We often insure things like …
- Mobile phones
- Pets
- Holidays
- Car & Home
But not the income that pays for it all!
What is Income Protection
How far would you get on £99.35?
If you became too ill to work
You might be surprised to find that Statutory Sick Pay is only £99.351 a week. Enough to fill up the car maybe, but how far through the week would you get?
What might the state provide?
- If you are employed, you may be eligible for Statutory Sick Pay (SSP) which is just £99.351 a week and is only paid for up to 28 weeks – although your employer may pay you more than this.
- If you are self-employed, you are not eligible for SSP, but may be eligible for Employment and Support Allowance (ESA) which is up to only £77.001 a week if you are over 25 years old.
Neither are a lot of money when you consider the average household family spend on food alone is £63.702 a week.
Some employers will pay full pay for a short period e.g., 1-3 months, but the average duration of an income protection claim is 6 years 11 months3.
A common misconception is that these policies do not “pay-out”, however a leading providers’ statistic showed 93%4 of income protection claims were paid-out in 2020.
Whether you are renting or a homeowner, income protection insurance can be flexible and affordable to match your needs. Talk to us about how we can help.
Sources: 1 www.gov.uk, January 2023. 2 www.ons.gov.uk, March 2021. Please note that state benefits are changing, depending on where you live in the UK you may be entitled to different benefits – visit www.gov.uk for more information. 3 Aviva Individual protection claims report 2021. 4 L&G Claims 2020.