For most of us, our mortgage is the biggest and most important bill we pay each month. But have you ever stopped to consider what would happen if you were suddenly unable to work due to illness or an accident?
It’s a question worth asking. With the cost of living remaining high, it’s sensible to check how you would manage financially if your regular income stopped.
At Yes Mortgage Services Limited, we believe that protecting your home is just as important as buying it. This guide explains the reality of sick pay and how you can create a financial safety net for you and your family.
The Reality of Statutory Sick Pay (SSP)
If you are employed and become too ill to work, you may be entitled to Statutory Sick Pay (SSP). According to the latest UK Government figures, this is just £118.75[1] per week.
To put that into perspective, it works out to less than £480 per month. For the vast majority of people, this amount would not be enough to cover their mortgage payment, let alone other essential household bills like food, energy, and council tax.
Furthermore, SSP is only paid for a maximum of 28 weeks, and you typically won’t be paid for the first three days you are off sick[2].
What If You Are Self-Employed?
If you are self-employed, the situation is even more critical. You have no entitlement to Statutory Sick Pay. This means that if you are unable to work due to illness, your income stops completely from day one. The financial pressure to return to work quickly can be immense, even when you haven’t fully recovered.
How Can You Protect Yourself and Your Home?
No one likes to think about becoming unwell, but preparing for the possibility is a responsible step. Protection insurance acts as a safety net, ensuring that money worries don’t add to a stressful situation. There are two main types of cover that can help:
- Income Protection Insurance
This is a policy designed to replace a portion of your monthly income if you can’t work due to any illness or injury.
- It pays out a regular, tax-free monthly sum until you are able to return to work, you retire, or the policy term ends.
- You can choose how soon the policy starts paying out after you stop working (e.g., after 4, 8, or 13 weeks) to align with any sick pay you receive from your employer.
This cover is ideal for paying your mortgage and keeping up with your regular bills, allowing you to focus on your recovery.
- Critical Illness Cover
This type of policy pays out a one-off, tax-free lump sum if you are diagnosed with one of the specific serious illnesses listed on the policy, such as some forms of cancer, a heart attack, or a stroke.
- The lump sum can be used however you see fit – for example, to pay off your mortgage entirely, cover medical costs, or adapt your home.
Already Have Cover? It’s Wise to Review It
Even if you took out protection insurance in the past, it’s important to review it regularly. Life changes like moving home, getting a pay rise, or starting a family can mean your existing cover is no longer enough to meet your needs, potentially leaving you underinsured.
Get Peace of Mind with Expert Advice
Having the right protection in place provides peace of mind, knowing that your home and family are secure if the unexpected should happen.
Kelly is our protection and insurance adviser and can help you understand your options. She can review any existing cover you have and search a comprehensive panel of insurers to find the right solution for your circumstances. And because we charge no broker fees, you can get this expert advice at no extra cost.
Contact us today for a friendly, no-obligation chat to ensure you have the right protection in place.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We do not charge a fee for mortgage advice.
Sources:
[1] Gov.uk (2025). Statutory Sick Pay (SSP) Available at: https://www.gov.uk/statutory-sick-pay [Accessed 14 Jun 2025].
[2] https://www.gov.uk/statutory-sick-pay/what-youll-get\
Please be aware that by clicking on to the above links you are leaving Yes Mortgage Services Limited website. Please note that Yes Mortgage Services Limited nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
All the information in this article is correct as of the publication date of 14 June 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics, and images, does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
At Yes Mortgage Services, we offer a comprehensive range of products from across the market.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.
