Rising long-term health issues demonstrate the importance of this plan B
Recent Office of National Statistics research shows that 2.5 million* people are known as ”economically inactive” because of long term sickness in the UK.
If this number alone wasn’t staggering enough, over 400,000 of these cases have arisen since the start of the coronavirus (COVID-19) pandemic.
It’s time for a Plan B
The statistics are scary, and while health should always be the top priority, it’s essential to consider the financial side of things.
Policies like income protection insurance are there to ensure you have a financial back up, if illness were to suddenly strike.
Income protection insurance can typically cover up to 60% of your monthly income. This means that if you got injured or ill out of the blue, your policy is there to fall back on.
Why you need to act now
Firstly, getting policies like income protection insurance when you’re younger means your premium will likely be cheaper.
But more alarmingly, recent research shows that by 2040, more than 9 million people in the UK will be living with major illnesses.
The number of UK adults with conditions such as cancer, diabetes, and kidney disease will rise by 2.5 million - an increase of 37% compared with 2019 figures, researchers said.
Popular excuses
- “I can borrow from my family and friends” - Looking at Aviva’s claim statistics, their average duration of an income protection claim is 7 years and 5 months**. Could your loved ones facilitate paying your bills for that long? Plus, Aviva’s longest-running income protection claim ran for 37 years. It started when the customer was in their 20’s and over that time they paid the customer with payments totalling approximately £200,000!
- “It won’t happen to me” - The 2.5 million people living with a long-term illness in the UK would beg to differ. Illness does not discriminate and it can happen to anyone at any time. Being armed with a policy is one of the best ways you can get some peace of mind.
- “I’ve got my savings to fall back on” - Savings can only get you so far, and if you were diagnosed with a long-term illness, the ramifications can be long lasting. Plus, who’d want to use up their hard earned savings to pay the bills?
- “Doesn’t the government give you sick pay?” - Statutory sick pay (SSP) can only get you so far. The current rate of SSP is a mere £109.40 per week***. Could you get by on this amount every week?
How long can this policy cover you for?
An income protection policy will normally cover you until the age of retirement so that you’re covered throughout the entirety of your working life.
However, it all depends on your unique circumstances and affordability - both of which will be taken into account.
What can you use your income protection payments for?
The regular monthly payments you’ll receive from your income protection can be used for anything. Here are a couple of suggestions;
- Food shopping
- Childcare costs
- Paying the bills
- Toiletries
- Household products
- Petrol money
- Vets bills
The list goes on. Ultimately, you can do what you want with your monthly income protection payments.
Your plan B can help you in other areas of your life
When you take out cover these days, many of the UK’s leading life insurance providers offer added benefit services**** you can use throughout the duration of your policy.
- Mental health support - you may have the option to speak to a mental health specialist online
- Access to 24/7 virtual GP appointments - having access to 24/7 GP appointments in your back pocket can be an absolute game changer if you need to speak to a doctor
- Second medical opinions - get a second opinion from an expert in your illness
- Personal nurses - experienced nurses can offer support for long-term physical and mental illness, trauma, bereavement, and disability
- Advice from nutritionists - receive tailored meal plans, suited to your food preferences, goals, and tailored around your habits
- Fitness plans - a team of professional coaches can create tailored four or eight-week plans, designed to help you reach your goals
Can you have both critical illness cover and income protection?
Yes, you can have both policies!
Critical illness cover is a type of policy that can financially protect you against becoming critically ill. Often confused with income protection insurance, these policies mostly differ in the way they pay out.
Whilst critical illness cover pays out a lump sum, if you face a diagnosis of a defined critical illness, income protection insurance will pay out monthly bursts of cash which can act like a regular income, if the worst were to happen.
If it fits within your affordability, having both income protection and critical illness cover in place could never be a bad thing - you’ll get the best of both worlds.
Is income protection insurance right for me?
There are so many reasons why income protection insurance might be the right choice for you. One of the biggest perks of having this cover is the peace of mind you can get.
If you're in full-time employment and don't have a substantial savings buffer, this kind of insurance can be a game-changer. It can help you maintain your current lifestyle should you be unable to work.
Why seek advice?
Without the right cover in place, your loved ones may find themselves struggling financially, if you weren’t able to work due to illness or injury.
Finding the right cover can feel confusing, especially if you don’t have someone in your corner. Which is why seeking advice from specialists is important. At Caspian Insurance, our team of UK-based experts are here to look at your circumstances and assess what cover is right for you.
What we do
Our team of life insurance experts are on hand to help you find the right cover. Whether it’s critical illness cover, life insurance, mortgage protection, or income protection - we can help.
With over 200 years combined experience in the life insurance sector, we know a thing or two about finding people the right cover. Get in touch and we can help you find the right cover today!
*ONS
**Excludes claims received for 12 month and 2 year limited benefit income protection policies
***Correct amount as of August 2023
****Free benefits are not contractual and may be removed at anytime
