Protecting your income if you get sick, have an accident or die.

If you work, you expect to be paid. If you are self-employed, it comes from your turnover. If you are employed, it will be your employer making the payment. All is well and good.

If you have an accident or an illness that prevents you from working, you might still be paid, but usually, finances take a turn for the worse. How will you prioritise which bills must be paid and calculate how far your money will stretch?

If you are self-employed, you pay lower National Insurance, and one consequence is that you cannot claim statutory sick pay. So those bills might have to be paid from savings when your regular income dries up.

An employer might protect employed staff for a limited period. You should check your contract or speak with your HR department if you don’t know. You may be able to claim statutory sick pay. In April 2023, the weekly amount will be £109.40 for up to 28 weeks. You should consider how you could sustain yourself if that happened.

If you have a mortgage, you will have been offered protection that will pay your mortgage if you become ill or unemployed. Did you take it out and understand the terms and conditions?

If we must contemplate death rather than returning to work – will your protection plans protect your family? What would happen if you survived but cannot return to work?

Protecting your financial well-being is very important in these times of rising costs. Speak with an Independent Financial Planner to conduct a financial review.

Eamonn Dorling Dip PFS

Senior Independent Financial Adviser

Brooks Wealth Management