Have you ever wondered how you and your family would cope financially if anything happened to you and you lost your main source of income?
If this has never occurred to you, you should try asking yourself how well you would cope if you found yourself unable to work due to some form of critical illness. Whilst the advances in modern medicine may mean that you will eventually make a complete recovery , it may be several months before you would be able to work again, and, depending on your current job you may never be able to return to the same job and earn the same money. Although your physical health may return your financial health (and possibly your home) could be in serious jeopardy.
The same also applies if you are unexpectedly made redundant. Those who have been in the same job for many years may well feel comfortable in the knowledge that they will get a large redundancy payment to tide them over until they find a new job., but it is often these people who have the greatest outgoings to pay for each month. As a result of having been in the same job for a long time they feel secure in their job and many of them will have taken on huge mortgages and possibly other commitments such as school or university fees for their children. And you should also bear in mind that if you have been in the same job for a long time it may be difficult to find a new job paying the same salary as your old work.
Whatever savings you have, are unlikely to last very long. Indeed in the majority of situations they will be swallowed up by the mortgage payments within a few months, not to mention other essential items like power bills, food and travel expenses. Deciding to economise by not going out for a meal very often or by cutting back on luxury items and holidays is not really going to solve the problem if your regular basic expenditure always exceeds your income
Income Insurance can help in situations like this.
It is possible to at least partially protect yourself against such a problem by taking out an Income Insurance policy , which will pay out a monthly benefit if you are unable to work as a result of sickness, accident or involuntary unemployment (redundancy).
If you buy income insurance from a specialist income protection insurance broker it can cost as little as £5 a month per £100 of monthly cover required. Can you afford not to have this peace of mind and protect your family for such a small cost each month?