You could lose out on income if you are unable to work (Source: www.newsletter.co.uk)
Let’s face it, it’s our biggest nightmare. Losing a large part of, if not all of your income if you find yourself unable to work. This applies to both employed people and self-employed people. However, shocking research shows that a disproportionate amount of employed people don’t have a financial buffer to keep them afloat if they are unable to work for a period of time due to illness or a disability. Oportfolio explores what these figures mean and how speaking to an insurance advisor could help you prepare for the unthinkable.
The Facts
As we have already mentioned, both self-employed population and the employed population are both at risk of losing out on income if they find themselves unable to work. A self-employed person in the construction industry for example could find themselves unable to get back on to site for several months due to an injury or a debilitating condition. Could you survive on savings alone if you are unable to work for 6 months? Exactly the same thing could happen to an employed person.
According to recent research, self-employed generally have 6 months income as a buffer fund saved up in personal accounts or business accounts, to fall back on in case of emergency. However, on average those that are employed have a dangerously low emergency fund of only 1 month! That means that if you are unable to work for more than one month, you could literally have no money to pay your bills, your mortgage, buy food, or buy any other home essentials.
These statistics show how those that are self-employed understand the importance of being able to work and protecting themselves financially should the worst happen. Perhaps more so than employed people. Being unable to work at some point in your life happens to most people, whether this be a bad back, stress/ burnout, an accident or injury or illness.
What Can I Do To Protect My Income If I Am Unable To Work
Another statistic shows that there is a 53% chance of suffering from a condition that stops you from working for two months or more before their chosen retirement age, according to population and industry statistics. These things are not nice to think about but do happen. And the first thing that everyone thinks as soon as the unexpected happens is…what insurance is in place to sort this.
The most advisable thing that you can do before it is too late is to make sure that you have some personal protection to cover you and your family and allow you to keep in a strong financial position, while you organise your work or health. At Oportfolio insurances are our bread and butter and we have access to many different insurance providers and products.
Speak to us and we can help and provide you with the tailored independent advice you need. Call our team today if you feel that you need to get some insurance in place.
