You might believe you’d be more likely to call on your income protection policy later in your working life, but data from protection insurer, The Exeter, show their average claimant was 40, and on certain products, just 33.
Income protection is designed to pay an income if you’re unable to work as a result of an accident or illness. The benefit usually kicks in after what’s called a deferred period and can last until you’re able to return to work or you retire.
Cover for physical, and non-physical conditions
Every year, one million workers will have to stop work due to prolonged sickness or injury, but the number having to take a break because of mental health issues is sadly growing. As well as revealing the surprisingly young age of some of their claimants, The Exeter said that mental health-related issues were accounting for a growing number of its claims; reaching 10% in 2018.
The Association of British Insurers (ABI) had previously reported that mental health was the most common cause of claim on income protection policies in 2017; perhaps unsurprising given that one in four of us in the UK will be affected by a mental health problem in any given year.
Whether your reason for claiming on your income protection policy is physical or mental, having cover in the first place is crucial – especially if you have a mortgage or people who rely on your income.
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