Even TV stars need to protect their income
Consumers can learn a lesson from Eastenders star Joe Swash and ensure they protect their income in case they are too sick to work.
Everyone thinks it will never happen to them but the truth is that illness and disability can financially hurt even the biggest names in show business unless they have some form of protection. The story of Eastenders star Joe Swash, famous for playing Walford’s cheeky Mickey Miller (who made his final bow in Albert Square last week) should be a warning to everyone who has not protected themselves against losing their salary.
Joe was off work for 3 months after being rushed to hospital in September 2005 with meningitis and encephalitis, a swelling of the brain, and was kept in hospital for 6 weeks. Yet despite being off work for a total of 3 months Joe reportedly didn’t get sick pay.
Of course very few people have the advantage of celebrity and when illness strikes the financial outlook if often bleak. Few people consider what would happen if they lost their income and they often dramatically overestimate the amount of state help they could receive. Instead, most people only buy Life Cover to protect against the financial impact of death, yet losing your income due to illness is far more likely to happen.
Even Lee McQueen, winner of The Apprentice, was allegedly struck down by a virus and was unable to attend work on his first day at Alan Sugar’s offices on 1 July. If Lee is off work for a substantial amount of time and does not have an Income Protection (IP) policy with his employer he may find himself financial stretched. Any consumers with no financial protection through their employer should consider IP before all other forms of cover.
It is not a well-known policy, yet may pay you your net income tax-free, potentially all the way until retirement, if you are unable to work due to illness or disability. It is also possible to get additional cover for your employment in case you are made redundant.
Below is a table of premiums illustrating just how inexpensive IP can be. Quotes are for a non-smoker in good health, covered until the age of 65 for £1200 per month. Matt Morris, LifeSearch Policy Adviser, says: “It is a shame that so few people know about Income Protection as it is the policy you are most likely to claim on and is relatively inexpensive. It should be top of most people’s must-buy list when searching for a financial protection product.”
Remember, no single insurer will suit everyone. So those who have a high BMI or complicated health problems should ensure they do not simply go for the cheapest insurer, as it will almost certainly cost them more in the long run. If unsure, speak to an independent adviser. Peace of mind – unless you have to face the All Blacks! Enquiries
Notes to editors
- About LifeSearch
- LifeSearch can source case studies where required and can provide tables of typical premiums.
- Consumers can now buy Protection Insurance products online with regulated advice in a quick and simple format for the first time ever without having to deal with an adviser at www.getliferight.co.uk.
- Contact LifeSearch
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