Reasons to insure your income

By Reza, Mar 2020

Insurance

Have you ever considered insuring your income? Probably not. But you’ve thought about insuring your phone, your home, maybe even your dog. Yeah?

What if we told you in 2018 alone, 414,000* people were off work for more than two months due to accident or illness. Have you wondered how you could pay your bills if you lost your income?

You can insure your income against accidents or illnesses. So, if you can’t work, you still get paid. Here are four reasons why you should consider insuring your income.

1. You have more than a 50% chance of being off work!

No one likes to think about it, but accidents happen, and people suffer from illnesses. 1 in 2 people are expected to get cancer** in their lifetime. And 1 in 4 people will experience a mental health*** problem each year!

Whilst everyone is affected differently, 1 in 2**** people will be off work for at least two months during their career.

2. Cover is more affordable than you think.

Many factors can impact the price such as the type of occupation you have, whether you smoke and your age. But you can find cover from as little as £10 per month.

For example, a healthy 25-year-old office worker could insure £1,000 of their income for just £9.36 a month.

The younger you are the cheaper your cover will be. Each year you delay insuring your income, the cost will increase by around 5% - 8%. So best to buy it when you are young.

3. You shouldn’t rely on your employer or government.

Yes, it’s true. Your employer and government can provide support when are off work. But this support is limited, complex and confusing. Good luck trying to work out what you might get from the government, you’ll need a whole other degree for that.

The two main ways you can get support are:

By insuring your income, you will know just how much you get and when.

4. Financial certainty for yourself, and your family – one less thing to worry about.

There is nothing more important than looking after yourself, and your family. Being off work can be stressful and difficult. The last thing you want to worry about is whether you can pay your bills, buy food and enjoy yourself.

Insuring your income can provide you with certainty. Knowing you will have money no matter what happens!