for a limited period of time (normally between two and five years) and can cover fewer illnesses or situations.
Those who are self-employed, or employed without a sick-pay policy, are most likely to be in need of income protection insurance. If you are employed by an organisation, or someone else, it is always worth checking your agreed sick-pay policy in order to put any necessary insurance in place.
However, anyone can take the extra step to protect their income in case of the unexpected if there is a chance you may not be able to pay bills while off sick.
For more information on income protection, or to find out if you may need it, book a free consultation with one of our experts:
By Phone: 01258 857101
By Email: email@example.com