We work hard to provide for ourselves and our families and enjoy spending our monthly earnings on holidays and leisure – as well as the more mundane (but essential) things like bills and mortgage payments of course. So you’d think we’d place huge importance on protecting an asset as valuable as our income.
According to research from Zurich, however, this is sadly not the case. In fact, only 20% of the people surveyed had protected themselves against a loss of earnings in the event of illness or disability.
Risk versus reality
Perhaps more surprisingly, 43% said the chances of them becoming ill or disabled and unable to work were extremely unlikely – even though a similar number (42%) had already experienced a loss of income for this very reason. This apparent discrepancy between perception and reality is particularly worrying as a third of people believe they don’t have enough savings to cover expenses for more than one month.
Protect your greatest asset
Income Protection pays out a regular replacement income if you are unable to work due to an accident or illness or, with certain policies, unemployment. For a monthly premium that can be adjusted to suit your budget, this valuable insurance could keep the roof over your head while you are unable to work. Even if you have Income Protection insurance already in place, it’s still worthwhile reviewing your current cover levels. Personal circumstances can change regularly so it’s important to ensure your level of cover remains appropriate.
Most of us don’t think twice when it comes to protecting our vehicles or treasured possessions, and yet it’s our income that enables us to enjoy these luxuries.