How essential is Income Protection?

Income Protection could be even more valuable during the current ‘cost-of-living crisis’

It’s relatively common knowledge that the cost of living will be going up in April of this year and there is plenty of apprehension surrounding the subject. With recent events in Europe heightening that concern, many plan to slash any non-essential outgoings in order to help deal with the increased energy costs. So, where does Income Protection fall on the scale of necessity?

With an increase in energy prices drawing nearer, it’s completely understandable that people up are looking to save money wherever they can. When it comes to cutting costs, it’s important to consider the consequences before making a decision. The only consequence of ending subscriptions to streaming services would be that TV would potentially become more boring. But what about Income Protection insurance?

While Income Protection is an expense, and one that you might think you could save on by cancelling the policy or not taking one out, it could prove unwise if you were to need it, especially while the cost of living is higher. If your income were to stop in the middle of what is being called a ‘cost of living crisis’ it could be even more stressful than before.

Why is Income Protection so important now?

The latest research from the Office for National Statistics (ONS) shows that the average UK house and rental prices have gone up, with the cost of energy bills also on the rise.

With all that in mind, having a policy that will cover your income if you become unable to work has never been so valuable. With economic uncertainty circling the globe with the awful events unfolding in Ukraine, it’s important to have a back-up income.

Co-chair of the Income Protection Task Force (IPTF), Katie Crook-Davies, explained that having an IP policy in place is now “even more important, because while money is tighter, reliance on a stable income is greater, especially for those who are less financially resilient.”

Although it may seem like an unnecessary expense, and often people think ‘those things wouldn’t happen to me’, you can never be too careful. Income protection is the best way to ensure you and your family are financially secure for the future if you became unable to work.

If you’d like to discuss the options available to you, contact us today.

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