Do you need income protection as a young adult?

Do you need income protection as a young adult?

I’m 24, and like most people my age, it wasn’t until recently that I actually knew what income protection was, or how important it can be!

Working at Cura really opened my eyes to the importance of protection insurance. I had been going about my life without a care in the world, and protection insurance didn’t cross my mind once. After being with Cura for a few years, things have changed massively! I feel like I have a relatively good understanding of protection insurance, or at least why a person might need it and how beneficial it can be. I have seen first hand the impact that protection insurance can have on a person’s life, it really can be life changing.

As a person without any dependants, a mortgage or any other large debts, the need for me to have life insurance is reduced massively. However, since I have a job, there absolutely is a need for income protection.

It’s easy to say that, but there are a few things to weigh up before making a decision.

Income protection isn’t necessarily expensive, it can work out to be as little as £1 a day, so that could just be one takeaway less a month or a few less coffees. Realistically, that amount isn’t going to make too much of a dent in my disposable income. That can’t be said for everybody. Depending on what you’re doing for work, how much cover you want and things such as your health, the cost of an income protection policy can be more expensive, which is where people might then have to decide if it’s something that they really need.

Another thing to consider is how long could I cope if my monthly income was to suddenly stop? As mentioned, I don’t have any dependents relying on me nor do I pay towards a mortgage, but I certainly do have monthly bills to pay such as rent and the cost of everyday living, and I can’t just suddenly stop paying for those if my income were to stop. I will still need to eat and have a roof over my head. So, how long will my savings last? Weeks, months? Most people in the UK only have enough money in savings to last a few weeks without their regular income.

The third and probably last important thing I thought about was the alternatives. Is there anything else I can do to still have protection but maybe not have to pay? Or not have to pay as much? As a young adult, paying £30-40 a month for financial protection wouldn’t break the bank, but without the need for financial protection crossing my mind previously, there are many ways I could be spending that money. We’re fortunate enough in the UK to have access to statutory sick pay, which on the surface sounds great, but in reality it doesn’t give you much to work with. I can’t speak for everybody, but I know the £99.35* a week wouldn’t cover my rent, never mind bills and other necessary expenses too. Some people might have generous work sick pay, which could be a reason for you to not get income protection, but it really is important to know exactly what you will receive so that you can make an informed decision. It could be that your sick pay is a reasonable amount but you would still need slightly more money to be comfortable, in which case a small income protection policy to top up your sick pay might be a good idea. Some employers also enrol their staff into protection insurance policies, so taking a look into my options within Cura was another crucial step.

After having thought about those things, I really could see a need for income protection, especially for me personally. Knowing that I won’t struggle if I am off work ill is enough for me to be swayed towards an income protection policy, the peace of mind alone is priceless. Working where I work, it’s pretty easy for me to ask any questions I might have, and I know I’m in good hands when it comes to arranging an income protection policy. Not everybody is in the same position, but luckily enough Cura has many advisers whose sole purpose it is to offer advice, answer questions about protection insurance and help to arrange the all important, much needed policies.

*Correct as of 13th February 2023.

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