Income protection insurance is held by few of us but could provide vital revenue at a difficult time
What would happen if you fell so seriously ill you could not work for several months? Only a small number of us could give a confident answer. One in 10 employees is covered by income protection insurance by their employer and, if their claim were accepted, would get a significant proportion of their salary paid.
The rest of us would probably be dependent on our employer’s willingness to continue paying us, the state, the earnings of a partner, or on our savings. In the worst cases, we may end up selling our home, or downsizing, if we could not meet the mortgage or rent. In most cases, we would be much more aware of having difficulty paying everyday bills.
Employers are not obliged to keep paying people in these situations and, the more generous among them, tend to pay a full salary for three months and then half pay for the next three. Support is available from the state, in the form of statutory sick pay, but it is not generous.
While most of us only hear about this form of protection when we take out a mortgage, this form of protection is one of the least understood and most valuable. Talk to Peter Harvey today and find out more about Income or Salary Protection.