Do you automatically take out insurance every time you buy a new mobile phone? What about your pets – are they insured too?
If you answered ‘yes’ to either of those questions, then you already know about the importance of insurance for safeguarding your possessions and furry friends.
But what about protection for your family? Do you have a safety net that can help with your bills and other monthly obligations should you be unable to work due to an illness or injury?
If not, why not? Especially given the fact you obviously understand the important role insurance plays in giving you peace of mind.
The truth is, sadly, you’re not alone, as only one in four adults in the UK has Income Protection, a type of insurance that pays a monthly, tax-free income designed to help you meet your financial commitments in the event of you being unable to work due to an illness, injury or disability.
Remarkably, far more Brits are likely to have insurance for their pets and their mobile phones than they are Income Protection for themselves and their families. Indeed, research from earlier this year by legal services provider Epoq revealed that nearly a third (32%) of Brits have pet insurance, yet only 25% have some form of Income Protection.
The bottom line is that when the unexpected happens, it’s cover like Income Protection that provides people with the necessary breathing space to cope.
So why do so many people forgo income protection?
Sometimes, it’s because of a lack of awareness. As a result, many people simply do not know what their options are, or they overestimate the amount of help they’ll get from their employer and/or the state.
But when you consider that Statutory Sick Pay (SSP) currently pays just £92.05 a week, and can only be claimed for a maximum of 28 weeks, would your financial needs be covered if you were unable to work?
Other individuals dismiss Income Protection and similar cover because they believe the associated costs are too high. However, the cost of Income Protection depends on a number of factors, including your current health when you take out the policy, your age, occupation and whether or not you smoke.
The reality is that many people pay significantly less than they expected, to secure suitable Income Protection.
The final reason why lots of people ignore Income Protection is because they are under the illusion that the policy simply won’t pay out if they need it to. Again, this is a popular misconception. For example, in 2016 alone, Zurich paid out 89% of Critical Illness claims it received.
Okay, so while this doesn’t relate to Income Protection claims, it is a very strong indicator of just how many insurance claims are actually paid out when a policy holder needs them to.
Would the security provided by Income Protection, and the financial safety net it affords, give you more peace of mind? If so, maybe it’s time you considered looking into it.
Contact Premier Choice today and discover more about this important financial safeguard. You can call us free on 0800 970 1618 or click here to enquire online.
I joined Premier Choice Group as a Healthcare & Protection Consultant in 2017, where I now look after the needs of over 200 clients nationwide. Prior to joining the Premier Choice Group, I worked for a large Private Healthcare Insurer, VitalityHealth, and managed SME and Individual clients across the country.