PARENTS ARE MORE LIKELY TO INSURE THEIR POSSESSIONS THAN THEIR HEALTH
Whilst 75% of UK families have home contents insurance, only 13% have income protection insurance for themselves or their partner.
Yet the data gathered in a recent survey reveals that 43% of parents are concerned that they or a member of their family could develop a serious illness.
More than one in four UK families say they have experienced a loss of income due to ill-health, serious illness or death of a long-term partner. Events like these can cause severe financial problems that can be difficult to overcome.
WHAT IS INCOME PROTECTION?
Income Protection is a policy that pays out if you or a family member cannot work due to injury or illness. Many employers only cover you for this for one year under Statutory Sick Pay. Therefore, after this year, you’re on your own. Many of us have private medical insurance and payment protection insurance, but every working adult should consider Income Protection.
HOW TO BE FINANCIALLY MORE RESILIENT
Being a parent brings huge financial responsibility, so it can really pay to have a plan in place that would provide protection if the family experienced one of life’s unexpected and unwanted events.
Coping with a long-term illness or injury can be stressful enough without the added pressure of money worries. Taking out an income protection plan will mean that there are funds available when they are needed most.
These policies pay out if you’re not able to work and earn money due to illness or injury and, in some cases, forced unemployment. They provide valuable protection for breadwinners, the self-employed and employees who receive limited or no sick pay from their employers.
The maximum amount you can claim is usually your net monthly earnings after tax, minus any state benefits you may receive. This could be around 65% of your gross earnings and is usually tax-free. Policies pay out after a deferred period, typically between four and 52 weeks, and can continue until you return to work or the policy term comes to an end.
There’s a wide range of policies and benefits available; we offer advice that will help you make the right choice for your family circumstances.
For help and guidance in this complex area please contact Paul Clifford independent financial adviser at Clifford Osborne without cost or obligation.
Once you’ve made the decision to take out family income protection cover, it’s important to get protected sooner rather than later. We will consider your individual needs and suggest a provider that meets your needs, objectives and budget. Consider a provider who can offer trusts at no additional cost and we will explain the advantages to you.