For most IFA’s the 1st thing we worry about for our clients is protecting their incomes against ill health or accident – if they have no income, most other planning we do for the client can fall by the wayside as soon as an illness strikes.

Your reaction, reading this is ‘EXPENSIVE’ and my reply is – surprisingly not.

Lets assume we have a 35 year old male desk worker, who gets 6 months sick pay from work.  He wants to make sure that his income of £36000 carried on until age 65 if he was off sick long term.  How much do you think he’d pay? Well, if he’s in good health now he could  pay less than £30pm. In fact there was a policy for less than £20pm if his job could be described as professional.

£20pm to make sure that if you got stress or some other illness your income is insured. That’s not expensive. Is it?

So, why doesn’t every person have this insurance?

Well, not everyone is a desk worker – lumberjacks would pay more, trawlermen would probably be declined if that program on Sky is anything to go by and lets not talk about Ice Road Truckers.

And not everyone gets 6 months sick pay, if you needed the insurance to kick in after 3 months you’d pay a tad more, although it is even cheaper if you get a whole years sick pay.

The thing that makes it cheap though, is that it pays out with no tax, so I don’t have to insure the full  £36000, I went for half that for the example – that’s £1500pm which, when added to state benefits that I would expect to be about £74pw would roughly match our man’s take home pay.