Help keep your finances healthy if you can't work because of illness or injury
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What is Income Protection and why is it important?
Right now is a challenging time for many families. As the cost of living continues to rise, many are struggling to pay their bills. In this environment, your income is your most important asset. But what if something happened to you that meant you were unable to work? That’s where income protection insurance helps give peace of mind.
UK inflation rose to 3.5% in the 12 months to April 2025, up from 2.6% in March with the main price increases coming from housing and household services, transport, and recreation and culture.* As we face into this unsettled period, where global events continue to impact our daily lives, it’s important to have some stability. A steady income offers that level of stability. Without a regular salary, it becomes harder to budget and manage your finances.
What is income protection insurance?
Income protection insurance is a form of insurance that protects your income in the event you become ill or get injured and cannot work. While most employees will have a certain amount of sick pay after a qualifying period, if you have a long-term illnesses or injury, your income could be at risk after your employer stops paying this.
Like most insurance, income protection safeguards you against the unexpected. It replaces part of your salary if you are unable to work and typically pays you up to 70% of your annual income after a defined timescale, ranging from 1 month to 12 months after a claim is accepted.** In what is an extremely uncertain and challenging time, it could be a lifeline for some families.
What are the benefits of income protection insurance?
- Peace of mind: you have the assurance that your income is protected if your claim is accepted and you are unable to work due to illness or injury
- Financial continuity: with up to 70% of your salary coming into your account as regular payments you can still pay your bills and help towards meeting other financial commitments. This pays out until a fixed age, death or until you return to work, depending on the cover put in place
- Reduces stress and worry: you can focus on your health instead of worrying about loss of salary
- Added life cover: some income protection policies include a death benefit, which can provide a lump sum in the event of your death
- Payouts aren’t subject to tax: if your claim is paid out, the income paid to you is tax free
Money worries can be stressful. And stress can have a real impact on your health. When you’re dealing with a long-term illness or injury, this added stress could be debilitating. Income protection insurance can help to reduce that financial worry. With a replacement income, you can continue to pay your bills and manage your finances.
If you’re interested in finding out more about how to protect your income, call us on 0345 355 3242 or request a call back.
Source: *Consumer price inflation, UK: April 2025 | ONS
**If you stop paying your premiums, your cover stops and you get nothing back. Providers only pay out if a successful claim is made. Income protection policies have no cash-in value at any time.
