Aviva has launched an income protection plan covering basic living costs that could help the self-employed and contractors. The insurer’s Living Costs Protection product provides a monthly fixed benefit of between £500 and £1,500 to cover outgoings such as a mortgage, rent or bills if an individual cannot work due to illness or injury.
There is no limit to the number of claims a customer can make, and the payment period runs for up to 12 months for each individual claim.
Aviva will not conduct a financial assessment or apply deductions at the claim stage, and the customer will receive their selected benefit amount once Aviva has accepted their claim.
Living Costs Protection could help with fluctuating incomes such as the self-employed and contractors, where the income-based benefit calculation required for traditional income protection at both point of sale and claim can be complex. In addition, it could provide a more affordable option for those in higher-risk occupations.
In addition we are all living longer, and one thing we may have is time off work with illness which could prove disastrous to family income. According to the Chartered Insurance Institute, a million people a year in the UK suffer a prolonged absence from work due to sickness, which can result in financial hardship – yet Aviva’s statistics show only 8 per cent of UK families hold some form of income protection.