One may insure your income so that you receive a tax free income benefit
during periods when you are off work due to sickness and/or injury.
Many people insure against their death but do not seem to appreciate
that there is much more likelihood that they will suffer an illness
or accident, which will stop them working long term. At stake is your
income during your working life, which most people will be dependent
upon to achieve their financial objectives. If you own a mortgaged
property and do not have this insurance you could lose your home.
State Incapacity Benefit is currently £70.95 per week –
for someone earning £25,000 per annum this would represent
an 85% reduction in income. ‘Every day in Britain on average
2,900 people will start to claim State Incapacity Benefit.’
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