As we begin to emerge from the pandemic, and the news is full of increased waiting lists for routine surgeries, many people are looking at private medical insurance to fill the gap. But how are insurance companies reacting to the challenges of access to your GP, the difficulty of getting a prompt consultant referral, or follow on therapy planning?Read more
Protecting the most important part of your business
Running your own business is hard. Whatever it might be, you are constantly making sure that you are earning enough to not only pay for all your overheads but to also pay yourself a decent salary, otherwise what is the point?Read more
No-one could have predicted the first half of 2020 and what it would bring, so the notion that you could have been completely prepared for what was to come is difficult to comprehend. I’m guessing that if you could travel back in time and put more insurance policies in place you more than likely would have.
One of the most overlooked types of insurance has typically been income protection. Research conducted by the Financial Conduct Authority shows that only 35% of people have any form of protection insurance in place, and of that 35%, only 4% have any form of income protection.
Two of the most common reasons for this is the lack of understanding around what income protection is, and the belief that you’ll never need it! However, a good way to understand what income protection is, and what it does, is to look at the furlough scheme used by the government in recent months.
Since March, nearly ten million UK workers have been placed on furlough, so it’s likely that if not directly impacted yourself, you know someone who has been. The basic premise of furlough is to support workers financially while they’re unable to work due to COVID-19. Albeit that the mechanics, criteria and funding are different, this is basically what income protection does.
What would have happened to all those workers if the furlough scheme hadn’t been introduced?
This is the question you need to ask if yourself and assess your own circumstances if don’t have any income protection in place.
A common response to income protection is ‘it’ll never happen to me!’, but what 2020 has shown us so far is that nothing can be predicted and it is better to be prepared and protected should the unexpected happen.
Income protection plans normally cover up to 60% of income and protect you if you are unable to work due to sickness, illness or an accident that keeps you off work for a period of time. You can, based on your savings, determine the amount of time before the income protection pays out with deferral periods being normally one, three, six or twelve months. During that period there would be no payments for the income protection.
What if you’re self-employed?
If you’re self-employed you can still get income protection, and in fact it may be even more relevant for you. However, according to research from The Exeter, less than one in 10 self-employed workers protect their income, and nearly a fifth of self-employed workers have no personal savings to rely on in times of financial uncertainty.
According to the Office for National Statistics, the UK self-employed workforce grew to 5 million by the end of 2019, representing 15.3% of employment, up from 3.2 million in 2000.
With more UK workers embracing self-employment, options within the marketplace have adapted to better serve this growing sector of the workforce, with bespoke policies tailored for the differing requirements of the self-employed.
Income Protection plans typically have no cash in value at any time and cover will cease at the end of term. If premiums stop, then cover will lapse.
As a small or medium sized business owner, you should be proud to form the backbone of the UK economy. You currently form 99% of the number of UK private sector businesses, and 60% of employment in the private sector is reliant on SME’s like yourselves, making you vital to the UK economy.
Being so vital to the UK economy means as business owners, you are aware of the risks that you may face including changes in the economy, competitors and ongoing profitability. You are also prudent enough to cover some of these risks like premises, machinery, vehicles and computer systems. Yet these are not the necessarily the biggest risks you may face as a business owner.Read more
As we emerge from the Covid-19 pandemic many things will have changed, they way we work and socialise, and the way we use technology.
As most people have had more time during the lockdown, they have been able to review the features and benefits of the products and services they buy, what are the added value benefits, are they useful and do they enhance the product?Read more
What happens to your income if you are unable to work due to a long-term illness or disability?Read more
Whether you live in a one bedroom flat or a five-bedroom detached house, you’ve worked hard to make your house your home, so it’s important to have the correct protection in place in case something should go wrong.
Though you might believe the unthinkable would never happen to you, what if it did?Read more
Because it’s more than just a house, it’s your home…Read more
An increasingly popular benefit for employees, health cash plans are a type of insurance policy which pay employees tax free cash back towards everyday health care such as dental treatment, eye tests, glasses, contact lenses and physiotherapy.Read more
So, you’ve already arranged a life insurance policy, or you may be about to do so. Perhaps you’ve done this to cover a debt such as a mortgage, or to provide a lump sum for your partner or your financial dependents. But should this policy be in trust? Who will get the money and how long will it take?
If you have made a will then it will contain a list of who you wish to receive the benefits of your estate, but before this can be carried out your executors will have to apply for a grant of probate. If you haven’t made a will, any assets will be subject to the Laws of Intestacy which could see them go to the wrong people.Read more