Myth busting insurance protection for renters
See 5 common myths renters will hear about insurance
Protection insurance comes in several forms, with each product protecting against different events and offering various levels of cover.
Life insurance is the most well-known form of protection – if you die it’ll pay out a tax free lump sum to your loved ones. Income protection, on the other hand, is designed to cover you if you have to stop working due to an accident or illness.
The myths vs the reality
There’s plenty of myths about protection that may cause confusion about which insurance is right for you. Let’s clear some of them up so you can start securing your future.
1. I only need life insurance when I own a home
1. You may think that you only need life insurance if you’ve got a mortgage to pay off. But there are other financial commitments to think about, especially if you and your loved ones are renting. Life insurance pays out a tax-free lump sum if the worst were to happen. This could help pay for things like rent payments, bills, loans, and other everyday expenses. It’s an invaluable form of protection if one of you were to pass away. Tenancy agreements don't always automatically end because the tenant has passed away. Sometimes, loved ones are expected to pay the remaining rent owed.
2. If I’m sick I’ll be covered through work
2. Your employer isn’t required to pay your full salary if you get critically ill and there may be a limit to how long you get sick pay. As a minimum you’d get the Government’s statutory sick pay for up to 28 weeks, but anything more depends on your employment contract.
Income protection insurance could help remove the uncertainty by providing a monthly income to cover your living costs if you're unable to earn your regular salary. If you became seriously ill, it's worth considering Critical illness insurance.
3. Self-employed people can’t take out income protection
3. Just when you thought there weren’t any more perks to being self-employed... You can absolutely take out income protection cover if you work for yourself. In fact, without a sick pay scheme to rely on, you might be more in need of some financial protection if an illness or injury prevented you from working.
4. My health insurance will cover me if I get critically ill
4. Health insurance covers you for medical expenses you incur for acute illnesses or injuries. If your illness is so severe that you cannot work, then you could end up struggling financially, even with your medical bills being covered. Our Income protection insurance and Critical illness cover products could help to provide further financial support to you and your family.
5. Insurance companies never pay out
5. You might have heard people say that insurance companies avoid paying claims. In reality, this isn't the case. In 2023 we paid out on 99.3% of life insurance claims that our customers made. As long as you provide correct and truthful information when you apply for your policy, we’ll pay out in the event of a claim.
Find the right protection for you
Life insurance
If you passed away, could your loved ones cope without your income? Life insurance protects renters in the same way it protects homeowners. If you passed away while renting, your loved ones would have financial protection with a lump sum payout helping to cover their rent and living costs.
Critical illness cover
If you were taken seriously ill and unable to work for a long period, how would you keep on top of your outgoings? Critical illness cover can help by giving you a lump sum payment to support things like rent, bills, and other living expenses.
Income protection
Could you pay the rent if you were injured and unable to work? Income protection can assist with monthly payments of up to £1,500 a month, for up to a whole year, helping you cover the costs of renting and everyday expenses. That way, you can focus on recovering.
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