Income Protection Is The Secret To Better Financial Resilience

Income Protection 2

Life is full of unexpected twists and turns. You can be fit and healthy and then suddenly become seriously ill the next day. When that happens, how are you going to provide for you and your family if an illness or injury prevents you from working for a period of time? The fact is, our financial obligations will still exist even if we are suddenly incapacitated for work. Therefore, it is of utmost importance to be prepared, so you can cope financially and bounce back when the unexpected happens.

According to ABI Assistant Director, Raluca Boroianu-Omura, families experience personal and financial difficulties due to a serious illness or injury. He also said that Protection Insurance products pay out £13m a day to help families cope financially following a death, serious illness or injury. According to him, 97% of all protection claims were paid in 2016.

The statistics below that were released by the Association of British Insurers on the 8th of May 2017 shows the percentage of new claims that were paid, which is a proof of how protection products help a lot of people in a time of great distress.

Figures for the whole protection market (individual and group):

Products

Number of claims paid*

Percentage new claims paid Percentage new claims declined Total value paid (£000)* Average value of claim paid (£)*

Critical Illness

15,464 92.2% 7.8% 1,047,435

67,733.74

Life

36,814 98.3% 1.7% 2,763,324

75,061.78

Total Permanent Disability

531 69.5% 30.5%

30,357

57,169.49

Whole of Life

85,860 99.99% 0.01% 407,696

4,748.38

Income Protection

28,023 84.7% 15.3% 499,316

17,818.08

All Protection Products 166,692 97.3% 2.7% 4,748,128

 

Income Protection is designed to replace part of your income if you are unable to work due to illness or injury. Depending on the policy you have, it covers most short or long-term illnesses that render you unable to work. It helps you bounce back and recover financially because it pays out until you can start working again or until you retire, die or until the end of the policy term. To find out more about Income Protection, just click on Get A Free Quote or call 02380 170 850

 

Source:

https://www.abi.org.uk/news/news-articles/2017/05/protection-insurers-pay-out-13m-per-day-in-claims/

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