Understanding Income Protection

We’ve spoken about many of the different types of protection, including Critical Illness Cover, but what about cover for those smaller incidents?

If you’re a trades person, for example, what would happen if you broke your arm and were unable to work?

For those who are self-employed that may mean that there was no income for that period. For the employed, it would depend entirely on the Sick Pay Policy of the employer, with some employers only paying the Statutory Sick Pay allowance of £96.35 per week, significantly less than many people’s wages.

Apart from the short term issues, some accidents or illnesses could leave you unable to ever work again – how would that impact upon your finances?


Only 1 in 10 of people surveyed by L&G saw themselves as their largest financial asset, but half said that loosing their income would be one of their biggest worries if they were affected by an illness or injury.

Research into Financial Wellbeing has shown that many people actually don’t have the savings to rely upon if they were to be off work due to injury or illness, with many saying that they’d have to rely on their friends and family or the State to support them. However, with the changing availability of state benefits, can these options really be relied upon and would you want to rely upon friends and family indefinitely, even if they could assist?


This is where Income Protection can come in. There are many Income Protection policies available and benefits may vary between providers. However, they all share the common aim of providing a replacement regular income if you find yourself unable to work due to illness or injury. Even if off work, the charges for gas, electricity, food and possibly rent will still need to be met somehow. For many of us though, the biggest bill may be the mortgage payment and failing to keep up payments on your mortgage could ultimately lead to your home being repossessed. Even a single missed monthly mortgage payment could impact your future finances for years to come.


Your adviser will be able to both calculate the amount of cover and look at the type of cover you will need, to make sure that you are financially protected against the things that are likely to happen in life.

To book an appointment to discuss your Income Protection needs, contact our team on 01522 540777 or email us: mail@whitemortgagesltd.co.uk




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