Income Insurance

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Income Protection For Accident, Sickness and Unemployment

It is estimated that you are 20 times more likely to be off work for six months because of sickness or injury than you are to die before reaching retirement. Few people question the need for life insurance to protect their dependants if they were to die, but only one working person in ten has any specific long-term financial protection if they are unable to work because of sickness.

Income Protection Insurance

Government figures show that about one in five people report having an illness or disability that limits their activities and about two million people each year claim benefits for long-term sickness or disability. Few people would find it easy to cope with the financial impact of a prolonged illness. So why is this area of financial planning so often neglected? There are three main reasons:

• A mistaken belief that the state and employers will provide. A 1998 survey by Norwich Union Healthcare found that a quarter of the UK workforce believe they would receive their full salary from their employer or be supported by the state if they fell ill.

• A lack of understanding about how you can arrange protection privately. This is not helped by the somewhat obscure name 'permanent health insurance' often given to the main tool for protecting your income.

• The relatively high cost of this form of protection.