Disability Insurance Protection
What about State help?
One of the most common reasons for deciding against buying
protection products is the mistaken belief that the benefits
system will come to the rescue if it all goes pear-shaped.
The truth is that you can no longer rely on the Government.
State benefits for a single person are currently under
£60 per week. Could you manage on that? The typical state
benefit for two adults with two children is £96 per week;
the maximum is £134 per week. Could you support your family
on this?
Since October 1995 new mortgage borrowers will receive
no state help for the first nine months of unemployment
or disability. Existing mortgage borrowers receive nothing
for the first two months, only 50% for the next four months
and then full benefit for mortgages of up to £100,000 provided
they qualify for Income Support. The Government themselves
estimate that 70% of mortgage borrowers will not get Income
Support due to savings, income, or a working spouse or partner.
In 1998 alone, the introduction of a new incapacity criteria
resulted in 102,000 claimants being turned down for state
benefit. An independent doctor (not your own) will carry
out your assessment and you must be incapable of doing any
work, not just your normal job, to qualify for state benefit.
