According to recent reports, the economic boom in the UK is continuing to gather considerable momentum. The BBC even suggests that the economy will eventually surpass its pre-recession peak during 2014, as it overtakes France as Europe’s second largest nation in terms of GDP. While this news is largely positive, however, it may come as something of a surprise to home-owner across the UK, who are yet to feel the full benefits of the recovery or see it translate into rising levels of disposable income.
Introducing Income Protection: A Guide for Beginners
With this in mind, it is clear to see the pressing need for financial products such as income protection and insurance. Despite this, however, and the fact that consumers are always quick to purchase insurance coverage for their mortgage and any private medical care that they receive, income protection is a concept that they appear strangely resistant to. This type of insurance is extremely valuable in the current economic climate, primarily because it helps to subsidise your income in the event of an enforced layoff or illness or misadventure.
Payments and pay-outs often account for between 50% and 70% of your annual salary, depending on your cumulative earnings and length of service. This is a sizable sum, and can prove invaluable in instances where you are forced to remain off work for a prolonged period of time. Despite this, less than a quarter of British residents actively seek out income protection insurance, as opposed to a staggering 74% who look to financially protect their broadband access. As an exercise in prioritising expenditure, this is extremely flawed and potentially damaging.
In Summary: The Role of Income Protection in 2013
The need for income protection is pressing, especially when you consider the nature of the current economy. In addition to this, it is also worth noting that an estimated 12% of employers currently support their staff for over a year if they are unable to work, which means that many are facing long-term lay-offs and a decidedly uncertain future.
So if you are serious about protecting your financial interests and those of your loved ones, it would stand to reason that income protection should represent a sound investment. To find out more, visit the Active Brokers website and discover how an income insurance policy could help to afford you genuine peace of mind.