Do you have income protection in place?

Britain has seen major changes in 2024 - new leadership, better control over inflation, and some banks offering lower mortgage rates. However, it's not all smooth sailing. Many families are still watching their spending carefully, though fewer people are struggling compared to last year. In the context of a higher tax environment, income protection can give you peace of mind.

Why Income Protection Matters Now

In these uncertain times, income protection insurance has become increasingly important. This insurance helps people who can't work due to illness or injury. While it used to be overlooked in favor of other insurance types, more people now see its value as a financial safety net.

The Economic Reality

Looking back, the UK faced tough times with inflation hitting 11% in late 2022. While things are improving, we're not completely in the clear. Interest rates remain high, affecting mortgage payments and household budgets.

Despite fewer people buying homes, income protection insurance sales grew by 8% in early 2024.

Income protection benefits for the self employed

Self-employed individuals are particularly vulnerable to income disruption since they don't have employer benefits like sick pay or holiday pay. Income protection becomes crucial as it provides a regular income if your unable to work due to illness or injury. This means you can continue pay your bills, maintaining other business overhead costs, and supporting families during recovery periods. The policy can be tailored to your specific needs, considering factors like variable income patterns and waiting periods that suit your savings buffer.

Income protection for People Renewing Mortgages

When homeowners are renewing their mortgages, especially in a period of higher interest rates, income protection becomes a critical consideration. It provides peace of mind that mortgage payments can continue even if the homeowner becomes unable to work. This is particularly relevant given that mortgage payments often represent the largest monthly expense for most households. The protection ensures that homeowners won't risk losing their property due to inability to work, providing a safety net that complements their mortgage terms and helps maintain long-term financial stability.

Looking Ahead

Despite current challenges, there's room for optimism. Interest rates are expected to fall, which could help with housing costs. Income protection is becoming more central to financial planning, whether you're renting, self-employed, or buying a home.