Income protection – why you should protect yourself

22/10/2021 / Liberty news

Everyone knows they need to insure their car, their home and anything precious, from pets to bicycles. But the breakout of the COVID-19 pandemic was a classic example of what’s known as a ‘black swan’ – the sudden appearance of something that’s previously considered unlikely, but that has severe and long-lasting consequences when it does arrive. 

The human cost has been incalculable, with millions of lives touched by death, illness and job losses. Amid the struggles, many people have had more time to reflect on what matters most to them and make changes for the better. For some, this has meant turning to protection insurance and taking out policies that would pay their mortgage and living costs or support their loved ones if another black swan appears. 

It’s no surprise that it’s women who are looking to protect themselves from future financial knocks in greater numbers. At the start of the pandemic, the Organisation for Economic Co-operation and Development (OECD) warned that women’s jobs, incomes and businesses would be more badly affected than men’s – a trend seen during other pandemics.2

These predictions were realised in Britain, as women were the majority of those on the government’s furlough scheme, while 57% of workers in industries forced to shut down were female. The burden of unpaid labour also increased, with women largely relied upon to look after children when the schools closed. 3

There is a wide range of protection policies available to cater for every kind of personal circumstance. And it’s important that both the higher and lower earners in a relationship consider covering their financial and care contributions to the household. Before opting for one, it’s important to speak to a financial adviser to assess your financial liabilities and ensure you have the right insurance for your needs.

If you are looking for income protection, we can help you choose the best policy for your circumstances – please get in touch.

The value of an investment with St. James’s Place Wealth Management will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

1 A more inclusive protection market, iPipeline Quarterly, iPipeline UK, November 2019
2 OECD Policy Responses to Coronavirus (COVID-19): Women at the core of the fight against COVID-19, Organisation for Economic Co-operation and Development, 1 April 2020
3 How has the coronavirus pandemic affected women in work?, House of Commons Library, 8 March 2021

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