Could You Still Pay the Bills If You Were Off Work?
Most people don’t plan for time off work, but it can happen. Illness and injury can affect anyone, and the financial impact often arrives quickly. Income protection insurance is one way to help keep your finances steady when your health takes a hit.
1. What income protection actually does
Income protection pays a monthly amount if you’re too unwell to work. It usually covers a percentage of your income (often between 50% and 65%) until you’re well enough to return or the policy ends. A waiting period applies first, which might range from four weeks to several months.
2. Why it’s worth thinking about
Many people assume their employer would cover them if they were off sick, but sick pay often runs out quickly. If you’re self-employed or have irregular income, the risk can be even greater. Without something in place, a stretch of missed work could put real pressure on your household finances.
3. What the policy typically covers
It applies to physical and mental health conditions that prevent you from doing your job. This could include long-term illness, injury, or ongoing treatment. Income protection does not cover redundancy or voluntary career changes.
4. How much cover might be right for you
You can usually insure enough to cover essential costs like your mortgage, rent, food, and bills. The more cover you choose, the higher the monthly premium. Some people prefer to keep it lean to manage the cost while still offering peace of mind.
5. Things to consider before choosing a policy
Each policy has a “deferred period,” which is how long you wait before it starts paying out. Some cover your exact job, while others pay only if you can’t do any work at all. It’s also worth deciding how long you’d want payments to continue, such as two years or until retirement age.
Final Thought
If time off work would leave a serious gap in your finances, income protection might be worth exploring. It won’t suit everyone, but for many families, it can offer reassurance and breathing room when life is interrupted. If you’d like help thinking it through, I’m happy to guide you.
