Why Income Protection Insurance Matters More Than Ever.

The past few years have been anything but smooth. In a short span of time, we’ve faced a wave of economic disruptions, from the COVID-19 pandemic and widespread strikes to a sharp rise in the cost of living.

Today, uncertainty still hangs in the air as the economy is still struggling to fully recover. The lingering effects of the pandemic are still being felt, whether it’s long COVID, stress-related illnesses, or the growing prevalence of chronic physical and mental health conditions.

It is a perfect storm, and one that has more people than ever asking a sobering question: What would I do if I couldn’t work for a few months, or even longer?

Is Income Protection Insurance Worth It?

For many people, income protection insurance has become not just worthwhile, but essential.

As reported by the Keep Britain Working Review in March this year, around 8.7 million people in the UK are living with a health issue that limits their ability to work. That’s a 41 per cent increase over the past decade. Meanwhile, the rising cost of living continues to strain household budgets, and state benefits have failed to keep pace.

If illness or injury left you unable to work, income protection insurance would provide you with a regular income to help cover your essential living expenses. This might include your mortgage, car insurance or rent, utility bills, food, and other everyday costs. 

It gives you financial stability at a time when your focus should be on recovery, not worrying about how to pay next month’s bills.

This is especially important, given the limited state support that has become available. Statutory Sick Pay offers £118.75 for up to 28 weeks, while Universal Credit and other government benefits, such as PIP, can take time to access, leaving many struggling. Eventually, when they are approved, the payments often fall short of covering actual household expenses.

Without a financial buffer or employer sick pay, many people find themselves struggling within weeks of being off work due to illness. However, income protection insurance can fill that gap, giving you a financial safety net you can rely on if you ever experience chronic ill health.

What Does Income Protection Insurance Cover?

Income protection insurance covers a wide range of health conditions that may prevent you from working.  In many cases, these conditions may not qualify for critical illness cover, but they still require an extended time away from work. This can include long-term illnesses, but the conditions covered will depend on your chosen policy and insurer.

Unlike policies that pay out a one-time lump sum, income protection provides ongoing payments that amount to a portion of your gross salary. These payments continue either for a fixed period, such as one or two years, or until you’re well enough to return to work, depending on the type of policy you choose.

The right income protection policy supports your recovery, providing you with time and space to heal without financial pressure. It is not supposed to completely replace a state benefit, such as Universal Credit. 

What Doesn’t Income Protection Cover?

While income protection insurance covers a wide range of illnesses and injuries, it’s important to understand what it doesn’t include. There will be exceptions depending on the policy you opt for. 

For example, you won’t be able to get cover for pre-existing conditions, and the illness or injury would need to have started after you sign up for a policy. Additionally, most income protection policies do not cover self-inflicted injuries and mental health conditions.

It neither covers redundancy or job loss due to company decisions, or if you voluntarily resign from your job. 

How Much Does Income Protection Cost Per Month?

The cost of income protection insurance will vary. Factors such as your age, health, occupation, and lifestyle will be considered to determine the premium and levels of coverage available to you.

When you compare insurance quotes online via our generator, the most important thing to keep in mind is to find the right policy to suit both your needs and budget. 

Some policies will have a deferred period or shorter benefit term for a few months, which can make your premium lower. However, when considering your circumstances, when you may need income protection in the future and the cost of running your household if you were to become too sick to work, the price of a monthly premium is often smaller than the implications risked by not getting covered.

Get Income Payment Protection Insurance at One Sure Online

Life is unpredictable but your income doesn’t have to be. And if you’re ready to explore what cover could look like for you, it only takes a few minutes to get a quote online. It’s a simple, proactive step that could make a world of difference when it matters most.

Get peace of mind that if something unexpected affects your health, your financial future won’t be left in doubt and find a quote via our online income protection comparison page.