What's Your Back-Up Plan To Protect Your Income If You Couldn't Work?
Most people don't think about the reality of becoming ill and needing to protect their income if they can't work.
And most of us don't have a back-up plan in place to support us during a long period of sickness.
Research recently released from the independent Think Tank, Demos, has found that it’s the average two income family with children, earning between £16,000 and £50,000 per annum, which is the demographic most at-risk of serious financial hardship if one wage earner is forced to stop working due to long-term illness or disability.
People assume that the state will look after them, yet the support actually available is less than £5,000 a year. For someone on an average income of around £25,000, this would mean a massive 80% reduction in income.
Whilst many of us have life insurance, we are actually three times more likely to fall seriously ill during our working lives than die while in employment.
Yet just 1 in 10 people in the UK have their income protected in the event of a major illness, meaning millions of us are risking serious financial hardship for ourselves and our family if the worst was to happen.
In the following video, we hear from Kate, aged 35, who unexpectedly had to take long term sick leave last year and wasn’t protected, while Jack McGarry, CEO of Income Protection provider Unum, and Nick Cosh, broker at PMI Health Group, look at the implications and discuss what you can do now to protect financially against sudden illness.
Tagged in Money