Your ability to earn an income is one of your most valuable assets. Yet, many people overlook the importance of protecting it. Income protection insurance can provide a financial safety net, ensuring you and your family are protected in the event of illness or injury. Here are 5 reasons why I believe every locum should consider getting their income insured:

Tax Benefits: While there are no tax deductions for the premiums you pay for income protection, the benefits would be tax free. Typically, coverage through an employer (pharmacy) is taxable because you are not paying for the coverage yourself. If you're paying for your own individual disability policy or income protection, your benefits will be provided to you tax free from the insurance company.

Your Biggest Assets: Your two biggest assets are your life and your ability to earn an income. There is always something out there that can make us sick and locums are more prone to certain diseases than others.  For instance, musculoskeletal disorders such as neck and back pain, due to positioning at work are prevalent. According to reports from the Association of British Insurers, claims for these issues were the main cause for an individual income protection claim, a 9% increase from 2021 accounting for 34%. 2022 was the second year in a row that musculoskeletal issues were the leading cause of claims. Imagine if you had a machine in your basement that spit out £70,000 a year. Would you insure that machine? Of course you would! Well, you are that machine, so why wouldn't you insure yourself?

The chances of a 20 year old missing work due to sickness or injury before age 67 is 25%. That is pretty high compared to the number of auto & home insurance claims made. Don't you think it's backwards that you are forced to cover your home and your vehicle, but not your life or your income? And we just accept this philosophy. Seems crazy to me.

Increase coverage: The biggest advantage to having income protection coverage is you usually can increase coverage levels without having to go through any health exams again.

Fully customisable: The beauty of these income protection options is that they can be fully customised to fit your individual situation. If you don't want to set aside much, say only £25 a month, for income protection coverage then we can look at the options you have for that much premium. Some coverage is better than none and having some amount of guaranteed income if you are unable to work is better than having nothing at all.

Quality of life: When you're in a line of work that pays significant money, securing your income is important. You need to take steps to ensure your income is protected in the event something happens and you are thus unable to work, causing you to have a shortfall of income for an extended period of time.

Consider getting income protection insurance as a vital part of your financial plan.