What Would Happen Financially If You Couldn’t Work Tomorrow?

Most of us insure our homes, cars and phones.

But what about the thing that pays for all of them - our income?

If illness or injury meant you suddenly could not work, how long could you continue covering your mortgage or rent, household bills and everyday spending?

It is not always a comfortable question, but it is an important part of financial planning.

How Long Would Your Savings Last?

A useful place to start is by looking at your monthly outgoings.

Think about your:

• Mortgage or rent

• Household bills

• Food and everyday spending

• Loan or credit repayments

• Childcare or family costs

• Pension and savings contributions

Then ask yourself how long your savings could realistically cover those costs.

For some people it may be several months. For others, losing an income could create pressure very quickly.

Do You Know What Sick Pay You Would Receive?

If you are employed, check exactly what your employer would provide if you were unable to work for an extended period.

Some employers offer generous sick pay or additional benefits, while others provide much less.

If you are self-employed, the gap can be even more significant because you will not usually have employer sick pay to fall back on.

Knowing what protection you already have is an important first step.

Could One Income Cover Everything?

If you live with a partner, you may assume their income could keep the household going.

But would it comfortably cover everything?

Consider the mortgage, utilities, childcare, food and other commitments alongside any reduction in your own income.

This is where looking at your finances together can be useful.

The aim is not to plan for the worst at every turn. It is simply to understand whether

there is a financial gap and how significant it might be.

What Is Income Protection?

Income protection is designed to replace part of your income if illness or injury prevents you from working.

Policies vary in how much they pay, when payments begin and how long they continue, which is why it is important to understand exactly what you are covered for.

It is different from critical illness cover, which typically pays a lump sum if you are diagnosed with one of the conditions specified in the policy.

Both can play different roles within a wider protection plan.

Protection Should Fit Around Your Life

There is no single level of protection that is right for everybody.

The amount and type of cover you may need will depend on things such as:

• Your income

• Your regular expenditure

• Your mortgage or rent

• Your existing savings

• Your employer benefits

• Whether anybody depends on your income

Your circumstances can also change.

Moving home, having children, changing jobs, starting a business or increasing your income can all be reasons to review whether existing protection is still suitable.

Why Speak to Brancaster House?

At Brancaster House Financial Planning, protection is not treated as a standalone product.

Our team looks at your income, financial commitments and wider plans to understand what you may actually need to protect.

That may include income protection, critical illness cover or life insurance, depending on your circumstances. Brancaster House provides protection advice alongside wider financial planning, mortgages and pensions for clients across Norwich and Norfolk.

Our Mortgage and Protection Specialists can help you understand what cover you already have, where there may be gaps and which options may be suitable for your needs and budget.

Could Your Financial Plan Cope If Your Income Stopped?

Protection planning is ultimately about making sure an unexpected event does not automatically derail everything else you have worked towards.

You may never need to claim on a protection policy.

But understanding what would happen financially if you could not work can give you the opportunity to address any gaps before you need to rely on the plan.

If you are unsure whether your current protection is enough, Brancaster House can help you review your position.

Book a complimentary Financial Health Check and make sure your financial plan is prepared for the unexpected.

We’re here for every chapter.