Essential Recipes: What is Income Protection?

Your Co.mmerce

This episode of the Your Recipe for Financial Success podcast was published on 13th August 2020. You can listen again by heading to our Episodes page, or on your favourite podcast player.

In this episode, Becky, Emma and Julie introduce the ingredients needed to rustle up a steaming pot of Income Protection.

Episode Highlights

Would you be able to support yourself financially if you were unable to work due to illness or injury? Or, would the statutory sick pay of £95.85 per week for 28 weeks see you through?

No? Well then, you’ll probably want to think about protecting yourself.

Income Protection

  • If you are unable to work due to illness or injury, your income is protected and you will still receive money to support yourself. It will pay out until you are able to return to work, or you retire.
  • You can choose a waiting period before your policy begins to pay out. The longer you are able to support yourself before needing the pay outs, the lower your premiums are likely to be.
  • Income protection is not a one-off lump sum. You can claim more than once on the same policy if necessary.
  • If you are working age and you don’t have savings to fall back on or the state benefits wouldn’t be enough to cover your outgoings, you should seriously consider Income Protection.

Critical Illness Cover

  • This pays out as a single lump sum payment. It means that you will have to make the money last until you are able to go back to work. If you suffer an injury which means you are unable to work again, this kind of cover may not be suitable. Especially for younger workers.

 

We hope you are full up on everything you need to know about income protection. If it’s left you hungry for more, check out our other podcasts on our episodes page. Don’t forget about our Facebook page too where you can ask questions and join in discussions about all of our topics!

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