One Four Nine Wealth – Guide to income protection insurance
How would you pay your bills if you couldn’t work?
Safeguarding your financial stability is more crucial than ever in the unpredictable journey of life. Income protection insurance is pivotal in a comprehensive financial strategy, offering you and your family a safety net during unexpected life events. It’s insurance that works while you can’t. Knowing that your income is secure should unforeseen circumstances arise provides peace of mind.
Understanding the importance of income protection insurance can transform your approach to financial planning. It ensures that your family’s needs are met despite adversity and that you maintain your lifestyle. Exploring the options available can seem daunting but the benefits are significant. Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to ensure you receive a regular income until you either retire or are fit to return to work.
Surprisingly, according to research, only a small fraction of the UK population – less than one in ten, to be precise – has this type of cover in place [1]. This is despite the alarming statistic that 42% of UK adults are concerned about their household’s ability to cope financially if they cannot work [2].
Gender protection gap
There is also a notable gender protection gap. A significant 29% of women surveyed indicated that they couldn’t afford protection, in contrast to 23% of men. Moreover, over a quarter of women admitted they would have to rely on their partner’s income if they found themselves unable to work. This reliance underscores the importance of personal financial independence and protection planning.
Read our guide to income protection insurance below.
The Financial Conduct Authority does not regulate on Trust Planning.
Source data:
[1] The survey data was collected and analysed by Censuswide Research. The total sample size was 4,043 UK adults, including 1,000 self-employed and 1,000 private renter respondents. Fieldwork was undertaken between 17 – 29 April 2024. The survey was carried out online. The figures have been weighted and represent all UK adults (aged 18+).
[2] The survey data was collected and analysed by YouGov plc. The total sample size was 2,059 adults. Fieldwork was undertaken between 2 – 8 February 2024. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
