We are currently facing a second wave of Coronavirus throughout the nation and for those of us who received letters in March being told to shield, the new tier system has left a lot of uncertainty.
The latest guidance for those in the ‘clinically extremely vulnerable group’ gives no guarantee of financial support, even in the areas of highest risk. Although the government is advising people to ‘work from home where possible’ this isn’t achievable for a vast majority of the population. This inevitably forces people to choose between protecting their homes, livelihoods, or their own health.
People in this category along with many charities are calling on the government to deliver adequate support packages. With nothing in place for the vulnerable, it is affecting not just their physical health but mental health as the pressures caused by the pandemic are becoming overwhelming. It is now alarmingly clear that the government is not acting on the outcry from the public to provide financial support for those most vulnerable.
Family members of the most vulnerable can help provide some reassurance by putting income protection in place for if they were ill themselves and could no longer work. This extra source of protection could help provide financial reassurance.
What is Income Protection?
Income Protection Insurance is designed to pay up to 70% of a working individual’s annual pre-tax income as a tax-free monthly benefit should they be off work due to illness or injury.
How can this provide financial security?
If the worst-case scenario happened of being unwell and unable to work, having IP in place would relieve any financial pressure on you and your loved ones. You would have a guaranteed income and could prioritise getting better rather than worrying about financial ties.
What Types Of Income Protection Cover Are Available?
When choosing an Income Protection policy that is right for you, you should decide if you want the long or short term.
Long-term – Most long-term Income Protection covers will cover you until you return to work, retire, or pass away.
Short term – Unlike long-term cover, short-term Income Protection policies are limited to a set time period.
guaranteed policy – this provides you with a fixed monthly premium.