| Friday, June 30
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Owen injury a wake-up call for income protection |
But while football clubs have insurance policies in place to cover the wages of injured footballers, most families have no such policy in place to protect them should their principal earner become incapable of working, independent protection specialist Lifesearch notes.
Legally, employers only have to pay injured workers a little over £70 a week for the first six months if they are too ill to do their job, but Britons are simply not insuring their income.
"People have all sorts of insurances to cover different aspects of their lives," said Kevin Carr, senior technical adviser with LifeSearch.
"But few cover the very thing that pays for everything else - their income.
"That's because many people do not realise there is such a thing as long term income protection insurance, which is paid free of tax. It is not nearly as well promoted as life insurance or payment protection insurance."
But this ignorance could prove costly if injury or unemployment were to strike.
"According to industry statistics, an average man under 50 is twice as likely to be off work for more than six months because of an accident or sickness, than he is to die," Mr Carr explained.
"Although many employees do pay more than the minimum statutory sick pay, few will continue beyond six months.
"If you are only entitled to the minimum or are unable to work for more than six months because of sickness or injury, it could well cause major financial problems.
source: www.myfinances.co.uk |
posted by ^%&^
@ 1:08 PM
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