This policy can help pay the bills

With the effects of the cost of living crisis still making waves across the UK, now is not the time to take risks with your finances.

According to the Office of National Statistics, private rental prices paid by tenants in the UK rose by 5.0% in the 12 months to May 2023, up from 4.8% in the 12 months to April 2023.*

What has insurance got to do with this?

Having the right financial protection in place can ensure that if the unexpected were to happen, your loved ones could be financially protected and you can still pay for your essential outgoings every month.

Let's look at the numbers

Whether you rent or not, the numbers are a little concerning.

The National Panel of Tenants and Service Users report showed that 83% are worried about future rent affordability, mainly due to future increases. Almost one in three (31%) said the level of rent was the main factor in difficulty paying.

With rent going up and showing no sign of stopping, taking out a policy such as income protection is a smart money move.

How would you pay the rent if you suddenly couldn’t earn your regular income due to illness or injury? Income protection can act like a monthly income, typically covering around 60% of your salary, which could help cover rent if the unexpected happens.

Beyond rent: The extended benefits of income protection

Income protection is much more than just covering your rent. This policy can cover all sorts of daily expenses, offering financial stability during turbulent times.

Diving deeper into this research, almost two in three (59%) were worried that future rent rises would cause more problems, while 15% said income changes.

By acting like your regular income, an income protection policy can help pay for all sorts. Here are just a few ideas:

• Rent or mortgage payments
• Food shopping
• The bills
• Childcare costs
• Council tax
  
  

What’s the difference between income protection and critical illness cover?

Two very different policies. But one crucial thing in common. Both of these policies can financially protect you against illness.

Income protection pays you monthly bursts of cash, designed to help you pay the bills if you suddenly couldn’t work due to illness or injury. This is more of a long-term policy, and can financially support you until you can return to work.

Critical illness cover can pay out a cash lump sum if you were diagnosed with a critical illness defined in your policy conditions.

Which policy is right?

There are tons of different policies out there, but which is best for renters?

If you’re a renter, income protection could be the right policy for you. This type of policy protects the money you earn. So, suppose you suddenly couldn’t work as usual due to illness or injury. In that case, your income protection policy can help save the day.

Seeking advice is the best way to ensure you get the right cover at the best price. At Busy Bee, we always consider the complete picture of your circumstances and recommend the best policy to fit your lifestyle.   


Don’t put it off

Having the right insurance is a surefire way to give yourself one less thing to worry about.

Putting off sorting your insurance could leave you strapped for cash and struggling if something unexpected happens.

Need help deciding which policy is right for you? Want to speak to a friendly UK-based expert about insurance? Then please get in touch with us by starting a free quote today. 

*Office of National Statistics