How did you preserve your family’s income during the last harsh recession? If you resorted to hiding money in mattresses, fair enough. But with this recession due to be longer and tougher, what kind of income protection do you have for your family right now?
You might be surprised at just how many people do not have an adequate amount of insurance to protect their loved ones during times of need. The commonest way that need arises is if you are unable to work through accident, sickness or redundancy. Protection against these circumstances can be provided by taking out an income protection policy. Whether you need just accident and sickness insurance, or accident and sickness plus redundancy cover, the result is the same: helping you make it through when times get tough.
According to the Council of Mortgage Lenders, the number of home repossessions rose by a third in the first half of the year. So how will you protect yourself if you are unable to earn a living? In addition to the mortgage troubles the Bank of England has indicated that it will possibly start to raise interest rates by the end of the year. People on tracker mortgages could see household bills rise. Could your family finances survive for 3 months if you lost your job?
Not everybody takes out life insurance, even though it’s an extremely important thing to have to protect your loved ones, because dying is just not something that people think about on a daily basis. However, losing a job or becoming ill seem to have more of an urgent likelihood of happening. This is why more people go for income protection than for life insurance. However, the number of people that have this protection is still too low especially in light of the devastating recession we have been living through.
How will you cover not just your mortgage but any other debts in your name? Worse yet, how will you even be able to afford your basic needs like food and clothing? In most cases, the maximum help you will get from an employer when you are ill or injured is 13 weeks of wages. After that time is up, if you are still unable to work then you will find that you are in dire need of income protection. Just do not let it wait that long. Get your protection before it is too late to do anything about it.
