Going into 2023, the UK is on the verge of a recession, with inflation affecting everyone. Families are struggling to stock their food cupboards and pay off their bills. Businesses are particularly affected, with many closing down as they can’t pay their increasingly high energy bills.
It’s hard to stay financially afloat during this time. If you think it is bad now, imagine what it would be like if you became too sick or injured to work. In this situation, you’d need finances to fall back on, which is what income protection provides. Income protection is a type of insurance that pays 50-65% of your income when you get into an accident or become too sick to work, paying right up until retirement if necessary. Here are five signs you need it right now.
1: Your Income Does Not Come from the Government
If your income doesn’t come from the government (for example, through universal credit), then the chances are your income comes from a salary, which needs protection. Don’t assume that you’ll stay fit and healthy forever just because you are now. In the unfortunate situation where you get into an accident or become ill for a long time, you want the reassurance that you still receive at least some of your monthly wages, and that’s what income protection provides.
2: You Do Not Have a Lot of Savings
2023 would be a poor time to discover that you can only rely on government payments. If you don’t have a lot of savings – enough to live on for an extended period – you need another backup. Even with a good amount of savings, income protection still makes sense, as it can supplement your income for many years while you can’t work.
3: There’s a Chance You’ll Get Sick in the Future
You can never be too careful. After the COVID pandemic, more people are aware of the limits of their bodies. You never know when your body will no longer be able to work, so it’s essential to protect your finances in case the worst happens. That way, you’ll still be able to pay your mortgage, rent payments, and bills. If you already have an illness, you can still get protection insurance; you just need to disclose it, and it might affect how much you pay each month.
4: You Have No One to Rely on Financially
You might not need to rely on anyone now, but you might if you become sick or injured. Unless you have someone you can 100% financially rely on in this situation, you need income protection to stay financially independent. Go to The Balance Money if you want to learn more about becoming financially independent no matter your circumstances.
5: You Want to Be Fully Financially Protected
If you want to be fully financially protected (and who doesn’t?), you need income protection. If there is one insurance that you invest in, let it be that. It protects you during the worst of times, and after experiencing such financial hardship in 2023 – along with most other people around the globe – you know just how important it is to be financially secure during times of struggle.