Protecting Your Income
How long could you continue to service your outgoings in the event that you stopped receiving your income today?
Unfortunately, the reality is that for the vast majority of people this is not very long.
Some people may receive sick pay through their employer, however this is only for a limited period of time should you be unable to work due to serious illness or injury.
For many they may only be entitled to statutory sick pay. This is currently only around £118.75 per week (at time of writing, Spring 2025), and could become your only source of income when your sick pay comes to an end.
Mortgages are typically taken over a 25 year period, sometimes longer. If we break this down, this could mean that you would need to make 300 monthly payments before your mortgage is paid off.
Taking the same scenario, if you received your 3 months sick pay from your employer, and you were unable to work long term, you would need to seriously consider how you would manage to make 300 mortgage payments and maintain your lifestyle without a regular income?
Maintaining a regular income is crucial to being able to live the life you want, and it also allows you to save towards retirement. If your income is stopped for any reason you could suffer financial hardship quite quickly, and this can have a devastating effect on your life and family.
Putting an income protection plan in place can help to give you peace of mind knowing that if you are unable to work due to illness or injury, you will still continue to receive a regular income.
These types of policies can cover up to 60% of your pre-tax income and is paid out tax free. They can be arranged to run up until your chosen retirement age and the payment can be index linked to ensure your monthly cover amount keeps track of the cost of living increases.
Policies can be tailored to your needs and requirements and our advice is to always consult an expert as getting this wrong has the potential to have serious consequences.
There are various different features that can be explored when taking out a policy. For example, if your income was to increase over the years, the level of cover can also be increased in line.
In the scenario where you are in a position to return to work, the policy would stop paying you, although some policies provide a stepped benefit, meaning that if you are only fit enough to return to work on reduced hours, the policy would ‘top up’ your income to assist with the transition back into the workplace.
At the end of the claim period the policy stays in place should you ever require to claim on it again, and will even cover you for the same condition that you may have already claimed for. Unlike car and home insurance, the premiums do not increase if you have made a claim.
If you are looking to protect your income, please get in touch with our specialist.
Income protection for Dentists
We have extensive experience working with Dentists and other health care professionals. We understand that the nature of this profession throws up various areas of risk that need to be protected against. Dentists are often self- employed and need to be fully mobile and injury free in order to treat their patients.
The likelihood of a Dentist being unable to work can be higher than other occupations, as even a hand injury could result in you being unable to work. As could any other physical injury that could affect your mobility.
If you are a Dentist and would like to discuss your income protection options, please get in touch with our specialist.
Income Protection for Doctors and GPs
Another area we specialize in is assisting Doctors, GP’s and other Health Professionals to protect their income. We have worked with many Doctors over the years and have a full understanding of the terms of their employment.
We understand that for many Doctors, sick pay entitlement can be relatively short during the initial phase of the contract, but will increase over time with length of service.
As your salary increases over the years, and your sick pay entitlement rises, it’s important to take expert advice and guidance to ensure you have the right type of income protection policy as your role changes.
This could be moving from a Trainee/Junior Doctor up to Consultant level or choosing to work as a GP which would also involve moving from employed to self employed status.
Income protection for Doctors is an important area of cover to help ensure you can be financially secure in the event of being unable to work long term.
If you are a Doctor, GP, Consultant, or Health Care Professional looking to protect your income, please get in touch with our specialist.
Income Protection for Equity Partners
We have extensive experience assisting Equity Partners with their finances and can help structure the right types of cover to help ensure your mortgage, income and family are well protected in the event of serious illness or you passing away.
As careers progress and income increases, there is often the potential to take on a bigger mortgage to purchase a larger home, but the potential downsides are that may you lose the employee benefits that you received as an employee. This often includes benefits such as sick pay, death in service benefit, possibly income protection and/or private medical insurance.
If you are an Equity Partner looking to protect your income, please get in touch with our specialist.
Income Protection for Business Owners
We have extensive experience helping Business Owners to protect their income. We understand the significant challenges of self employment. If you are self employed you will have no sick pay to fall back on if you suffer ill health or injury.
We understand the reliance on the money that you might have on the funds within the business, as well as any money that is owed to the business.
Should you as a business owner suffer ill health or suffer an injury, you would have to seriously consider how long this would last, and also consider how much you would be willing to use if you were unable to work long term?
We can work with you to create an income protection plan. This would pay you a regular income and help to protect the profits of the business. With your regular income replaced, this may help should you require to pay a replacement member of staff to help to run the business in your absence to allow you to focus on your recovery.
We fully understand the areas of risk that business owners face as well as the impacts should these risks materialize, and will work with you to create a comprehensive protection plan to provide complete peace of mind.
There are various different types of income protection policies such as a Standard Income Protection Plan or an Executive Income Protection Plan, with potential options to set up and pay through your business.
If you are a Business Owner looking to protect your income, please get in touch with our specialist.
Income Protection for First Time Buyers
Buying your first home is such an exciting time, often taking the leap from renting or living with family, but with it comes a level of financial risk should you ever become seriously ill or injured and be unable to pay your mortgage.
In the scenario where you are unable to work long term, you will still be required to pay your mortgage and other outgoings. The reality is that most people would not be able to manage for long if their income stopped, and parental support can only assist for so long.
An income protection plan can give you peace of mind so that if you are unable to work you’ll have a regular income so that you can continue to live in your home, as well as service your outgoings.
In summary an income protection policy is your own sick pay plan that protects you long term and allows you to focus on getting better if you become injured or are seriously ill and unable to work.
Our protection experts can help to structure your income plan and tailor to your requirements to ensure that you are well protected should you be unable to work in the future.
There is a multitude of different income protection providers out there, and they all offer a varied range of differing benefits, as well as varied terms and conditions. Expert guidance is crucial in ensuring that you have the right policy for your circumstances.
If you are a first time buyer looking to protect your income, please get in touch with our specialist.
Putting our clients best interests at the heart of every decision, each and every time.
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