Hello, I am Leanne Richardson and this is my second guest blog for the Hull & East Riding Mumbler.
I am a Protection Specialist based in Hull and I am a wife and mum to an almost 2 year old daughter. Most of you will probably know what that is like! My husband works full-time as an Electrician and I am self-employed currently working around 25-30 hours a week (I don’t count). In this blog post I wanted to cover something that I feel is really important but not a lot of people are aware of it. I hear all the time ‘I need life insurance’ but I never hear ‘I need Income Protection’ so that is what I am covering here……
You will hopefully already be aware of Statutory Sick Pay. Statutory Sick Pay (SSP) is currently £94.25 per week and it pays out for upto 28 weeks, that’s just approximately £377 a month which doesn’t cover most rent or mortgage payment. There may also be a delay when applying.
Some employers do provide sick pay for a period of time, this may be 3 months full pay and then 3 months half pay, for example. The NHS and Hull City Council pay upto 6 months full pay and 6 months half pay.
When I speak to clients one of the things I ask them to check is if their Employer provides any sick pay. Some of my clients have been pleasantly surprised to find out that their Employer does and others thought they did and have found that they wouldn’t receive any sick pay at all.
I would urge you to find out to give you some peace of mind and allow you to consider how you would cope financially if you were unable to work due to being injured or ill. Many families would struggle after just a week of little or no income so I highly recommend Income Protection.
What is Income Protection?
Income Protection is a policy that pays out a monthly tax free income if you are ill, injured and signed off work by a Doctor. It is based on your Gross Annual Salary, up to 70% which tax free is the majority of your net pay. A lot of the policies I recommend to my clients also include various benefits, in particular, services to help you return to work such as physiotherapy and counselling.
I recommend what is called a ‘deferred period’ which works with your employer sick pay. For example, if you receive 3 months sick pay, as long as you need it, I would recommend a deferred period of 3 months. There are different types of policies, some that will pay out for up to 12 months, up to 5 years or others right up to retirement. The policies with a shorter benefit period allow you time to heal and make changes in your life if you need to. I recommend the longer term policies, right up to retirement for those in particular who have trained for many years in their profession and wouldn’t want to do anything else as an alternative.
If you are self-employed it can be very difficult to receive an income and there are policies available that I can recommend to help you during a difficult time. Insurance can be complicated and can take time to research, that is where I come in. I provide a FREE advised service on Income Protection and the following:
Term Life Insurance & Critical Illness Cover
Family Income Benefit
I can also help you with Wills and Trusts, but that is for another post…
I can visit you at home, coffee shop or provide a telephone service.