Protecting your living costs and the benefits to you

If you were unable to work due to an accident or sickness would you be able to live off statutory sick pay? It can be stressful for you and the family with the lack of your income coming into the household.

What is living costs protection?

This is a policy that can cover you and your family if you are unable to work due to illness or injury. You could receive from £500 to £1500 payouts for up to 12 months while you are unable to work. The payout you receive can be used to cover the loss of your income, allowing you the ability to pay regular bills and buy essentials.

You can take out a long-term policy, but if you prefer, you could have a policy for as little as 5 years. When taking out the policy, you would also decide on how much you prefer as a pay out, how long the deferred period is (time before you receive the first payment after a claim) and how long you would want the term of the policy to be.

Quick summary:

A monthly benefit between £500 and £1500 Deferred payment of 4, 8, 13 or 26 weeks Length of the policy term – 5 to 52 years (up till your 71st birthday)

If you would be looking to get more cover than £1500 a month, you may want to check out Income Protection which can pay out 65% of your monthly earnings throughout the term of policy, until you are well enough to go back to work.

What are the benefits?

By taking out living costs protection you can give you and your family the reassurance that you won't suffer any financial burden if you are unable to work due to an accident or sickness. Letting you focus on looking after your health and getting back to work.

Several of the providers include additional benefits such as:

Counseling and carer support - can be accessed for mental health and any support you may need if you are unable to do it yourself. A doctor’s second opinion - able to get the opinion of another doctor to give their view on your diagnosis or treatment. A medical, health & wellbeing helpline - a phone line that has professionals on the other side to help you get in touch with the right person for your issue.

What are other alternatives?

There are many types of insurance policies out there that can help protect your job, your home, your family etc. It’s important to consider Life Insurance and Critical Illness, many families tend to go ahead with these sorts of policies and may add on Income Protection or Living Costs Protection depending on their needs and circumstances.

Life Insurance is a policy that pays out when you pass away, during the policy term. You can get a joint policy with your partner or get two individual policies. The payout can be used to pay off any unexpected debts so that the family would not suffer financially.

Where Critical Illness is a policy that can protect you for over 178 different medical conditions, depending on the provider. The money can be used however you wanted but many use it to cover their lost income and focus on getting themselves better.

Want to get your family protected today?

Protect your family and the income into the home by discussing your options with Emma or Gemma at Cover My Bubble. We can chat simply and clearly to help you understand the products and best options for your circumstances. We have no fees or charges and can offer policies from all the top UK insurance companies.