Who pays the bills when you fall ill?

With the cost of living and inflation on the rise, many may be wondering how they can afford to pay their bills should they fall ill or can no longer work. Luckily, there are protection policies that can be put into place to ensure your family can still cover your monthly bills.

My client, Samantha, and her husband, James, have two young children together. Unfortunately, at the age of 36, Samantha was diagnosed with Multiple Sclerosis.

Luckily, Samantha and James had the foresight to ensure they were well protected in the event of ill health or death. Therefore, when the diagnosis came they did not have to worry about their finances on top of everything else. As part of their financial plans, they had a critical illness policy which paid out and allowed them to pay off their mortgage in full.

Samantha also has income protection which, 3 months after she was diagnosed, began to provide a monthly income and will continue to do so until she either becomes well enough to return to work, or she reaches retirement age. The average duration for an income protection claim is over 6 years, and would generally cover you for any reason, so if the GP signs
you off as unable to work, you could claim.

As the income protection policy was set up to include an inflation-proofed income, it will also increase each year in line with the Retail Prices Index, meaning she will still be able
to afford the bills in a time of high inflation, when everything is going up year on year. Samantha may decide to go back to work on a part-time basis, depending on how she feels, and if so, her income protection will continue to be paid at a lower level, considering her reduced income.

If these policies had not been in place, the family would have to seriously reduce their monthly expenditure due to the reduced level of income. Also, as Samantha has to attend hospital appointments – which involves driving, fuel and parking costs – further budgeting would be required to account for this additional spending, and so would have further repercussions.

If you and your family rely on your income and you have not got income protection in place, please get in touch so that we can find the right cover for you should the worst occur. Give our Independent Financial Advisers a call on 0117 450 1300.