Believing you’ll never be without an income is a risky strategy. The unexpected does happen. Protecting your income lets you plan ahead and enjoy peace of mind for you and your family.

There are 101 financial pressures to juggle across any given year. Your mortgage or rent, car payments and pension contributions are top of the pile.

These include domestic bills such as gas water and electric. Of course, that’s before you think about food, entertainment, new clothes and holidays!

Don’t forget about monthly subscriptions to mobile phone contracts, TV services and gaming sites. They are part of the modern spending mix.

The list is, quite literally, endless. Therefore, it’s no surprise that most people use up most of their monthly income.

You will notice there is no mention of insurance in that long list. Household, car and insurance for specific appliances aside, something many people ignore is income protection.

Unfortunately, too many of us take health and our ability to work for granted.

What is income protection?

Insurance known as income protection is taken out to provide an income if you suddenly cannot work. Typically, it is separate from other insurance products and only pays out under specific circumstances.

This could be because of an injury, illness or disability. Things that prevent you from working and drawing a monthly income is covered by agreed payments during this challenging time.

Only a few people can get by on savings, and then only for a short period. Protection can provide a stable way to help pay the essential bills.

Income protection is also sometimes known as permanent health insurance. A good policy ensures you receive a regular income until you are able to return to work, or even retire.

Usually, you will receive payments after work-based sick pay finishes. Also, after any other insurance policy stops covering you.

Of course, policies differ. However, you should be covered for most illnesses that render you unable to perform work and earn. While the policy is running, there is usually no limit to the number of times you can claim.

Who should protect their income?

The simple answer is that most people should consider income protection.

According to the Association of British Insurers (ABI), each year around one million workers finds themselves unable to work due to an injury, or if they suffer a serious illness.

It can happen to anyone. Nobody is exempt from the unexpected. Thinking that “it will never happen to me” is foolish.

Personal circumstances change, and as you progress a career you are likely to take on more commitments. Becoming ill or having an accident could put immense pressure on you and your family.

Anyone self-employed could be particularly vulnerable. You are unlikely to have the back-up provided to employees of larger companies.

You should consider income protection if you work where there is no sickness or disability provision.

How do I pick the right income protection?

Income protection is not something that can easily be plucked from the financial products’ shelf. There needs to be a genuine understanding of what you want to cover, how and when.

There should also be regular reviews to see if the correct and most appropriate protection is in place.

Do you need that chat about income protection?

The Logic Wealth Planning team will sit down and assess your circumstances. We will help you to understand what is needed, then point you in the right direction.

No pressure. No hard sell. Just good, honest, independent advice about income protection.

Just call 0808 1234 321 or email info@logic-wp.com and we’ll get that financial health check started.