The Covid-19 pandemic has been a worrying time for many employed workers and the self-employed. Although the government has provided income to those that are furloughed, it is important that workers review their income protection insurance to make sure it covers them if they lost their job or were unable to work due to Covid.
If you are working or self-employed and don’t have income protection, consider purchasing it so you are still able to pay your mortgage and bills.
Need help setting up an income protection policy?
Call Oliver Rea-Jayson our mortgage broker in St Albans who will check the insurance market for a suitable income protection policy. Lonsdale Mortgages is a ‘no-fee’ mortgage broker and will not charge you any fees for our mortgage and insurance services as we are paid commission by your provider when your insurance completes. Call our mortgage brokers on 01727 845500 to find out how you can save time and money
How has the government provided income protection during the pandemic?
The Covid-19 pandemic has had a massive impact on the working population. For anyone who has been furloughed the government has provided income protection for many through the social security system through the Coronavirus Job Retention Scheme (CJRS) for furloughed employees, the Self-Employed Income Support Scheme (SEISS) and universal credit (UC).
What is income protection?
Income protection normally pays out a percentage of your salary (generally around 50%). Your policy provider will pay this to you when you are unable to work due to disability, illness, accident or unemployment. Income protection is normally paid after a deferred period of three to six months, and you receive it until you can go back to work or your policy ends.
‘Since the pandemic there has been an increase in the number of people looking to purchase income protection policies. However, it is important to understand the limitations of any new insurance policy, as some insurers are not offering Covid-19 cover, so these policies wouldn’t pay out if a policyholder was ill and couldn’t work due to the virus. There are still income protection policies available that cover you if you can’t physically work because of Covid, but they are becoming more difficult to find and have restrictions. It is important to review any policy before you purchase it, as all income protection policies offer different levels of protection.
Oliver Rea-Jayson Lonsdale Mortgage Advisor and member of the mortgage broking team St Albans continued:
‘Before purchasing income protection cover all employees should check if their employer offers group income protection. If you already have protection policies in place it is worth reviewing them annually. Remember that the amount of income you can claim from your policy may not replace your salary so you still may have to supplement the monthly income protection payment with savings to pay your mortgage or other outgoings. Our Lonsdale Mortgage Broking team recommends not cancelling any existing income protection policies prior to taking insurance advice and setting up a new policy. For more information on income protection policies call our Lonsdale Mortgages brokers on 01727 845500’