Income Protection

updated: January 22, 2010

Important as protection against short-term sickness or minor accidents may be, the risks associated with a prolonged disability are much greater. 

The financial problems faced by a family when the main breadwinner suffers from a prolonged disability, can be much more serious than if that person had actually died.

The thought that any of us might suffer from a prolonged disability is not something that we really want to dwell on.  This is probably the main reason why only 10% of the working population currently insure themselves against such an event, even though the results could be financially devastating for themselves and their families.

The reverse of this is probably the reason that, each week, several million people stake their cash on the National Lottery.  They like to think about having instant financial security for the rest of their lives, even though the chances of it ‘being you’ are rather slim - just one in around 14 million.

Many people still seem to believe that the State will look after them if they suffer from a prolonged disability.  The State does have a role in this but it is limited to providing a level of support that anyone in work would find it extremely difficult to live on. 

Certainly the State support does not consider that you need to eat out, have good holidays, buy your own home or send your children to a private school.  In other words if you rely on the State for assistance you are letting a future Government determine how you will live during a period of prolonged disability. 

To obtain further information please click here for our pdf Guide to Income Protection.