WHY CONSIDER INCOME PROTECTION?
IT REPLACES PART OF YOUR INCOME
Income protection comes in as a replacement for a part of your income when you can't work because of illness or have become disabled.
WHY INCOME PROTECTION MATTERS?
Illness or injury that stops you from working for a while is a much bigger risk than sudden death. Almost 1M people every year are off work for a month or more as a result of serious sickness or injury*.
THIS CAN HAPPEN TO ANYONE. TO YOU.
*Department for Work and Pensions, February 2014, accessed October 2018.
Client: Mrs. Smith
Age next birthday: 43
Occupation: Accounts Clerk
Pre-tax earnings: $5,000 a year
Outgoings: £1,750 a month
Here's an example of what it might cost to insure 65% of the first £15,000 of Mrs. Smith's £5,000 pre-tax earnings, plus 55% of the remainder. This is based on her age, occupation and that she's a non-smoker. It doesn't take account of her medical history, though, so if she had or still have health problems, the premiums could be higher. Certain conditions could be excluded from her plan or she may be unable to get cover.