Whilst 75% of UK families have home contents insurance, only 13% have income protection insurance for themselves or their partner.
Yet the data gathered in a recent survey1 reveals that 43% of parents are concerned that they or a member of their family could develop a serious illness. More than one in four UK families say they have experienced a loss of income due to ill-health, serious illness or death of a long-term partner. Events like these can cause severe financial problems that can be difficult to overcome.
HOW TO BE FINANCIALLY MORE RESILIENT
Being a parent brings huge financial responsibility, so it can really pay to have a plan in place that would provide protection if the family experienced one of life’s unexpected and unwanted events.
Coping with a long-term illness or injury can be stressful enough without the added pressure of money worries. Taking out an income protection plan will mean that there are funds available when they are needed most.
These policies pay out if you’re not able to work and earn money due to illness or injury and, in some cases, forced unemployment. They provide valuable protection for breadwinners, the self-employed and employees who receive limited or no sick pay from their employers.
The maximum amount you can claim is usually your net monthly earnings after tax, minus any state benefits you may receive. This could be around 65% of your gross earnings and is usually tax-free. Policies pay out after a deferred period, typically between four and 52 weeks, and can continue until you return to work or the policy term comes to an end.
There’s a wide range of policies and benefits available; we offer advice that will help you make the right choice for your family circumstances.
1 Aviva, 2017
The information within the article is for information purposes only and does not constitute individual advice.