Nicholls Stevens Financial Services

PROTECTING YOURSELF

Last month we wrote about protecting your family with life assurance. If you had no dependants you most probably ignored the advice as being irrelevant to your circumstances.

Accident or sickness

This month we want to look at a situation which affects us all and that is how we would manage financially if we were unable to work through an accident or sickness for a long period. You may think that the State Benefits would be sufficient to meet your needs. This is unlikely, Statutory Sick Pay (£79.15 p.w) or Incapacity Benefit (£67.75 p.w.) for the first 28 weeks of illness would be in the region of £293- £342 per month  and thereafter your ability to obtain Long Term Incapacity Benefit will be subject to stringent testing.

Income Protection

Many people are unaware that it is possible to protect against this situation by taking out an Income Protection Policy.  This policy pays a tax free benefit after a period of deferment, usually 3 or 6 months. This income payment continues until recovery or a fixed date, usually retirement age. The cover provides for any number of claims to be made, so you can have a recurring condition and once the policy is issued, the Insurance Company is bound to honour all legitimate claims

For further information and an indication of cost please contact us