"We quibble over our car and/or home insurance premiums but seem loath to pay a similar amount to protect the very income that pays for that insurance, the mortgage, the bills, the investments etc. Forget about pensions, mortgages and investments until you have protected the income that funds them. State benefits can provide relatively little, are difficult to get and without adequate income protection provision you can forget about life as you know It.” says Paul Avis at Canada Life.
He continues, “What is a pension other than a deferred income? Why aren’t employers and employees protecting their incomes whilst they are at work? Well of course the perception of both employers and employees is that ill health or disability will never happen to them, but, bad news as 2.7 million people claim state health benefits as they cannot work, and, of these 1.23 million have been claiming for more than five years.”
And ends with, “If the worst should happen surely the state will look after me? Well let us forget the potentially massive reduction in income that state benefits provide versus earned income and net pay and focus on the chances of getting that benefit under the new state benefit testing regime. Did you know that of the 195,500 new claimants applying for benefit between October 2008 and February 2009 that of those audited 36 per cent were found fit for work and therefore not eligible and 38 per cent ceased claiming before the assessment was completed? Furthermore 11 per cent were eligible and perhaps could work in the future, 5 per cent would most likely not and 10 per cent were under assessment. So, what would happen to you if you were off sick?”