What is Income Protection?
Posted on 22nd September 2023 at 11:17
Quite simply, its sick pay.
When you are employed, sick pay is often (not always), given for up to X months. After that, you would go onto the current government SSP. This is just over £400 a month. Not amazing really considering the average mortgage payment in the UK is £665 per month.
When self-employed, you just get nothing! No sick pay at all.
So how do we get around this? How do we keep you in the home when you can’t work?
We use the income protection. This insurance cover will start to pay you once your sick pay has run out. It will pay you a large % of your usual monthly pay so that you can keep your bills paid, your family safe, fed, and warm as well as pay the mortgage and stop you going into arrears.
On that note too, it helps to protect your valuable credit score. If you miss a payment, or even just pay late, this could put a huge dampener on your borrowing ability further down the line.
Monthly premiums, paid to the lender are usually very low considering what it can do.
There are some plans that pay for 2/3/5 years, but if you pay a little more per month, you get something even better. It will pay out until you can get back to work OR until you retire!
If you had an injury at 25 and you couldn’t work in the same role again, they would pay you every month until 65! Amazing!
Get in touch to find out how you can protect everything you have worked so hard for.
Austyn Johnson
07500 871 209
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