In February 2023, we received a powerful testimonial from Paul, a self-employed electrician. His real-life example illustrates an income protection success and why it’s of critical importance. Let’s revisit Paul’s experience and see how the right financial decision made a world of difference during a challenging time.
The Initial Consultation: A Decision That Made All the Difference
Back in August 2021, Paul came to us with the intention of taking out a critical illness policy. However, after a few probing questions from our principal advisor, Mark, it became clear that income protection would be a more comprehensive solution for Paul’s situation.
Mark explains, “As a self-employed individual, Paul didn’t have the safety net of company sick pay or even statutory sick pay to fall back on. We realised that even a short-term illness could be financially catastrophic for him.”
Income protection, unlike critical illness cover, doesn’t just protect against life-threatening conditions. It covers a wide range of illnesses and injuries that could prevent you from working, including the number one reason for claims: musculoskeletal conditions.
The Unexpected Turn of Events
Just a year after taking out the policy, Paul’s foresight paid off in ways he couldn’t have imagined. He was hospitalised with a medical condition that kept him out of work for eight months. For a self-employed person, that meant eight months of zero income.
“If I hadn’t had the income protection policy,” Paul reflects, “I don’t think we could have stayed in our home. We would possibly have had to move back to our parents’. Even paying for groceries would have been an issue.”
Importantly, Paul’s condition was not critical and would not have been covered under a critical illness policy, underscoring the value of Mark’s advice to take an income protection policy instead.
The Claims Process: A Beacon of Hope
One of the concerns many people have about insurance is the claims process. Paul’s experience, however, was reassuringly smooth:
“The claims process was really easy,” he says. “I received follow-ups from the insurer who were so helpful and proactive, giving me peace of mind. They even told me that if the condition flared up in the future, I could claim again!”
When asked about his feelings when the claim was authorised and the monthly payments started, Paul’s relief is palpable: “It was a total relief. Thank God there was light at the end of the tunnel in a financial sense. It was a massive burden lifted.”
A Message to Others
Paul’s message to other self-employed individuals or employees who haven’t considered income protection is clear and emphatic: “Do it. In the grand scheme of things, it’s a small cost, and it really helped us through a very tough time.”
His partner, Katie, adds, “Before we spoke to Mark, we had not even heard of Income Protection! We’re extremely happy that Mark advised us on this. In hindsight, it was the best decision we could have made.”
The Bigger Picture
Paul’s story is a powerful reminder that life can be unpredictable, but with the right income protection in place, you can have peace of mind knowing you are financially prepared for the unexpected.
For self-employed individuals, the need is even more crucial. With no company sick pay to fall back on, and statutory sick pay (currently at £118.75 per week) often insufficient to cover basic living expenses, income protection can be the difference between financial stability and crisis.
Act This Income Protection Week
If you haven’t reviewed your insurance policies recently, now is the time. Whether you’re self-employed like Paul or an employee concerned about the limitations of statutory sick pay, income protection could be a vital addition to your financial safety net.
At Mark One Financial Services, we’re committed to helping you find the coverage that’s right for you. Don’t wait for the unexpected to happen. Let’s talk about how we can secure your financial future today.
Remember, it’s not just about protecting your income – it’s about protecting your way of life, your home, and your peace of mind. As Paul’s story shows, the right decision today can make all the difference tomorrow.
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Note – The information contained within was correct at the time of publication but is subject to change.