When the unexpected happens, it can be difficult to maintain necessary payments and ensure that the way of life you are accustomed to is preserved.
A life-changing or long-term injury can lead to difficult questions such as: “Will I be able to pay my mortgage?”, “how do I pay my bills if I can’t work?”, “what is going to happen to my home?”.
While it may be difficult to think about, the best practice for preparing for the unexpected is to put a plan in place that ensures that you and your loved ones are protected. Today, we are looking at a client who did just that and safeguarded themselves from financial difficulties.
Long-term injuries require long-term solutions
We recently worked with a client who was unable to continue working as an ‘own occupation’ dentist due to difficulties related to a long-term injury.
This client had an income protection plan in place which meant that they would get paid 60% of their usual income while they took time away from work for rest and recovery.
Due to the uninterrupted income, they were able to maintain mortgage payments on their home and sustain some of their daily living expenses.
Income protection plans that cover the important things
Without the income protection plan in place, this client would have had to rely on Statutory Sick Pay (£109.40 per week as of 14/08/2023) which can be a long process to secure and would have left them in a difficult situation if the funds could not be drawn quickly or if they were not eligible.
The limited income from Statutory Sick Pay meant that household bills would have remained unpaid and mortgage payments would likely be unpaid or difficult to keep up with. In real terms, the long-term result could mean the loss of their home.
Advice when you need it most
Income protection offers peace of mind and security for those who are no longer able to work. Whether it is for the short term or the long term, finding the right plan can save you from an agonising situation.
When considering an income protection policy, or any type of protection insurance, it is important to talk to a qualified advisor, not only to get the most up-to-date advice but to also have a clearer picture of what policy will work best for you and your situation.
The Mortgage Brokerage can provide you with a FREE review to discuss all your insurance needs… call today on 0191 4326177 or drop us a message here.
*DISCLAIMER: Your home may be repossessed if you do not keep up repayments on your mortgage*
