Have you ever considered what you would do, if you suddenly lost your income?
Most people, whether employed or self-employed, rely on a regular income to pay their mortgage, monthly bills and put food on the table, but research proves very few consider how they would manage if they were unable to work due to an accident or long-term illness?
It’s fair to say, many people think that ‘it won’t happen to me.’ – I’ve never had any time off sick, and I don’t intend to start now. Some insurers refer to this as the ‘Superman Syndrome’.
Some people do have access to income from employment in the event they are off work through accident or sickness, with larger employers providing on average 6 months full pay and 6 months half pay, but what about the self-employed, or those that work in a company that can’t afford to provide such generous benefits?
Unfortunately, long-term absence from work is not as uncommon as you might think, around a third of employees know of someone who’s had a long-term absence in the last year. Research suggests that 66% of families would struggle to pay mortgages and bills for longer than 3 months without any regular income. The Self-employed could be particularly vulnerable to lost income, especially where they work alone.
An Income protection plan could help you maintain your lifestyle, or at least pay the main monthly bills and expenses, should an illness or accident keep you from working and earning a monthly income.
An Income Protection plan is designed to provide you with a regular monthly income if you can’t work due to incapacity through illness or injury. A benefit level can be agreed at outset whether this be just enough to cover the monthly mortgage, or whether you need to cover all your bills and expenses. To keep premiums low, a ‘short term’ option exists to limit the maximum payment period of one claim. This type of plan is normally taken out up until retirement.
If you think you need Income Protection contact North West Financial Solutions for help arranging the right plan for you.
About NWFS: North West Financial Solutions Ltd provide independent financial advice to business owners, companies and individuals to help plan for their financial futures. This is delivered by a team of advisors with over 30 years’ experience, using the latest technology and market leading products to deliver the best possible solutions for clients. Based in Blackpool in the North West of England we provide advice and services throughout the UK. In the coming months we will provide commentary on different topics and areas of financial planning.