Protect your greatest financial asset

When most of us think about our greatest financial asset, we’re likely to think about our house, or if we rent our home, perhaps our car instead. And whilst we have insurance to protect both of these, we often overlook what is likely to be our true greatest financial asset - our ability to earn an income.

Your million-pound asset

At the current minimum wage, over a 45-year full time working career you will earn over a million pounds (assuming you work 40 hours per week).

If you are further along in your career, and earn the average UK income of £37,430 from the age of 30 to 65, you will earn over 1.3 million pounds in this time. For many of us, this far exceeds the value of any other assets we own, and yet many of us fail to take steps to protect this income.

This isn’t just important for those with a mortgage to repay, but also for those who rent and therefore also have a monthly commitment to stay in their property. This is before even considering other expenditure such as utility bills and the weekly food shop.

Protect your income with Income Protection Insurance

Income Protection Insurance is designed to replace a portion of your salary or wages if you’re temporarily or permanently unable to work due to illness or injury, helping you maintain financial stability during periods of incapacity.

Upon making a successful claim, a typical policy will pay 60% to 65% of your pre-tax income. The length of time you have to be off work, along with how long you will receive the monthly benefit can be tailored to your individual requirements. The most comprehensive coverage will generally pay out once you have been unable to work for a month, and will continue to pay you until your policy end date.

By having an Income Protection Insurance policy in place, you give yourself the peace of mind that if you are unable to work you can focus on recovery without constantly worrying about paying your mortgage and other bills. With an income coming in, you won’t have to make drastic cuts to your lifestyle.

Get in touch to discuss your circumstances

When considering Income Protection Insurance, it’s important to get the right advice. Certain conditions may not be covered, such as pre-existing medical conditions or injuries from risky activities (e.g. skydiving) and the cost of premiums will depend on factors like your occupation, age, health, and the level of coverage you choose. By seeking expert advice, you can make sure you are aware of all the options, and ultimately select the right policy for your individual circumstances.

Source: Employee earnings in the UK - Office for National Statistics