Income protection can offer short term breathing space or income all the way to retirement age, as our Head of Insurance James Jones explains

Across the UK, the second wave of Covid-19 has placed the livelihoods of tens of thousands of people under threat, whether that be because they work in industries worst affected by the pandemic, such as hospitality, or because they have contracted the virus and must fight the symptoms.

Many thousands continue to suffer from “long Covid”, which includes breathlessness, muscle pain and neurological problems, long after they first had the virus, the health secretary Matt Hancock said on Monday 16th November. As a result, people that never thought they would have concern for their ability to work are having to consider the prospect.

All this means income protection is growing in importance, which effectively acts as a replacement of sick pay benefits. Consultants, contractors and small business owners – any body for whom one or two months off work will hit their bottom line, can insure themselves against ill-health for a fraction of their monthly income.

We generally advise ensuring plans are in place while you’re still in good health, and plans vary depending on your needs, whether it be short term breathing space or income all the way to retirement age.

The amount you would be eligible for is based on your gross annual income. Providers are now able to fix that regardless of fluctuations in income, such as due to furlough or similar circumstances.

If you’re interested in discussing income protection with our specialist team, please get in touch for peace of mind and to understand your options.