What happens if I can’t work because of illness?
Many people assume it won’t happen to them. But the reality is different. According to the UK government, 8.7 million people live with health conditions that limit their ability to work. Strikingly, one in four of those out of work due to ill health are under 35.
Your income underpins almost everything: paying the bills, supporting your family, and planning for the future. So, what would happen if you were unable to work for a prolonged period?
Can you rely on sick pay or savings?
Some employers provide sick pay, but it is often limited and sometimes at the employer’s discretion. It’s important to check your contract so you know exactly what you could expect.
If your income stopped tomorrow, how long could you rely on savings? Would you use money earmarked for retirement, a house deposit or a holiday to cover everyday essentials?
Government benefits can provide some support, but they are usually means-tested, short term and unlikely to replace your full income.
Why income protection matters
Life carries on, even if you’re unwell. Mortgage or rent still needs to be paid. Children still need school uniforms. Food still needs to be on the table. Without income, the financial pressure can build quickly.
That’s why many people choose income protection insurance. Just as we insure our homes, cars and phones, we can insure our income too.
An income protection policy pays you a regular income if you can’t work due to illness or injury. Typically, cover is available for up to 60% of your salary. Policies can be tailored to fit your circumstances, for example, covering you until retirement.
To put it in perspective, a 30-year-old non-smoker could secure cover of £3,000 per month to age 67 for as little as £22.94 per month (subject to medical underwriting). That could mean decades of financial security if illness prevented a return to work.
What to consider
When looking at policies, it’s important to understand:
• whether you’re covered for your own occupation or any occupation
• how long the benefit will last
Having a medical condition doesn’t necessarily stop you from getting cover. Insurers can often tailor policies, for example by applying exclusions or adjusting the premium.
How Tees can help
Our independent financial advisers will help you find the policy that suits you and your family. We’ll look at your existing arrangements including any cover through work and explain clearly if there are gaps you should be aware of.
If you’re a business owner, we can also explore group schemes to protect your employees.
Planning ahead gives you peace of mind. If illness strikes, you’ll know that you and your family are financially protected.
This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Some information quoted was obtained from external sources we consider to be reliable. All information is correct at the time of writing.
Tees is a trading name of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered number 211314.
Tees Financial Limited is registered in England and Wales. Registered number 4342506.
