Dealing with an illness or accident
Help for those unable to work and the people caring for them
If you, or someone in your immediate family suffers from a serious illness, or
an accident that prevents them from working, it could have a dramatic impact on
your finances, even if it’s only temporary. It’s these situations that can often
lead people into debt, which can get out of control. The reality is, it’s better
to plan for it than find yourself with the added stress of worrying how you’ll
cope financially along with the physical impact of an accident or serious illness.
So while we can’t predict the future, there are ways to protect your income,
or boost it through any state benefits you may be entitled to if you find yourself
in this situation. Here are a few things you might want to consider:
Cover that’s offered through work
You may have some kind of income protection, or critical illness cover through
your employer already. And this is often one of the cheapest ways of protecting
yourself. If you’re not sure, check with your employer before you look elsewhere.
And if you are entitled through work, check what level of cover you’d have. If it
wouldn’t be enough to cover your current outgoings and commitments, you may need
to top it up.
Could you live off one income?
If you don't have any protection in place, do your sums to make sure you could
afford to live off one income if you or your partner were unable to work.
Get some advice
There are lots of policies available that can cover your mortgage payments,
protect your income, pay you a cash lump sum or keep up repayments on loans and
credit card. So it’s well worth talking to an independent financial adviser about
the options and which one is best for you and your family.
Find out about benefits you’re entitled to
You may be eligible to claim benefits including Statutory Sick Pay, or if you’re
caring for someone who is ill and unable to work, you could receive a Carer’s Allowance.
Some of the benefits available are taxable and may not provide you with an adequate
income, so it’s well worth looking into alternatives that will cover your needs.