Your Income (Income Protection)
Protect the Goose that lays the Golden Eggs – You & Your Income!
People protect everything except themselves, their lifestyle & the income that pays for it
For most families, the income they generate supports their entire lifestyle and their home.
From mobile phones and pets, to cars and even fridges, people protect everything except themselves, their lifestyle and the income that pays for it.
If you don’t insure your income how can you pay for everything else?
It can be tough to cope financially, as the bills don’t stop coming in just because you are ill!
CALL US TODAY TO PROTECT THE LIFESTYLE YOU HAVE WORKED HARD TO CREATE.
How long will your employer pay you?
In our experience, most of our Clients have not looked at their Contract of Employment – they get as far as the Salary and that is about it! Whilst a few employers offer Enhanced Sick Pay, the majority of our Clients find that they have only a few months of cover, or that they will have to rely on their savings and Statutory Sick Pay only.
How long would your savings last?
The Money Advice Service (MAS) recommends that people have 90 days’ worth of outgoings in savings to be considered financially resilient. However, only 44% of the UK population believes they have this small buffer*. And 90 days is not a long period of time to recover from an illness.
THE BIG QUESTION
What will happen to your home and family when your savings run out?
Could I rely on the State?+
There is “Support for Mortgage Interest”, but did you know that this is only available if you have been continuously off work for a period of 39 weeks?
Did you also know that this is now considered a LOAN? A loan which you will need to repay, with interest, when you sell the property?
And did you know that this LOAN will ONLY pay the INTEREST and NOT the full monthly payment of your mortgage, on a mortgage up to a maximum of £200,000?
So you would, in reality, need 273 days of savings to cover your mortgage and outgoings to be financially resilient, rather than the 90 days MAS recommends!
Finally, there is no guarantee that your Lender will wait for payment for 39 weeks, or would allow you to change your repayment mortgage to an interest only mortgage.
It is also possible that the Lender’s method of recording this arrangement on your Credit Report would cause you problems with obtaining mortgage finance long term.
You may also be eligible for Statutory Sick Pay but this is only £94.25 a week+ for up to 28 weeks.
Even if this did cover your mortgage and outgoings, what will you do for the gap between 28 weeks and 39 weeks when the Support for Mortgage Interest kicks in?
FROM GOOSE TO OSTRICH?
Please do not stick your head in the sand. We know that these figures are frightening, but we also know how important it is for you to carefully consider how you would cope if your income ceased.
THE SOLUTION COULD BE AN INCOME PROTECTION POLICY
This is a serious policy designed to pay out if you are unable to do your job due to Accident or Illness, and it would pay out after a tailored deferred period^, until you either returned to work, died, or the policy end age was reached.
Do not confuse this with policies which only pay out for a year or two and have premiums which can be increased at any time.
You are insuring your most valuable asset – which is you as an Income Generating Machine (the producer of the Golden Eggs!).
And we think this is so important that we do not charge a fee for this work. **
*Statistics from LV= Income Roulette Report 2018
+https://www.gov.uk/employers-sick-pay as at 01/07/2019
^Deferred period means that it would start to pay out after 3, 6, 9 or 12 months depending on your needs
** we may be paid commission from the insurance company