From possessions to homes to holidays, many of us have various insurance plans in place. However, while many people make sure their belongings are properly insured, they often neglect the income that funds their belongings.
It is important to consider the value that your monthly salary has on both yourself and your family. Are you the main breadwinner? Does your partner have sufficient income to cover all of your outgoings if you were unable to work?
Have you considered what would happen if you were ill and unable to work for several months?
Will my employer pay me if I am off work ill?
You should look into your employer sick pay scheme as it is different for each employer. If your employer offers a sick pay scheme it may only cover you for a few weeks. Statutory sick pay is only £109.40 per week and is only paid for 28 weeks. You need to consider if you could cover all of your bills with this amount and what would happen if you were off work for longer than 28 weeks.
What cover do I need?
When it comes to personal insurance policies, often the focus is on life cover that will repay the mortgage.
Some people also take out critical illness cover, however this only offers cover in the event of life-threatening illnesses such as cancer. However, the reality is that you are more likely to be off work ill for an extended period for non-life-threatening conditions such as stress, back pain or for an operation.
How could I benefit from income protection?
Income protection policies pay you an income if sickness or an accident means you are unable to work. You can select the amount of income you will require to make sure that you can cover all of your essential outgoings. You can also choose the period of time that you want to receive the income.
The cost of income protection is higher than critical illness cover. However, you can reduce this by choosing to receive a lower amount of income than you might receive through your salary, or you could opt to only receive the income for a year or two as opposed to a policy that pays the income until you retire.
Thera are many different options when it comes to an income protection policy, so it is important to seek financial advice to make sure that the policy you choose is appropriate for your individual circumstances.
Book a meeting now to discuss your options for income protection
The value of financial advice
You can buy protection policies directly from an insurance company. However, a financial adviser at Four Wealth Management could add value to you. The adviser can look into what benefits you receive through your employer and work out which protection policies will be most suitable for your own circumstances and to cover your family.
Book a meeting now or call us on 0117 973 0500.
Book a no-obligation meeting with a financial adviser at Four Wealth Management to review your existing pensions and discuss your options to protection your retirement from inflation.
