Why protection should come first

August 15, 2014 | 8years | Insurance News

It's always nice to have a financial safety net, but unfortunately it seems that far too few people value that kind of protection. Figures show that just 10% of the UK population has income protection, despite the fact that 90% could benefit from it, meaning a huge proportion of working adults don't have any form of financial backup should they be unable to work.

It's a startling realisation. Protection should always come first and yet the sales figure show that it really doesn't, and that means a lot of people could end up struggling. What would you do if you couldn't work due to ill health? Could you afford the bills? It's not a nice thought and many of us take a distinctly ostrich-like approach to it, but that can do more harm than good.

If your income stream was switched off it could have far-ranging financial consequences. Debt could quickly follow, and in the most extreme cases it could be difficult to keep a roof over your – and your family's – head. This, really, is why income protection should come first.

This type of insurance will provide a valuable safety net, with it paying out regular monthly amounts should you be unable to work. Unlike other forms of critical illness cover it doesn't pay out a lump sum, but will instead keep your income stream going for the foreseeable. Hopefully you'll never need it but it's always nice to know you've got it there – it's all about protection after all.
 This article was taken from: moneyfacts.co.uk