According to figures published in July 2007 by the Department of Work and Pensions, 2.2 million people of working age will be off work for at least 6 months at any one time through sickness and disability.
Some employers provide generous sickness leave of weeks or even months, but many don't, and if you are one of these, or if you are one of the millions that are self employed in the UK, you will not benefit from this protection.
If you are employed on a regular contract, the law states that your employer provides Statutory Sick Pay for up to 28 weeks, subject to Government rules. However, this is likely to be much less than your usual earnings and could leave you financially vulnerable. At present the statutory sick pay level is £79.15 per week (from 6th April 2009).

Income protection pays you a regular income if you have an illness or an accident which prevents you from working for a length of time after an initial 'deferred' period. Usually you can only insure up to a maximum of 60% of your gross earnings before tax. However, if you find yourself needing to claim all payments will be made free of income tax. It is possible to reduce your premiums by opting for a longer period before the first payment is made to you (this is called a deferred period). The longer the deferred period you choose the lower your premiums will be. Deferred periods typically last from 1 month to 1 year. This will be determined by the length of time you feel you could manage financially before benefits start.

If you are self employed or a contractor, it is unlikely that you will have any benefits in the event of illness, and in this case income protection could be essential. Even if you are employed on a egular contract, it is worth checking exactly what would happen in the event of a long term (but not critical) illness. Whilst many companies provide schemes for their employees, the quality and range of cover provided can vary radically. If you are in any doubt it makes sense to discuss income protection with us.