The thought of losing one’s job is a frightening prospect, but with research from the TUC suggesting around one in eight (12%) men and women are forced to stop working before state pension age due to ill-health or disability, AIA members can now safeguard themselves against such a difficult scenario via discounted income protection insurance available to them at a 20 per cent discount for the first two years.
The TUC report, Postponing the pension: are we all working longer?, published last September, found that nearly half a million workers within five years of state pension age have had to leave the workplace for medical reasons. Another 2016 study, by housing charity, Shelter, found that one in three families in England could not pay their housing costs for more than a month if they lost their job, while nearly half of the families surveyed identified the cost of housing as the biggest drain on their budget.
One way to cater for such a scenario is to save; indeed anti-debt charity, Step Change, says – in its An Action Plan on Problem Debt, published in January 2015 – if every UK household had £1,000 saved, it would reduce the number falling into problem debt by half a million. Building up such a level of savings can, however, be difficult, and, argues PG Mutual, a not-for-profit membership organisation specialising in providing income protection insurance, ‘a better route is to consider taking an income protection policy’. Such policies provides people with a regular income should they be off work due to injury or illness, helping them to pay the bills and removing many financial worries during recovery.
PG Mutual said: “You might want to consider what would happen if you were unable to work due to sickness. Do you have a good back-up plan? If you’re employed, do you know how much your employer will pay you and for how long, and if self-employed, do you have enough savings to last you while you recover? Do you know what government benefits you would qualify for, and for how long? In short, are you financially secure enough to support your family and your lifestyle? If the answer to these questions is ‘no’, you might want to visit www.pgmutual.co.uk/quotation for a quote for Income Protection Plus.”
AIA Members receive a 20% discount off their first two years' cover^ by entering code ‘AIA’. ^For full terms and conditions, visit www.pgmutual.co.uk.