What do you think the chances are of you being unable to work because of a disability? Slim? That's a common view. In fact, research provided exclusively for The Independent by the insurer Zurich shows that half of us believe we have a less than a one in ten chance of being in that position.
In reality, however, 16 percent of the working-age population will suffer a disability that prevents them from working, while around 300,000 people a year fall out of work and into the welfare system because of health related issues.
The "it won't happen to me" attitude is very common. The truth is that it's really an "I hope it won't happen to me" attitude, but it encourages inaction when it comes to preparing for an eventuality that's more likely than they think.
The research shows that only four in ten people are educated of how to protect their income should they become unable to work due to health problems.
Peter Hamilton, head of retail propositions at Zurich, discloses, “Studies show that few people have adequate protection or savings to protect them against hardship if they are unable to work. There also seems to be a worrying lack of awareness of the support available through income protection, which should form the building blocks of good financial planning."
He further points out that in the UK was seeing a shift of responsibility from the state and employers on to individuals to make their own provision for themselves and their families if they become unable to remain in employment.
"Seven Families" was launched to raise awareness of the financial and emotional damage that long-term illness or disability can do to a family and its finances.
The campaign, backed by the charity Disability Rights UK and many of Britain's leading insurance companies, aimed to highlight income protection insurance by handing financial help to seven families for a year.
Daniel Pinder is one such person who has benefitted from the campaign. Daniel Pinder had suffered a series of serious health setbacks but receiving aid from Seven Families has made a huge and positive difference to his life. He said, "I wasn't prepared to deal with the changes to my health, especially with regards to how it affected others as well as me."
The financial aid from the campaign allowed him to buy extra equipment and services like crutches, wheelchair, cooling aids, electrical stockings and electrical stimulators which greatly improved his abilities, health and personal well being too.
Quotes shown are for a 40 year old male who doesn’t smoke. Policy is £100,000 life insurance cover for ten years with a fixed premium. Example is for illustrative purposes only and was correct on 21/11/2016.
The most common form of protection, ordinary term life cover pays a lump sum to your family if you die within a certain time-frame. Most policies will also pay-out if you’re diagnosed with a terminal illness and have less than twelve months to live
Critical Illness Cover provides a cash lump sum if you suffer from a range of serious conditions within a set time-frame. The money is normally used to pay the bills and provide financial security while you’re on the road back to health
If something serious happens to stop you working - for months, years, or even for life – you’ll want to know you have financial security and that the bills are paid. Income Protection gives you just that, paying a percentage of your income all the time you’re unable to work.
The NHS is groaning under the weight of the UK obesity crisis and newer, more effective medical treatments for a range of illnesses often aren’t available. Private medical cover makes ‘going private’ much more affordable – giving you access to more treatments, shorter waiting lists, and first-class care.
Most company directors are savvy enough to have life insurance, but very few realise they can save up to 53% by taking advantage of a Relevant Life plan.
Group Life and / or Health Cover is the most cost-effective way to provide peace of mind and financial security for the families of your employees.
Key Person Insurance - often called Key Man Cover - is an insurance policy bought and owned by a business to protect its own interests. Cover is provided in the event that an important staff member is suddenly unable to work through critical illness and/or death.
Shareholder Protection Insurance is designed to give you peace of mind in the event that a shareholder in a Limited Liability Company, a member of a Limited Liability Partnership (LLP), or a partner in a partnership dies or is diagnosed as critically ill.
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