Why You Need Income Protection in 2023

The UK is currently facing stagnated economic growth and high levels of inflation. This follows supply-chain issues, the war in Ukraine, and the economic difficulties faced by businesses during the height of the COVID virus and lockdowns. Unfortunately, UK households and businesses will be facing financial hardship for several years due to this, but it will be particularly difficult in 2023. It’s not a time for taking substantial financial risks; instead, it’s time for working towards financial stability. Income protection will help you achieve that.

What is Income Protection?

Income protection pays your monthly income – usually between 50-65% - when you have experienced an accident or illness that puts you out of work. It’s different from statutory sick pay, which only lasts for a set amount of time. Instead, income protection covers you for the entire duration of your being out of work, whether for three months, three years, or until you retire.

There is often a delayed period between being out of work and receiving income protection payments. You’ll receive statutory sick pay from your employer during this time, and you can also seek government help.

Why is it Even More Essential in 2023?

The UK financial crisis is only continuing in 2023 after the country experienced inflation peaks in 2022. It affects everyone. With soaring energy prices and expensive food prices in shops, everyone is feeling the effects and are looking for ways to get by.

Even in a typical financial situation, having income protection makes sense, as it means you are fully financially protected if you get ill or injured. However, it makes even more sense now. If you get into an accident or become too sick to work, you can see on the Gov.UK website that there is some financial support available. However, this is for temporary cover, while you want the reassurance of regular monthly payments that mimic your income.

What Income Protection Can Do for You

Income protection keeps you financially afloat even when you cannot work. It’s the best kind of insurance for anyone currently in work. Even if you are physically fit and able now, you don’t know what the future holds. If there’s anything that COVID has taught the world, it’s that you can’t always rely on your body to stay physically healthy – sometimes, you need outside help. Income protection provides just that. You can use it to pay your bills, mortgage, food shop, and more when you cannot work.

Is Income Protection Right for You?

Are you the right person for income protection insurance? If you are currently in employment and have no financial plans if you get sick or injured, then the answer is yes – you are the ideal person for income protection. It doesn’t matter if you’re at a higher risk of illness or if you take part in a dangerous sport. As long as you disclose this when applying, you can still receive income protection.

High inflation levels have disturbed the UK’s financial balance, and everyone feels that financial burden. It’s crucial to feel stable during such a difficult period. Invest in income protection, and you protect your finances when you need it the most.