We insure our homes, our cars, and our holidays, but what about the one thing that pays for all of it?
Your income is your most valuable asset. Yet for many, it’s the most under-protected. If illness or injury meant you couldn’t work for weeks or months (or even longer), would your financial plan survive the hit? That’s where Income Protection steps in. It’s a key part of making yourself financially bulletproof, providing the support you need when life doesn’t go to plan.
This insurance policy pays you a regular income if illness or injury prevents you from working. Unlike other types of cover, this policy replaces a portion of your salary, typically up to 75%, until you recover and return to work or until the benefit period you choose ends.
There are many benefits to having Income Protection:
- Peace of Mind When Life Happens: Accidents, stress, long-term illness, they don’t schedule themselves. Income Protection ensures that when life throws a curveball, your finances don’t take the hit. You can focus on recovery, not bills. Your rent or mortgage, groceries, childcare, loan repayments, they don’t stop if your income does. Income Protection helps you maintain your lifestyle, so you’re not forced to dip into savings or take on debt.
- A Strong Companion to Other Cover: Income Protection works alongside other insurance, not instead of it. While Specified Illness Cover pays a lump sum for certain diagnoses, Income Protection pays a monthly income for any condition that keeps you from working. It adds a crucial layer of support alongside life and health insurance.
- Covers More Than You Think: Income Protection isn’t limited to catastrophic events. It’s there for both short and long term absences from common issues like back pain, mental health issues, or burnout.
- Flexible and Customisable: You can tailor the policy to fit your needs, choose your waiting period (how soon payments begin), benefit period, and even add extras like cost of living increases. The policy works for employees, the self-employed, and business owners alike.
- Tax Efficiency: One of the best-kept secrets and a key benefit is that a portion of premiums paid are tax deductible for PAYE workers, as well as a deductible business expense for Company Directors. This benefit tends to be overlooked but this really makes Income Protection a lot more affordable than many realise.
Statistics show that you’re more likely to be off work due to illness or injury than to die before retirement. Yet far more people have Life Insurance than Income Protection. It’s a blind spot in many financial plans, and one that can have lasting consequences.
Building wealth is only one side of the coin, protecting it is just as important. Income Protection provides a vital financial safety net, keeping your plans, goals, and peace of mind secure no matter what.
At Chartered Capital, we help clients protect what matters most. If you’d like to explore how Income Protection can fit into your financial future, we’re here to help.
Book a Financial Planning Review with Chartered Capital and take the first step toward making your finances bulletproof.
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