The Theory of Evolution by Charles Darwin tells us about a simple law of nature – the fittest of us all should be able to survive through the struggles of life. The ones who show maximum adaptability and resilience to external environmental threats are destined to zoom ahead faster than others in their lifetime.

In Darwinian terminology those external factors were changes in heat, temperature, time and reproduction capability; but for modern age sapiens, these threats are dilapidating physical and mental health, stressful work environment, prolonged illness, lay-off resulting in no regular flow of income.

Who could have thought that the same stone- age man would one day be sitting in front of the computer all day to make a living! Our forefathers for sure lead a more peaceful life but now the definition of a fulfilling life has changed. We don’t earn for a living, but a lifestyle. Who does not want to own a Lamborghini and holiday overseas twice a year?

However, there are events that we don’t like to think about because they throw a spanner at our dreams. We can do our best to be the fittest of all, but all the efforts can halt if we suddenly lose our job or fall prey to an ailment or accident.

We need to accept that we can never time the bad omen. The only thing that would keep us sane and safe in such a situation would be a steady flow of income to meet the ends.

But this income would only come to us if we wear our crisis management hats much before any such adversity crawls to our doors and knocks us off. One of the sure-shot ways to protect you and your family from it is to invest in a good Income Protection Insurance plan.

Every single working individual in the UK needs to have this, but they are not aware of the benefits it offers.

What is Income Protection Insurance?

Income Protection Insurance is a long term policy insurance that would give you tax-free monthly payouts if for some legitimate reason- illness, disability, impairment; you can’t work to make an income for a given period.

It guarantees you a fixed amount until you rejoin the workforce, retire, die or the policy terminates- whichever comes first. It’s different from other health insurance policies because they only give you a lump sum amount to pay the hospital bills. You can decide for yourself how you want to spend the monthly payout you’d be getting from Income Protection Insurance.

How much does Income Protection Insurance cost?

A lot of variables come into play to zero down on the amount you have to shell out. The most prominent ones are age, work profile, smoking habit, medical history, range of illness covered and the payout percentage you expect in the future based on your present salary.

There’s often a waiting period before you start receiving the payouts. Your monthly premium for the policy is inversely proportional to the waiting period- the longer you wait for the payment to commence from the Income Protection Insurance Policy, the lower your monthly premium would be.

Most of the policy beneficiaries wait for their sick leave period to end before they turn to this to seek financial support. The best part about this insurance plan is that not only can you use it to pay for your mortgage and basic living expenses, but to protect your lifestyle and long term well being – think about saving for your children, your retirement and even going for that lovely family dinner or holiday.

Do you actually need Income Protection Insurance?

The answer to it is a straight yes unless you have a pot of gold kept safely in your basement!

Aside from this sneaky Plautus reference, on a serious note, you should figure out how many months of paid sick leave your current employer is giving you. If it’s for over a year or two, and you think it would enable you to live comfortably for that period, you can skip Income Protection Insurance.

But if you say that you have enough savings to float your boat for this prolonged period, then you are living under a rock. You will certainly run out on your savings sooner than you think.

Also, most people are under the wrong impression that only life- threatening illness would halt their work life. But a 2019 study by LV on Income Protection states otherwise. 29% of the people surveyed claimed for the insurance amount because they were suffering from mental health issues. 25% had an accidental fracture and only 15% were contracted by cancer.

The bottom line is that such unforeseen events can hamper your long term financial goals and you should start thinking about the plan of action from today!

For those committed to securing their future no matter what life brings, getting expert advice from a qualified Independent Financial Planner would be the best bet. We at will weigh your options and help you make the best investment decision to protect you and your family.