We’d all like to think that we’re ready for what’s to come. Maybe we have a great pension, our homes and cars are fully insured, and we’ve saved a sizeable nest egg. We might even have full life insurance to protect our families in case something bad happens.

But what would you do if you were suddenly sick and couldn’t work for a while? Could you pay your bills or keep up with the costs of living?

We’re not talking about being out of work because you lost your job or taking a sabbatical.

We’re talking about what you would do if you got sick or hurt and had to miss work.

You might think that your employer will look after you, but that’s not always the case. Some employers offer better sick pay plans that guarantee full, or half pay for a certain amount of time. Others may have to depend on statutory sick pay, which is limited to £99.35 per week for a maximum of 28 weeks. If you work for yourself, you won’t be able to get any sick pay.

Even if you have savings, being out of work for a long time could cause them to run out quickly.

But if you have income protection insurance, you might not have to worry about your money if something bad happens.

Let’s take a closer look at what income protection insurance is and how it works.

What is income protection insurance?

If you can’t work because of a health problem, a good income protection insurance policy will give you a steady income. This money is paid out tax-free. Depending on your policy, your insurance will either cover you until you are healthy enough to go back to work, or until you retire.

Most income protection insurance policies will pay out a percentage of your salary – often 50-70%. This means that you will receive a higher income than relying on statutory sick pay entitlement alone.

You can benefit from both income protection and company or statutory sick pay

There are no ‘either/or’ scenarios here.

If you have taken out income protection insurance, you will still be able to get sick pay from your company or from the government.

In fact, one reason our customers trust us is that we know how to find insurance policies that pay out when you need them to.

For example, let’s say your employer gives you full pay for three months, but then you have to go back to getting statutory sick pay. We can find you a policy with a three-month waiting period, so it will start when your enhanced sick pay package is set to end. This means you don’t have to worry about your income going down a lot.

You can instead focus on your health and your recovery.

Who needs income protection insurance?

Making sure that our customers have the right insurance policies for their needs is a big part of what we do. We’ll take the time to learn about you and your family so that we can make sure you have the right insurance, like life insurance, critical illness insurance, and income protection.

Not everyone may need income protection. If your employer is generous and has a good sick pay policy, you might not need insurance. But if you’re self-employed and have a manual job, could you handle it if you broke your wrist or ankle and had to take time off?

Income protection seems like a simple calculation to us.

If you got sick and had to stop working, would your employer’s sick pay policy be enough to cover your current living costs?

 If the answer is no, you should think about getting a policy to protect your income.

When we talk to our customers, we often point out that income protection isn’t just about being able to pay your rent or mortgage. It’s about having enough money to pay your phone bill, utility bills, and other costs of living. Even if you decide to pay for private physiotherapy to help you get better, the costs can add up quickly and use up your savings.

Income protection insurance covers mental and physical health

Often people assume that income protection will only cover you for physical health issues. But insurers realise that mental health can be just as debilitating as physical health. This means that your income protection insurance can be used if you are signed off work due to stress related illnesses or mental health issues.

However, most insurers will not cover you if you already have a known health problem.

If you are looking for an income protection insurance policy, request a call back from one of our trained insurance specialists. We can discuss your medical history and find a policy that suits you and your family’s needs.

[Book a call with one of our advisors]

How much does income protection cost?

As with any insurance policy, the cost will depend on a number of things, such as your age, health history, and the amount of coverage you want. There is no insurance plan that fits everyone.

People trust us because we want to help them find the best insurance policy.

Our approach is to help you find an insurance policy that fits your budget and pays out enough to cover your costs.

When you speak to a member of our team, we’ll have to ask you a few questions to find the right policy. Typically, we’ll need to know the following:

• Your age
• Your height
• Your weight
• Your current occupation
• What percentage of income you need to be covered
• The type of premium you are looking for. Guaranteed premiums mean that your monthly cost will always remain the same. Reviewable premiums mean that the price could rise over time.
• How long until you need your payouts to begin (choosing a longer “deferral period” could lower the monthly premiums)
• The length of the policy
• Your current health including whether you are a smoker
• Any hobbies that could cause an injury (such as skiing or horse riding).

Once we have this information, we can work with our network of UK insurers find the right insurance company for you. Our access to the whole of the market means that we know who to turn to, and we are confident that we can find you a better deal than you could find yourself.

Finding you insurance policies with minimal premiums but maximum cover

Everything we do at The Insurance Surgery is meant to keep you and your loved ones safe.

We all know that money is tight for everyone right now. The rising cost of living could make you think twice about getting a policy to protect your income. But we do what we can to lower your monthly premiums, making your insurance costs affordable and easy to get.

We think buying insurance is about making a smart choice. So, we take the time to tell you how much you could be paying each month and how likely it is that you could get a payout. On our website, we have a lot of case studies that show how life insurance and income protection insurance have helped people like you.

If you still have questions about income protection insurance, why not ask one of our experts to call you? We can answer any questions you have and help you decide if you need income protection insurance.

While you’re waiting, why not look at some of the informative guides on health and life insurance that personal finance guru Martin Lewis has published on his MoneySavingExpert website? Each guide is easy-to-read and offers an independent and balanced explanation of the importance of health and life insurance.

Phone us on 0800 083 2829. Book an appointment with an advisor