Protecting Your Income
Scott Robinson of Sabre Financial says “People are often confused about what income protection can do for them that they are over-estimate state support and under-estimate the likelihood of them needing appropriate insurance”.
According to research carried out among more than 2,000 adults by Censuswide, on behalf of Cirencester Friendly, 98.4 per cent of Britons do not know how long long-term income protection is supposed to last.
As a result, nearly 50 per cent said they would rely on the state for aid if they had to give up working due to accident or illness. The figures also suggested 71 per cent could lose up to £300 of their weekly income if they did rely on the state supported statutory sick pay (SSP).
By contrast, survey respondents understood the value of buying protection for their pets - with 21 per cent saying pet insurance was a "must" compared with just 10 per cent who believed income protection was a "must".
The lack of understanding around income protection insurance is shocking and perhaps goes some way to explaining why only 10 per cent of people say they would take out this form of cover.
The government aid is intended as a safety net only – the State’s average long-term support is just over £70 a week; less than one fifth of the average take-home pay in the UK which stands at over £400 a week.
Anyone who suffers the "misfortune" of an extended leave of absence from work could face serious financial hardship if they have not put adequate protection in place.
While people are concerned with insuring their pets and their mobile phones, these findings should serve as a wake-up call; if you are unable to work then paying for either of these might be a luxury you cannot afford.
Get in touch with Scott at Sabre Financial today, on 01548 856444 or email firstname.lastname@example.org to discuss how we can help protect your income.
Sabre Financial is a trading title of Sabre Financial Planning Ltd. Sabre Financial is authorised and regulated by the Financial Conduct Authority.
By Sabre Financial | Monday, October 30, 2017