Archive context (January 2023): this article was originally prompted by a 2022 household-finances study and the cost-of-living discussion at that time. Its figures are historical, not a measure of current household finances or insurance prices.
An interruption to earnings can make regular commitments harder to manage. The useful question is personal: how long could your household cover essential spending if its main income stopped, and what support would be available?
1. Review your emergency savings
List essential monthly costs and consider what readily accessible savings you could build without compromising immediate needs. The right target depends on your circumstances. MoneyHelper explains how to plan an emergency fund.
2. Check sick pay and income protection
Read your employer’s sick-pay terms and any existing cover. Statutory Sick Pay rules and rates can change, so check the current GOV.UK guidance rather than relying on a 2022/23 figure.
Income Protection may pay a proportion of earnings if you cannot work because of illness or injury, subject to the policy’s incapacity definition, waiting period, benefit limit, exclusions and term. It is not a guarantee of full earnings or an automatic payout. Compare the proposed waiting period with any sick pay and savings you could use. Read MoneyHelper’s Income Protection guide and our current Income Protection page.
3. Revisit life cover
Life Insurance can provide a benefit to eligible beneficiaries if a valid claim meets the policy terms. Consider existing workplace cover, dependants, debts, the amount and length of protection needed, and affordability. Premiums depend on the individual and policy; this archived article is not a price or savings quotation.
Our Life Insurance Planning Guide helps organise the questions but does not calculate a recommended amount or issue an instant quote. You can then start a personal protection enquiry or contact IM-Insured to discuss suitable next steps. Cover, availability and price are subject to insurer assessment and policy terms.
