Four Reasons Every Employee Needs Income Protection Insurance

Insurance is all about preparing for the worst-case scenario. We take out insurance at our office or home insurance so that we’re covered in case of burglary, fire or flooding. We take out car insurance in case of breakdown and because we can’t rely on the behaviour of other drivers. We take out pet insurance because we all know that there are a thousand different health issues that our furry friends can suddenly develop. In short, we buy insurance because we can’t know what the future holds and we can’t predict how other people will act, but we want to be prepared for it.

Over the course of the last year or so, we have seen just how completely an unexpected scenario can change our situation. None of us could have foreseen how 2020 would have shaken out back in January of last year, and everything that we have been through has made us a lot more cautious and careful. Some of the effects are still shrouded in uncertainty. We can’t know how the pandemic will have affected the mental health of young children for some time yet, for example. Others were felt immediately, such as health, mobility and job security. It’s the latter that we’re going to be talking about here. Income Protection Insurance has never been more important than it is right now, and here are just a few reasons why. Also, if you are denied TSGLI, you can get help with it from here!

There Is No Knowing What’s Next

Here in the UK, we are at a bit of a crossroads. On the one hand, we are slowly but surely making our way out of lockdown, enjoying most (if not all) of the freedoms that were denied to us during the worst months of the pandemic. But we’re also at a point where emerging variants and rises in cases could push us back indoors. No one knows for certain when we’re going to be able to get back to normal in a definitive way, and that means that although our job security may be better than it was this time last year, it’s still not set in stone.

Income Protection Insurance Covers You For Health Issues

We’re going to get into issues like redundancy in just a moment, but it is important to stress that Income Protection Insurance will give you protection in the event of a sudden illness or injury. It goes without saying that COVID-19 is still the biggest thing that we’re worried about in terms of our health, and we are seeing more and more disturbing information about the details of long COVID. But we also don’t need to tell you that there are so many more reasons why you could have to leave your work due to an issue with your health or that of a family member. It’s estimated that 31% of UK adults have been through this, and with income protection insurance you are covered for accidents, injuries and periods of ill health. It is also crucial for workers, especially the first responders, to have First Responder Health Insurance coverage.

Job Security Is Never A Sure Thing

When the UK started locking down last year, it was a tremendous blow to businesses across the board. As a result, we saw so many people being furloughed and so many more being made redundant. Even if you were in the former camp, you were keeping one eye on the news and wondering if your employer could weather the storm long enough to actually open again once things improved. The employment crisis hit everyone, regardless of age and experience, and as awful as that was, it did serve as a reminder that we cannot responsibly operate on the assumption that our job security is a sure thing. You can never know what hard times are going to hit your place of work, and you can never know the kind of tough decisions that your employer is making regarding their staff.

But with income protection insurance, you can make sure that you are as well covered as possible if you do find yourself being called in for one of those “this is never easy” conversations. If you’re asking yourself “would I need income protection insurance?”, you should know that it can start paying out as quickly as one week after the job loss. You can choose policies for a period of time that works for you, including right up until retirement, and up to 70% of your yearly earnings could be covered. Drewberry has a wealth of resources that can show you the benefits and allow you to compare different providers.

Your Other Expenses Won’t Stop

Finally, one of the most important reasons why income protection insurance is so vital. While some payments can be postponed and debts can sometimes be renegotiated, you need to remember that your expenses won’t stop adding up when you lose your job. You will still have your rent, your energy bills, your grocery shopping and everything else from council tax to new shoes to worry about. 

You can’t completely cancel out the financial implications of being unable to work or being made redundant, but you can minimise them by planning ahead and taking out insurance.

Sophia Anderson

Sophia Anderson is a blogger and a freelance writer. She is passionate about covering topics on money, business, careers, self-improvement, motivation and others. She believes in the driving force of positive attitude and constant development.