For so much of the world’s population, 2020 has been a year full of unprecedented challenges. This has raised questions about our mental as well as physical well being. We are seeing more and more news stories about how people’s mental health is being affected by this global pandemic. This has been a time when the words “you can’t predict the future” comes to the forefront.
Post-traumatic stress disorder, anxiety, depression, obsessive-compulsive disorder, to name a few mental conditions that have been highlighted in the media.
Just for a moment, think about you and how you personally are affected. Are you constantly feeling anxious or depressed and feel that you would benefit from talking to someone about your issues be it due to bereavement, work, or general life? If you have an income protection policy currently in place; did you know that many insurers provide support for you to contact a helpline for support?
More importantly, did you know that some Income Protection policies payout if you are unable to work due to mental health?
Income Protection is, unfortunately, never in the forefront of people’s mind when discussing their protection needs. Still, it is one of the policies which has the most claims. People often believe that this type of policy is an unnecessary expense; however, it may be the most valuable policy, especially if a loss of income would result in financial hardship. Without an income, paying your mortgage, your rent, your bills and continuing to live the lifestyle that you are so used to – how long could you survive with your savings?
Now more than ever, with so many people affected by different illnesses, such as cancer, heart attack, strokes, mental health, etc. It’s imperative to plan and to self insure! Having a mindset of invincibility and convincing yourself that “it will never happen to me” is merely burying your head in the sand.
We can all name at least a dozen people who have been struck by unexpected illness in their lifetime and suffered physically, mentally and financially. What if this was you? How would you cope with it all? Putting in place an Income Protection to help fill income gaps when you are unable to work due to illness or injury, will help to maintain the outgoings that will not stop if you are unable to work.
It will usually cover a percentage of your salary, and also provide support services to help you get back into work.
Figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.7 billion in protection claims in 2019.
With claims level increasing year on year and eligibility rules for claiming state benefits becoming more rigid! It makes sense to self insure and give yourself the peace of mind should you lose the ability to work through ill health.
Published November 2020.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.