You put your little ones first don’t you? All those sleepless nights as they suffer snuffles and sneezes as babies, right through to being half awake until you hear the key in the door when your precious ones return from a night out. It’s a full time job and an expensive one too. Earlier this year The Guardian revealed it’s now a shade over £230,000 to raise a child to 21.
This is why I’m constantly surprised by the number of people who don’t plan ahead, or think about protecting their income. We all know someone who’s saving for a house deposit, or for a new car, but who’s saving for a baby? Staying with the house or car analogy, we wouldn’t consider having a roof over our heads, or a nice ‘set of wheels’ without insurance. But what would happen to you in the short or medium term if you lost your income through accident or illness?
Do you assume that your employer will step in? Most commonly these benefits are available from larger employers, and even then it may be for a limited time. Research shows that as few as 12% of employers offer financial support for their staff for more than a year if they are off work.
Are you expecting some help from the state? At the time of writing, the current rate of Statutory Sick Pay (SSP) is £88.45, and it’s only paid after 4 days, and up to 28 weeks.
There are two things you can do today, to provide for yourself and family, which could give you peace of mind:
- Income protection will replace a proportion of your income in the event that you are unable to work due to ill health, due to accident or illness, for a period of time.
- Critical illness cover is designed to pay a lump sum, or income, following diagnosis of a specified critical illness, or if you become totally and permanently disabled during the term of the plan.
Did you know that you are probably more likely to develop a critical illness during your working life than you are to die? In December 2013 The Guardian reported that you are six times more likely to claim under critical illness than life insurance, yet more people choose to arrange Life Insurance than to take out critical illness cover. In the event of a claim, a lump sum benefit paid by a critical illness plan could be used as you wish. You may want to pay off some or all of your mortgage balance, or there may be adaptations that could make life easier at home, or perhaps fulfil the dreams on your bucket list.
It probably costs less than you think too. A package for a 35 year old male non-smoker, to include £180,000 decreasing life or earlier critical illness cover for 30 years, plus income protection to pay a benefit of £1,000 per month (after deferred period of 3 months) up to age of 65, could be just £50 – £70 per month.
Here at Moving Experience we can help find the right package for you. This could work alongside employer provision or existing policies you may have. We want to make sure, that you, and in the words of The Who, the kids really are alright.