Regardless of whether you have sufficient savings or an emergency fund, the majority of us would not be able to support ourselves and our families if we couldn’t work due to injury or illness. You may be able to weather the storm for a period of time but with the rising costs of living, it’s hard for anyone to know if they’d be able to manage financially in an emergency.
Income protection insurance is therefore a very important safety-net that provides reassurance and a sense of financial security should you fall ill or get seriously injured, meaning you and your family won’t have to worry about how you are going to support yourselves and you can focus on your recovery.
According to the UK’s Health and Safety Executive latest report, “the total annual costs of workplace self-reported injuries and ill health was £18.8 billion.” With ill health accounting for £11.2 billion and injuries were responsible for £7.6 billion, there is an immense impact that time off work has on the economy.
Between the individual, government, and employer; most of the costs fall on the individual (£11.5 billion). The Office for National Statistics reported that “Between June and August 2022, around 2.5 million people reported long-term sickness as the main reason for economic inactivity, up from around 2 million in 2019”.
This increasing trend in absence from work due to injury or illness is making it more and more recommendable to have income protection cover. The Guardian’s recent article on the latest IPPR report stated that Britain’s poor record on health is costing the economy £43bn a year and cutting the annual incomes of individuals affected by long-term sickness by up to £2,200 a year on average.
The general consensus from these reports and statistics is that the majority of the cost ends up with the individual who is ill or injured which only emphasises the need for income protection cover.