June 2023
Protect and Serve
In 2021 more than 150 million working days were lost in the UK due to sickness but research has found only 6% of adults have an Income Protection plan.
What is income Protection?
Income Protection is designed to cover a percentage of your income if you are off work due to sickness or an accident. It can be paid for a limited period or all the way to your retirement.
Government employees have an excellent scheme which normally means that in the event of an illness they receive six months full pay, followed by six months half pay, and then a discretionary period which could also mean an early retirement.
Is it individual or company cover?
Some companies, like mine, have a scheme in place to protect staff incomes.
Whilst for others it is up to individuals to arrange plans for themselves if their company doesn’t offer this as a benefit.
If it is an included benefit, most company schemes will pay for a period of up to two years, which for many is sufficient coverage for accident/illness recovery.
Why does it matter?
Unfortunately, within our company we have had two team members diagnosed with cancer but thankfully both had cover in place, so received income throughout the full time that they were off.
Money is tight for most people given inflation and increasing interest rates but imagine how much worse it would be if you were hit with long term sickness or an accident that meant that you lost your income or even possibly your job…
Increased pay outs of late, due to long-term effects of Covid has proven the importance of having an Income Protection plan.
At Beacon we have found our Employee Benefits department has been receiving more requests for this type of benefit by small to medium sized companies who are recognising the importance of ensuring financial security for their staff.
We never know what’s round the corner, so whilst individuals need to plan for pensions and investments, they also need to plan for the unexpected.
Having cover is always recommended, like a lifebuoy it will protect you and serves to keep you afloat.
If you are interested in reviewing your protection options, please call us on 01480 869466 for a free initial, no obligation chat.
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