Why it pays to insure your income this year!

By Reza, Jan 2021

Insurance

It’s the beginning of the new year and most of us have come up with a list of resolutions, the changes we want to make to our lives. From exercising more, and eating healthier to learning a new language or a new skill. Experience shows that the majority of our resolutions don’t survive to the end of February. At least that’s what’s happened to mine in recent years.

But is it time to put ‘insuring my income’ on our resolution lists? 

Here are 4 reasons you should consider Income Insurance this new year.

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

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

Whilst everyone is affected differently, 1 in 2[3] people will be off work for at least two months during their career.

2. Your employer’s support might be less than you think

Your employer is only required to pay you a Statutory Sick Pay[4] of £95.85 per week, for just over 6 months. Given the average rent is £987[5] per month in the UK, SSP is unlikely to even cover your rent.

Some employers are generous enough to provide sick pay over the SSP level. But they can change their policy at any time and the scheme is not guaranteed to exist when you need it.

3. Government support is low, but also confusing

Yes, it’s true, the government provides some support when are off work. But this is limited, complex and confusing, and not everyone is eligible.

Your eligibility and benefits can be impacted by any savings you have, your partners’ income, and even how severe your illness or injury is. Even if you are eligible, you’re likely to have to change and sacrifice your lifestyle to adapt to your new income levels.

You can check out how much you might be entitled to by using this external calculator: https://benefits-calculator.turn2us.org.uk/AboutYou

4. Income Insurance is affordable and guaranteed

There is nothing more important than looking after yourself, and your family. Being off work is stressful enough without having to worry about paying bills and using your savings.

Income Insurance gives you the peace of mind you need so you can concentrate on your recovery.

You can insure your income from as little as £5 per month.

For example, a healthy 25-year-old office worker could insure £1,000 of their income for just £5.79 a month.

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[1] https://www.cancerresearchuk.org/health-professional/cancer-statistics/risk

[2] https://www.mind.org.uk/information-support/types-of-mental-health-problems/statistics-and-facts-about-mental-health/how-common-are-mental-health-problems/

[3] Based on a typical occupation

[4] https://www.gov.uk/statutory-sick-pay

[5] https://homelet.co.uk/homelet-rental-index